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English Learning Guide Competency 2 Unit 2: Maths Workshop 3 Centro de Servicios Financieros- CSF

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BUSINESS COSTING (PERCENTAGE/COST/PRICES/RATES/TAXES/LOANS/EXPENSES) This workshop attempts to help you strengthen your Math skills in English and business vocabulary, using the language in the development and understanding of different activities referred to percentage, prices, rates, taxes, loans and expenses. Objective: from the development of this workshop, you will be able to talk about business costing and what companies do to improve their business. 1. Work in pairs and discuss: - What do you understand for business costing?  The activity-based costing (ABC) system is conceived as an important decision-making tool. In this sense, it’s resulting use of great utility if the achievement of an integrated management of the processes and more precise and accurate levels of analysis for the quantification of the costs of a product or service is pursued.  El sistema de costeo basado en actividades (ABC por sus siglas en inglés) se concibe como una importante herramienta para la toma de decisiones. En tal sentido, su empleo resulta de gran utilidad si se persigue el logro de una gestión integrada de los procesos y niveles de análisis más precisos y certeros para la cuantificación de los costos de un producto o servicio. - What do you think determines the price of an item for sale in a company?  Generally, the price of a product must be above our costs so that profits are not impaired and the average market price is taken into account.  Generalmente se determina el precio de un producto debe estar por encima de nuestros costos para que se no perjudiquen las utilidades y se toma en cuenta el precio promedio de mercado. - Mention one example of pricing items to improve sales in a company you know.  Cross selling This strategy is also known as "cross selling." It is applied by encouraging the sale of a complementary product, associating it with a main product. Hence its name, since it offers a product or service as a complement to the one that is being purchased. Example of the cross selling strategy  Cross Selling Esta estrategia también se conoce como «venta cruzada». Se aplica incentivando la venta de un producto complementario, asociándolo con un producto principal. De ahí su nombre, ya que ofrece un producto o servicio como complemento al que se está adquiriendo Ejemplo de la estrategia de Cross Selling.

2. Look for the definition of the following words and give some examples.

COST: In economics, the cost or cost is the monetary value of the consumption of factors that involves the exercise of an economic activity aimed at the production of a good, service or activity. COSTO: En economía, el coste o costo es el valor monetario de los consumos de factores que supone el ejercicio de una actividad económica destinada a la producción de un bien, servicio o actividad. PRICE: The price is the value in money in which the cost of something is estimated, be it a product, good or service. As such, it comes from the Latin pretĭum, which means 'price', 'reward'. PRECIO: El precio es el valor en dinero en que se estima el costo de algo, sea un producto, bien o servicio. Como tal, proviene del latín pretĭum, que significa ‘precio’, ‘recompensa’ RATE: The percentage is a mathematical symbol, representing a given quantity as a fraction in 100 equal parts. It is also commonly called percent where percent means "out of every hundred units." PORCENTAJE: El porcentaje es un símbolo matemático, que representa una cantidad dada como una fracción en 100 partes iguales. También se le llama comúnmente tanto por ciento donde por ciento significa «de cada cien unidades» TAX: The tax is a class of tribute governed by public law, which is characterized by not requiring a direct or determined consideration on the part of the tax administration. IMPUESTO: El impuesto es una clase de tributo regido por derecho público, que se caracteriza por no requerir una contraprestación directa o determinada por parte de la administración hacendaria. LOAN: A loan is a financial operation by which a person (lender) grants, through a contract or agreement between the parties, an asset (usually an amount of money) to another person (borrower), in exchange for obtaining an interest (price of money). PRÉSTAMO: Un préstamo es una operación financiera por la cual una persona (prestamista) otorga mediante un contrato o acuerdo entre las partes, un activo (normalmente una cantidad de dinero) a otra persona (prestatario), a cambio de la obtención de un interés (precio del dinero). EXPENSE: Expense is the use or consumption of a good or service in exchange for a consideration, it is usually done through an outgoing amount of money. Also called egress. GASTO: Gasto es la utilización o consumo de un bien o servicio a cambio de una contraprestación, se suele realizar mediante una cantidad saliente de dinero. También se denomina egreso.

