Investigating business resources

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                                    Unit 2 Introduction In this report I’m going to be describing the reasons why costs and budgets need to be controlled. Then also analyse the reasons why costs and budgets need to be controlled and explain in detail problems that can arise if they’re left unmonitored and also evaluate how managing resources and controlling budgets can improve the performance of a business. For any company the money that comes in must be more than what goes out, It’s very important for costs to be controlled against budgets so that you don’t overspend and make a loss. The costs that have to be managed are fixed costs & variable costs. A fixed cost is something that cannot be changed for example renting, salaries, loan payments etc, these cannot be changed so what ever a business is doing they’ve got to make sure the money they make meets up with the fixed costs other wise they would be making losses that would end up giving them a bad reputation and
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even worse end up having to close down. Variable costs are things such as staff wages, gas bills, electric bills, things that can be controlled without affecting the company in a bad way depending on how disciplined they are. Mobile phone companies are very interesting as they have an opportunity to make a lot of money depending on how well presented they are and what they can offer for example you have a company like Nokia, they are a very successful Finish company that makes mobile phones, they distribute them to different phone networks such as orange, o2, T-mobile, Vodafone, ...

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