UNDERSTANDING MARKUPS (WEEK 4 LESSON)

WHAT IS MARKUP - is the difference between the selling price of an item and its cost.

HOW DO BUSINESS OWNERS SET THE SELLING PRICE - the price of goods that covers the cost, expenses, and the desired profit. 
the price that the reseller sell the goods to the consumer.

TYPES OF MARKUPS

1.Markup Based on Cost – when manufacturers keep their records in terms of cost.

2.Markup Based on Selling Price – when retailers keep their records in terms of selling price. It is also called as margin.

UNDERSTANDING MARKDOWN (WEEK 5 LESSON)

WHAT IS A MARKDOWN - It is a devaluation of a product. It is an attempt to sell something at a lower price than the original
plan/price.

PROFIT, BREAK-EVEN, OPERATING LOSS, AND ABSOLUTE LOSS

PROFIT - after applying markdown, selling price is greater than the sum of cost and expenses.

BREAK-EVEN - after applying markdown, selling price is equal to the sum of cost and expenses.

OPERATING LOSS - after applying markdown, selling price is less than the sum of cost and expenses.

ABSOLUTE LOSS - after applying markdown, selling price is NOT EVEN COVER the COST of the item.

UNDERSTANDING SALES COMMISSION (WEEK 6 LESSON)

WHAT IS A COMMISSION - The amount of money that an individual receives based on the level of sales he or she has obtained.

THREE TYPES OF COMMISSION

1.Straight Commission - When the rate of commission is an amount for each item sold, multiply the number of items sold.

2. Graduated Commission - Means the rate of commission increases as the rate of sales increases.

3. Commission Plus Override - When the commission sales made by other salesman.

COMPUTING INTEREST ON PERSONAL LOANS AND INSTALLMENT PURCHASES (WEEK 7 LESSON)

WHAT IS EFFECTIVE INTEREST - It is interest paid on the remaining balance of a loan after a monthly payment has been deducted. It
is interest paid on unpaid balance.

WHAT IS INSTALLMENT BUYING - When you take a loan, you receive the full amount of the loan (principal) for use, at least during
the first payment period. Thus, the principal used in the true annual interest formula is the same as the amount of the loan.

SALARIES AND WAGES / COMPUTING THE GROSS PAY (WEEK 7 LESSON)

WHO ARE THE EMPLOYEES - These are people who work for others.

WHO IS THE EMPLOYER - The person or company for whom an employee works.

WHAT IS A COMPENSATION OR INCOME - Refers to all forms of pay that go to the employees which arise from their employment.

WHAT IS A WAGE - is associated with employee compensation, computed on hourly, daily, or piece-work basis.

WHAT IS A SALARY - is associated with employee compensation, computed weekly, monthly, or annually.
WHAT IS A SALARIED EMPLOYEES - are employees who are paid their salary, which is the fixed amount of money for each time
period worked, such as week, month, or year.

HOW TO COMPUTE THE GROSS PAY – Gross Pay = Pay Per Period X Number of period worked

SALARIES AND WAGES / COMPUTING THE GROSS PAY CONTINUATION (WEEK 8 LESSON)

HOURLY WAGE - an employee who is paid by the hour works at an hourly rate, which is a certain amount of pay for each hour
worked.

HOW TO COMPUTE THE GROSS PAY FOR HOURLY WAGE - Gross pay = Rate Per Hour X Number Per hours worked

OVERTIME PAY - The payment for overtime services.

WHAT IS COMMISSION - The amount of money that an individual receives based on the level of sales he or she has obtained.

THREE TYPES OF WAGES BASED ON COMMISSION

1.Straight Commission - When the rate of commission is an amount for each item sold, multiply the number of items sold.

2.Salary Plus Commission - Some employees are given salary plus commission pay plan.

3.Salary Plus Bonus - Employees under the salary plus bonus plan are given fixed salary and bonus.

