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Revision notes
IGCSE
Business
Cambridge International
Net Profit - Calculations

Net Profit - Calculations

Business: Cambridge International GCSE (2027 Exams), topic 5.5.5

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Previous topic5.5.4 Net Profit Next topic5.5.6 Operating Profit Margin

Business: Cambridge International GCSE (2027 Exams) contents

1 Understanding Business Activity
2 People in Business
- 2.1 Human Resource Management (HRM)
  2.1.1 Contracts of Employment
  2.1.2 Recruitment
  2.1.3 Benefits of an Effective Recruitment Process
  2.1.4 Reducing the Workforce
  2.1.5 Legal Controls Over Employment
  2.1.6 Training
  2.1.7 End of Topic Test - The Workforce
  2.1.8 Application Questions - The Workforce
  2.1.9 Diagnostic Misconceptions - Recruitment
- 2.2 Organisation & Management
  2.2.1 Internal Organisational Structures
  2.2.2 Business Functions & Definitions
  2.2.3 Centralised vs. Decentralised Structures
  2.2.4 Tall & Flat Organisations
  2.2.5 The Impact of Organisational Structure on Managing
  2.2.6 Leadership Styles
  2.2.7 Trade Unions
  2.2.8 End of Topic Test - Org Structure
- 2.3 Methods of Communication
  2.3.1 Communication in Businesses
- 2.4 Motivating Employees
  2.4.1 Motivation in the Workplace
  2.4.2 Financial Methods of Motivation
  2.4.3 Non-Financial Methods of Motivation
  2.4.4 Diagnostic Misconceptions - Money
3 Marketing
4 Operations Management
- 4.1 Production of Goods & Services
  4.1.1 Production Processes Overview
  4.1.2 Job Production
  4.1.3 Flow Production
  4.1.4 Batch Production
  4.1.5 Production Efficiency - Lean Production
  4.1.6 Managing Stock - Just in Time
  4.1.7 Technology & Production
  4.1.8 Factors of Production
  4.1.9 Diagnostic Misconceptions - JIT vs JIC
- 4.2 Cost, Scale of Production & Break-Even Analysis
  4.2.1 Costs
  4.2.2 Costs - Calculations
  4.2.3 Economies of Scale
  4.2.4 Diseconomies of Scale
  4.2.5 Break-Even Analysis
  4.2.6 Profits and Losses - Calculations
  4.2.7 Diagnostic Misconceptions - Fixed Costs
  4.2.8 Diagnostic Misconceptions - Economies of Scale
  4.2.9 Diagnostic Misconceptions - Break-Even
- 4.3 Achieving Quality Production
  4.3.1 Importance of Quality
  4.3.2 Measuring Quality
  4.3.3 Quality control
  4.3.4 Total Quality Management
  4.3.5 Benefits of Maintaining High Product/Service Qual.
  4.3.6 Costs of Maintaining High Quality/Service
  4.3.7 End of Topic Test - Operational Decisions
- 4.4 Location Decisions
  4.4.1 Business Location
  4.4.2 Nature of Business Activity
5 Financial Information & Decisions
- 5.1 Business Finance
  5.1.1 Finance
  5.1.2 Sources of Finance
  5.1.3 Factors Affecting Financing
- 5.2 Cash Flow Forecast
  5.2.1 Cash Flow
  5.2.2 Cash Flow Forecasts
  5.2.3 Consequences of Cash Flow Problems
  5.2.4 Cash Flow - Calculations
  5.2.5 Solutions to Cash Flow Problems
  5.2.6 Diagnostic Misconceptions - Cash Flow
- 5.3 Profit & Loss
  5.3.1 Profit
  5.3.2 Profit - Calculations
  5.3.3 Financial Statements
  5.3.4 Income Statements
  5.3.5 Financial Data
  5.3.6 Information from Graphs & Charts
  5.3.7 End of Topic Test - Finance
  5.3.8 Grade 9 - Finance
- 5.4 Statement of Financial Position
  5.4.1 Elements of a Statement of Financial
- 5.5 Analysis of Accounts
  5.5.1 Gross Profit
  5.5.2 Liquidity
  5.5.3 Gross Profit - Calculations
  5.5.4 Net Profit
  5.5.5 Net Profit - Calculations
  5.5.6 Operating Profit Margin
  5.5.7 Markup
  5.5.8 Return on Capital Employed (ROCE)
  5.5.9 Current Ratio & Acid Test Ratio
6 External Influences on Business Activity
- 6.1 Economic Issues
  6.1.1 Business Cycle
  6.1.2 Objectives of Government Economic Policy
  6.1.3 Provision of Public Services
  6.1.4 Taxation & Constraints on Public Spending
  6.1.5 The Government & Business Activity
  6.1.6 Interest Rates
  6.1.7 Interest Rates - Calculations
  6.1.8 Diagnostic Misconceptions - Recession
- 6.2 Business & the International Economy
  6.2.1 Multinational Companies
  6.2.2 Exchange Rates
- 6.3 Business & the Environment
  6.3.1 Globalisation
  6.3.2 Environmental Issues
  6.3.3 Business and Sustainability
- 6.4 Business & Ethical Issues
  6.4.1 Ethical Considerations for Businesses
  6.4.2 Benefits of Being Ethical
- 6.5 Pressure Groups
  6.5.1 Pressure Groups

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