NIOS OER Project

OER Frame work

Name of OER Developer: Anand Gosavi Institution- Vigyan Ashram Pabal E mail vapabal.dbrt@gmail.com 02138 292326 Course Rural Technology Subject- Engineering Mobile No. 9960865463 StandardTel. No.

Concept and Concept map:

Content outline

it happens many time when in market

1 ) Customer- What is a cost of this basket?

2) Seller 50 rupees

4) Seller No no the production

cost of the basket is more than 40 rupees

3) CustomerGive me it in 30 Rupees

5) Customer- Then keeps it I dont have that much budget

Exchanges of goods and services with money are happening in every business. An entrepreneur must be aware, if he is making profit or loss. Maintaining accounts of all transaction is very much important in daily business. It is also required for audit and Govt. taxation purpose. Banks needs audited information while evaluating loan proposals. Therefore it is very much important to learn about accounts to become successful.

Objective

After going through this unit , the learner will be able to: 1. Prepare an Estimate 2. Prepare a budget 3. Maintain cash-flow statement

Activities to be performed by learner with this OER

Prepare a costing of a Coconut Peeler Prepare a cash flow statement for poultry having 500 birds

Introduction
Every business from the small companies, big companies, organizations or governments are maintaining accounts and through the accounts they are estimating their budgets for the next year. The budget is the soul of every business. Our state / central government also declared a budget for every year. Our mother and father also prepare a budget for next week / month / year. We are also estimating time for our study.

Mini Activity - On the day of your birthday you want to give a party for all your friends so you have asked your mother to prepare poha for ten people. She has agrees to make poha but on this condition: You must prepare a list of materials for cooking the poha, agree the price rates with the market and then calculate the budget for the party. PowerPoint Link

Please click here for viewing PowerPoint presentation on types of budgeting

From this slide, the learner will be able to know following things Types of Budgeting Estimation Quotation Cash Flow

Activity 2 Your mother is going to purchase vegetables from the market you want to go with her but she put a condition that first you prepare a Estimate which vegetables your family need for a week, so prepare a estimate with the help of your mother .

Quotation Activity Activity 4: -Given below are 2 quotations for computers. I want to buy a computer. I got two quotations from two different shops as shown below .Please suggest me which is the cheaper quotation out of the both Quotation A Quotation B

ANAND COPUTER AGENCY PABAL, Tal. Shirur, Dist - Pune 412403, Phone - 9960865463

QUOTATION

SAI COPUTER SURVICE Shirur, Dist - Pune 412441, Phone - 8986088685

QUOTATION

To, To, Mr.Rajendra Dengale Nimgaon Jali, Sanganer P.O. Date P.O. Date Requisitioner Shipped VIA F.O.B. Point Terms Mr.Rajendra Dengale Nimgaon Jali, Sanganer

Requisitioner

Shipped VIA F.O.B. Point Terms

Qty

Unit

Description

Unit Price

Total

Qty

Unit

Description

Unit Price

Total

P-IV COMPUTER WITH 2.6GHZ INTEL PROCESSOR MOTHERBOARD, 1GB RAM, 160GB HARD DISK,ATX CABINET, KEYBOARD , MOUSE, 15" MONITOR ,CD ROM

16500.00

16500.00

P-IV COMPUTER WITH 2.6GHZ INTEL PROCESSOR MOTHERBOARD, 2GB RAM, 250 GB HARD DISK,ATX CABINET, KEYBOARD , MOUSE, 19" MONITOR ,CD ROM

17500.00

17500.00

SHIPING COST EXTRA IF APPLICABLE

SHIPING COST EXTRA IF APPLICABLE PER UNIT SUB TOTAL SALES TAX SHIPING OTHER TOTAL 16500.00 AUTHORIZED BY Date 16500 0.00 0.00 0.00

PER UNIT SUB TOTAL SALES TAX SHIPING OTHER TOTAL 17500.00 17500 0.00 0.00 0.00

AUTHORIZED BY

Date

Which is a cheaper quotation?

