MAA103 Lecture Notes - Lecture 3: Activity-Based Costing, Indirect Costs, Variable Cost
Document Summary
A written document that explains and analyses an existing or proposed business venture. A business plan helps to visualise and organize the business and its operations. Can be applied to any type of enterprise regardless of the size. Covey the credibility of business to the reader. Act as an organizing tool that can help to sell the owners idea and convert it into a reality. Provides a clear statement of direction and purpose of firm. Provides a suitable means of periodically evaluating the performance of the firm. Foster the most effective use of scarce resources; staff, time, money. Ensures the entrepreneur has adequately researched the business idea. Sometimes high level of planning may reduce the flexibility and room to move, rather than enhance it. Business planning can be time consuming and expensive. The main issues dealt with in all business plans can be broadly grouped into those relating to marketing, operations and finance.