3. Skills practice: do the following activities to practice the learnt vocabulary and English structures.

3.1.READING PRACTICE: Read about business costing Before reading the text, identify the following vocabulary. Find the definition and use every word in one example.

fixed cost, variable cost, direct cost, indirect cost, payments, book cost, compute, profit, loss, filing returns, income, raw material, wage of labor, output, rent, salaries, depreciation, supervision, maintenance Costo fijo, costo variable, costo directo, costo indirecto, pagos, costo contable, cálculo, ganancia, pérdida, presentación de declaraciones, ingresos, materia prima, salario de mano de obra, producción, alquiler, salarios, depreciación, supervisión, mantenimiento

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English Learning Guide Competency 2 Unit 2: Maths Workshop 3 Centro de Servicios Financieros- CSF

Business Cost1 Definition: The Business Cost includes all the costs (fixed, variable, direct, and indirect) incurred in carrying out the operations of the business. It is similar to the real or actual costs that include all the payments and contractual obligations along with the book cost of depreciation on both the plant and equipment. The firms compute their business cost to determine the profit and loss and for filing returns for income tax. It is also used in several other legal procedures. There are several types of business costs: Variable Cost: The variable cost is the cost which changes with the change in the production. Such as: raw material, wages of labor, energy used in production, etc. Fixed Cost: The fixed cost is the cost which remains fixed irrespective of the level of output. Such as rent, salaries of employees, advertising, and promotional campaigns, etc. Direct Cost: The direct cost is the cost which can be assigned to the production of certain goods and services. Such as labor, material, fuel, power or any other expense related to the production of a product is the direct cost. Indirect Cost: The indirect cost is the cost which cannot be directly attributed to the production of goods and services. Depreciation, supervision, security, maintenance and administrative expenses are the cost incurred which cannot be assigned to a specific product or department and hence are classified as an indirect cost. Thus, the business cost is computed to determine the efficiency with which the firm is carrying out its business operations.

After the reading, answer the following questions:

- What does the firm do to determine the profit and loss and for filing returns for income taxes?  Businesses calculate their business costs to determine profit and loss and to file income tax returns.  Las empresas calculan sus costos comerciales para determinar las ganancias y pérdidas y para presentar declaraciones de impuesto sobre la renta. - Mention the 4 types of costs for running businesses.

   

Variable cost - Costo variable Fixed cost - Costo fijo Direct cost - Costo directo Indirect cost - Costo indirecto - What concepts can be assigned to Direct Costs?



Direct cost is the cost that can be assigned to the production of certain goods and services. Such as labor, material, fuel, energy or any other expense related to production. El costo directo es el costo que se puede asignar a la producción de ciertos bienes y servicios. Como mano de obra, material, combustible, energía o cualquier otro gasto relacionado con la producción.



Define the Indirect Cost. Use your own words. 

Indirect cost is that cost that affects the general production process of one or more products, so it cannot be directly assigned to a single product without using some allocation criteria. For example, rental of an industrial warehouse or salary of administrative personnel. Coste indirecto es aquel costo que afecta al proceso productivo en general de uno o más productos, por lo que no se puede asignar directamente a un solo producto sin usar algún criterio de asignación. Por ejemplo, alquiler de una nave industrial o salario de personal administrativo



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Taken from https://businessjargons.com/businesscost.html Used by SENA for academic purposes, exclusively.

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English Learning Guide Competency 2 Unit 2: Maths Workshop 3 Centro de Servicios Financieros- CSF

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3.2. LISTENING PRACTICE: listening what it costs to run a restaurant 2 Before listening: Work in pairs and discuss the following questions. - Talk about how popular restaurants in your city. Describe the type of food you can get there.

 

 

In the city of Bogota you can see a wide variety of restaurants each recognized for its season and why these restaurants give typical dishes from all over the country. En la ciudad de Bogotá se ve gran variedad de restaurantes cada uno se reconoce por su sazón y por qué estos restaurantes dan platos típicos de todo el país. - Describe a restaurant you like eating at and one where you don’t. The restaurant where I liked to eat the most is the atahualpa farm located in Usme and I have no place or restaurant that I didn't like to eat there. El restaurante donde más me ha gustado comer es el de la granja Atahualpa ubicado en Usme y no tengo lugar o restaurante que no me allá gustado comer. - What do you think it is necessary to run a restaurant? Give some examples. Use a restaurant you know as an example.