A NOTE

or

At the time of study of Quotation we should be focus on not only the cost but also you should check the specification of product.

Question When is estimation given to customer and when is the quotation given to customer?

Examples of Cash flow statement Powerpoint links Please click here for the PowerPoint link for cashflow example

This slideshow demonstrates a simple cashflow statement through a example of making pickles

Assignment
Considering this case, prepare a cash flow statement for the following case Case of a poultry where a owner is given order two months in advance 1. If an order of a batch of Broiler birds is given 2 months in advance then only the fulfillment is assured and full payment needs to be done at the time of booking. 2. The sale amount is received within 15 days from the day of sale. 3. The order for the Poultry food is to be given 15 days in advance. 4. Medicines and cages are available immediately. Hence, the owner prepared a Cash Flow Statement as follows table 1 Month November December Cage purchase 2000.00 Food - 1280.00 January Medicine - 200.00 Bird of batch 2 540.00 Received batch 1 Revenue Balance Initial investment 5000.00 5000.00 - 540.00 4460.00 - 3280.00 = 1180.00 - 740.00 Sold batch 1 440.00 - 1280.00 = Food - 1280 February

Expenses

Order for Birds 540.00

= ???

???

= ???

???

From the statement given above, perform the calculation in balances and determine which month the poultry owner gained profit

Costing
Costing is calculation of actual production expenses and revenues of a certain task . A CostBenefit Ratio is calculated to study whether the benefit is sufficient with respect to the Cost of the product or service. The overall costing includes 1. Pre-production expenses (Marketing Survey, advertisement etc.), 2. The production expenses (from raw material purchase to packing of finished product, depreciation of assets, running expenses etc.) , 3. Expenditure for Sale of the product (inclu. VAT or other taxes, advertisement, commissions, transportation etc.), 4. Profit (Manufacturer - 10%, Distributor - 1% -5%, Wholesaler - 10% -15%, Retailer 10% -20%)

Exercise - Have you completed the practical of welding? Now we wants to fabricate a table as per the following drawing, first Prepare a budget for making a Coconut Peeler, as per the contemporary rates.

Students Will going through the PPT of Costing and then they doing the exercise

Powerpoint Presentation of Costing

Please click here for PowerPoint presentation on costing

Additional links and Activity After completing the Activity you can refer this link The above link demonstrates a classroom table preparation. Please refer the costing part of this activity

How to make Profit & loss Statement

Balance sheet shows health of the organization. Income statement also called as profit and loss statement (P&L), gives company's financial statement for particular period. This shows if the organization has made profit or loss during particular period. Amount spend on fixed assets is not shown in the P&L statement. But interest on the capital invested is shown in the P&L statement. PowerPoint Presentation of profit and loss example Please click here to view the presentation demonstrating profit and loss in an simple example Activity to do for learner :- At the end of the PowerPoint slide, there is an assignment given

Summary of the chapter Estimation is given by the seller when the customer has not made mind for purchasing Quotation is a time bound and surety of the price for customer as well as the seller.Quotation is based on estimation and it helps customer select best option Cashflow statement is a schedule showing cash received and cash paid at any particular instant of time Costing is the calculation of exact production expenses and revenues of a particular task Balance sheet shows whether the company has made profit or loss in a particular period

After completing these topic students will be prepare Profit loss statement of coconut peeler

Activity Visit to poultry shed and understand how the farmer keep poultry record. Then give him suggestion for keeping better record if any

Disclaimer:
The content displayed in the presentation is made for students, teachers and volunteers of Vigyan Ashram for learning Rural Technologies. They have made extensive use of web resources while making the presentation .They are instructed to use open source content on the website

Material shared is for educational purpose and no commercial transaction is involved Vigyan Ashram is not responsible for any omission or misrepresentation of information. We will be happy to do correction if it is brought to our notice.