Understanding revenue, costs, profit, and margin
FREE03 – People Professionals and Finance
This CIPD Level 0 video, part of the FREE03 – People Professionals and Finance unit, explores Understanding revenue, costs, profit, and margin to meet assessment criteria AC 1.1 on explaining key financial terms and statements used in organisations. The video breaks down essential concepts including profit and loss statements, balance sheets, and cash flow, whilst distinguishing between fixed and variable costs, capital and revenue spending, and introduces depreciation and working capital at an introductory level. By watching this learning resource, CIPD students will gain a foundational understanding of financial terminology and how these core concepts underpin organisational decision-making.
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: Understanding revenue, costs, profit, and margin
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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