 

In a restaurant should be paramount its seasoning, hygiene and the way of preparing the dishes, that is what characterizes all the restaurants that I have gone. En un restaurante debe ser primordial su sazón, higiene y la forma de preparar los platos, eso es lo que caracteriza a todos los restaurantes que he ido

To watch the video follow this link: https://www.youtube.com/watch?v=pv5cwM5vmeg Look for the following words definition in English and their corresponding word in Spanish.

CEO, employees, owner, cents, net profit, expenses, sales, labor cost, gross wage, utilities, repair, maintenance, supplies, silverware, pest control, liability insurance, manager, staff, busy, empty, open, close, diligent, conscious, minimize, waste, spoilage, afford, overtime, reliable business.

CEO, empleados, propietario, centavos, beneficio neto, gastos, ventas, costo laboral, salario bruto, servicios públicos, reparación, mantenimiento, suministros, cubiertos, control de plagas, seguro de responsabilidad, gerente, personal, ocupado, vacío, abierto, cercano, diligente , consciente, minimizar, desperdicio, deterioro, costear, horas extras, negocio confiable.

Compute and establish the percentage of the following expenses presented in the video

What is the percentage for the Net profit of the restaurant based on a dollar income? _______ According to the video, mark the following statements as TRUE (T) or FALSE (F)

EXPENSES -CONCEPT

%

Labor cost

35%

Food supplies

30%

Utilities

16%

Repairs & Maintenance/ Marketing & Advertising/Direct Operating Expenses/ General & Administrative Interests/ Occupancy cost=

  

12%

Restaurant owners usually can take more than the 30% of their sales income FALSE The most expensive wage in a restaurant is the Labor Cost TRUE Food supplies is also part of the utilities of the restaurant FALSE

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Taken from: https://www.youtube.com/watch?v=pv5cwM5vmeg Used by SENA for academic purposes, exclusively.

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Learning Guide Competency 2 Unit 2: Maths Workshop 3 Centro de Servicios Financieros- CSF

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Legal & accounting, security services, computer and software fees, liability insurance and credit/debit card transactions, belong to the General and Administrative expenses TRUE

Now, classify the expenses into the types of cost presented in the reading section.

Labor cost/ Food supplies/ Utilities/ Repairs & Maintenance/ Marketing & Advertising/Direct Operating Expenses/ General & Administrative Interests/ Occupancy cost VARIABLE COST

FIXED COST

Repairs & Maintenance

Utilities Occupancy cost

DIRECT COST

INDIRECT COST

Food supplies Labor cost General & Administrative Interests Direct Operating Expenses

Marketing & Advertising

3.3. SPEAKING PRACTICE: Advertising campaign Pretend you’re still working at the advertising agency and plan a marketing campaign based on the products / services of your model company. -

Draw/design a sales magazine, advertising products. (package/pounds/kilograms/tons/boxes, etc), price, etc.

Include:

sale

measurements

Present your magazine to the class.

3.4.WRITING PRACTICE: Business cost of your model company Make up the cost for running your model company Take into account the expenses and costs studied.

4. Extension activities: the extension activities will help you improve your performance in the topics. You need to reach at least five hours of practice on your own. - For emphasis in the concept of fees go to https://www.eslfast.com/robot/topics/bank/bank12.htm - Practice listening comprehension about Spending money, expenses and loans at https://www.esl lab.com/money/moneyrd1.htm - To deepen your knowledge on percentage, visit: https://www.mbatious.com/topic/64/three concepts-inpercentage-to-tackle-quant To learn more about costing concepts visit: https://businessjargons.com/business-cost.html also visit: https://www.investopedia.com/ask/answers/041415/what-are-different-types-costs-cost accounting.asp English Learning Guide Competency 2 Unit 2: Maths Workshop 3