Class 12 Entrepreneurship: Business Arithmetic
Chapter 5: Business Arithmetic — master the numbers of business with unit pricing, break-even analysis, cash flow projections, budgeting, working capital, inventory control with EOQ, and return on investment. CBSE Class 12 Entrepreneurship notes covering 7 topics: Unit of Sale Unit Price and Unit Cost, Break-Even Analysis for Multiple Products, Cash Flow Projections, Budgeting and Managing Finances, Working Capital, Inventory Control and EOQ, and Return on Investment and Return on Equity.
Topics(5)
Unit of Sale, Unit Price and Unit Cost
Concept of unit of sale, calculation of unit price and unit cost, gross profit or gross margin per unit, with exercises from a stationery store, beauty parlour and restaurant. CBSE Class 12 Entrepreneurship notes
Break-Even Analysis for Multiple Products
Break-even point for single and multiple products using the weighted average and contribution margin approaches, and the sales mix concept. CBSE Class 12 Entrepreneurship notes
Working Capital
Need for fixed assets vs working capital, the operating cycle or cash conversion cycle, trading vs manufacturing business cycles, and gross vs net working capital. CBSE Class 12 Entrepreneurship notes
Inventory Control and EOQ
Types of inventory, inventory item characteristics, Pareto's 80/20 principle, ABC analysis, and the calculation of economic order quantity. CBSE Class 12 Entrepreneurship notes
Return on Investment and Return on Equity
ROI and ROE formulas, all-equity vs leveraged comparison, and an introduction to EBITDA. CBSE Class 12 Entrepreneurship notes