BUYING AND SELLING “COMPUTING THE NET PAY” (WEEK 9 LESSON)

WHAT IS NET PAY - The amount of pay that the employee gets after deductions are made.  The take home pay

WHAT ARE THE COMMON DEDUCTIONS MANDATED BY THE LAW

WITHHOLDING TAX - The most basic and fundamental deduction applied to the employee’s gross pay.  The installment payment of
the income tax for one year.

SSS CONTRIBUTION - All employees working in a private companies are automatically enlisted as members of the Social Security
System(SSS) and thus are required to pay their SSS contributions.

GSIS CONTRIBUTION - All government employees are being deducted a certain amount of Government Service Insurance System.

PHILHEALTH CONTRIBUTION - This a mandatory deduction applied to all private and government employees.

PAG-IBIG CONTRIBUTION - Another personal income deduction that is mandated by law is the Home Development Mutual Fund
(HMDF).

AMOUNT OF TAX TO BE DEDUCTED DEPENDS ON THE FOLLOWING:

GROSS PAY – refers to the total amount of income per payment period.

STATUS OF THE EMPLOYEE – refers to the civil status of the employee, whether single or married.

NUMBER OF DEPENDENTS – refers to the number of dependent children who are not more than 21 years old.

PAYROLL PERIOD – refers to the payment period, whether daily, weekly, semi-monthly, or monthly

ANALYSIS AND PRESENTATION OF BUSINESS

DATA (WEEK 9 LESSON)
VARIABLE - Measurable or recordable characteristics of an element.  Person  Place  Object

CLASSIFICATION OF VARIABLE

1. Quantitative Data - Numerical descriptions of the variable under consideration

2. Qualitative Data - Describe the variable in terms of its quality or categories

TEXTUAL FORM - Presented in paragraph or in sentence. Enumeration of

important characteristics. Emphasizing the most significant features.
Highlighting the most striking attributes of the set of the data.

TABULAR FORM - Very effective and efficient means of organizing and

summarizing data. A lot of information can be seen in one table. Makes
comparison of figures quick under each category.

GRAPHICAL FORM - Provides a visualization of the presented data. It can be

used to effectively communicate shapes and trends. Can be used in
emphasizing relationships across data. The easiest form to digest and has the
least clutter and the least precise form of data presentation.

GRAPHICAL FORM

1.Bar Graph - A bar graph is composed of discrete bars that represent different categories of data.

2.Histogram - The graph that uses bars to represent the frequency of numerical data that are organized into intervals. Since all the
intervals are equal and continuous, all the bars have the same width.

3.Time series/Line Graph - A type of graph used to show information that changes over time. We plot line graphs using several
points connected by lines.

4. Pie Graph - A type of graph that displays data in a circular graph. The pieces of the graph are proportional to the fraction of the
whole in each category.

5.Frequency Polygon - A graphical presentation for understanding the shapes of distributions. They serve the same purpose as
histograms, but are especially helpful in comparing multiple sets of data.

6.Pareto Chart - A simple bar chart that ranks related measures in decreasing order of occurrence. The principle was developed by
Vilfredo Pareto, an Italian economist and sociologist who conducted a study in Europe in the early 1900s on wealth and poverty.

GENERAL RULES FOR GRAPHICAL REPRESENTATION OF DATA

SUITABLE TITLE - make sure that the appropriate title is given to the graph which indicates the subject of the presentation.

MEASUREMENT UNIT - mention the measurement unit in the graph.

PROPER SCALE - to represent the data in an accurate manner, choose a proper scale.

INDEX - index the appropriate colors, shades, lines, and designs in the graphs for better understanding.

DATA SOURCES - include the source of information wherever it is necessary at the bottom of the graph.

KEEP IT SIMPLE - construct a graph in an easy way that everyone can understand.

NEAT - choose the correct size, fonts, colors etc. in such a way that the graph should be a visual aid for the presentation of
information.