• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

Business Studies(9707) Post your doubts here

Messages
95
Reaction score
39
Points
8
does any of you got notes,ppt ,website or any other resource for critical path analysis ( CPA )
 
Messages
1,162
Reaction score
6,306
Points
523
I believe it is due to the fact that both revenue and capital expenditure has varying purpose, length of time and amount. Revenue expenditure tends to be in short term and relatively smaller in quantity as compared to capital expenditure. As a result short term sources of finance such as overdraft may be more appropriate for revenue expenditure whereas medium to long term finance may be more suitable for capital expenditure.
d def ws asked in d "a" part... thx :), bt could plz u give more points?
 
Messages
95
Reaction score
39
Points
8
WHY DO BUSINESSES DEPRECIATE ITS FIXED ASSETS?? question for five marks
help me out asap
 
Messages
1,162
Reaction score
6,306
Points
523
WHY DO BUSINESSES DEPRECIATE ITS FIXED ASSETS?? question for five marks
help me out asap
c, if u have a motorbike, brand new, it might cost you, say Rs 50,000. bt after 5 yrs, u want 2 sell it, will it b sold 4 d sm amt? ofc nt, its value will decrease. so is d case wid all other tangiable assets of a biz except land, it appreciates.
link: http://answers.yahoo.com/question/index?qid=20080914045109AAWr4Ed as given here, taxes, too, will b lowered
.....hp it helped... btw which ppr?
 
Messages
1,162
Reaction score
6,306
Points
523
DEPRECIATE ITS FIXED
ASSETS?? why
coz it has to, i guess... if u put up ur bike's value every yr as Rs 50 000, it will nt b true, for it doesnt have dat value... after a yr maybe its value decreases by 10% n u write it as Rs 45 000
logically to me, only dis mks sense...
 
Messages
2
Reaction score
2
Points
3
hello ... I'm new in this website.. well can you help me with break-even analysis advantages and uses .. also the operational efficiency .. and what does investment appraisal means and how is it used for the location decisions
 
Messages
98
Reaction score
86
Points
28
DEPRECIATE ITS FIXED
ASSETS?? why
The question I believe, is asking why do they want to sell/give out their fixed assets. We all agree that depreciation happens regardless, but in the context of the question it is quite understandable that it is trying to put an emphasis as to why they want to clear its fixed assets.

You may begin writing the question with defining fixed assets. Then proceed on your reasons as to why businesses would want to do so. It includes:-

- Improving liquidity position.
- As an internal source of finance for expansion.
- To reduce issues relating to high tied up capital - risk of the capital being obsolete, opportunity cost, cost of storage, etc.

Any two well explained should be enough for your five marks. :)
 
Messages
98
Reaction score
86
Points
28
hello ... I'm new in this website.. well can you help me with break-even analysis advantages and uses .. also the operational efficiency .. and what does investment appraisal means and how is it used for the location decisions

Break even analysis is used to:-

- Identify the break even point - that is the level of output required to cover up all the costs paid for by the business.
- Identify the margin of safety of the business - how far or "safe" the business is from its break even point.
- Analysing how an increase/decrease in cost leads to the level of profitability in any given output.

You can use those as your advantages as well. :)

As of operational efficiency it is the ability of the business to produce output with a given unit of input. An increase in operational efficiency means an increase in the number of output that can be produced with the given unit of output. It can be measured with several way such as labour efficiency, capital efficiency, etc.
 
Messages
98
Reaction score
86
Points
28
Kangxidi do v need 2 define in a 5 mk ans?

I usually prefer to define my concept as:

1. It straightaway creates the idea to the examiner that you do understand what you will be discussing about.
2. It automatically creates a platform for you to base your argument on.
3. Your examiner may award a mark (or is instigated to do so) since you are deemed to be able to grasp the concept.
 
Messages
98
Reaction score
86
Points
28
d def ws asked in d "a" part... thx :), bt could plz u give more points?

The question is for three marks, as a result it is enough to briefly discuss on why businesses would want to use different sources of finance for capital/revenue.

1. Short term vs. long term.
2. Strategic vs. tactical.
3. Cost of obtaining the chosen sources of finance.
4. Impact on the future of the business.

Any two explained should be enough, but if I were you I would note down the first point as it seems like it is the key to the answer.
 
Messages
2
Reaction score
2
Points
3
Break even analysis is used to:-

- Identify the break even point - that is the level of output required to cover up all the costs paid for by the business.
- Identify the margin of safety of the business - how far or "safe" the business is from its break even point.
- Analysing how an increase/decrease in cost leads to the level of profitability in any given output.

You can use those as your advantages as well. :)

As of operational efficiency it is the ability of the business to produce output with a given unit of input. An increase in operational efficiency means an increase in the number of output that can be produced with the given unit of output. It can be measured with several way such as labour efficiency, capital efficiency, etc.

Thanks that was really helpful :) good luck in your exam (y)
 
Top