Types of costs, expenditure, and working capital
FREE03 – People Professionals and Finance
This CIPD Level 0 learning video for FREE03 – People Professionals and Finance covers essential financial terminology and concepts that HR professionals need to understand, specifically focusing on types of costs, expenditure, and working capital. The video explores how organisations differentiate between fixed and variable costs, capital versus revenue expenditure, and introduces key financial statements including the profit and loss account, balance sheet, and cash flow statement. You'll gain practical knowledge of financial terms such as revenue, costs, profit, and margin, alongside high-level insights into depreciation and working capital management. By watching this video, you'll develop the foundational financial literacy required to meet assessment criteria AC 1.1 and support informed HR decision-making in your organisation.
Assessment Criteria 1.1
Explain key financial terms and statements used in organisations.
Indicative Content
To include: profit and loss (income statement), balance sheet, cash flow; revenue, costs, profit, margin; fixed vs variable costs; capital vs revenue spend; depreciation (high level); working capital (high level).
What You'll Learn
Video covering: Types of costs, expenditure, and working capital
About FREE03 – People Professionals and Finance
To develop learners’ understanding of essential finance concepts in business and how people professionals use financial insight to support workforce decisions, budgets and organisational performance.
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