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Money Bag

Unit 3 - Finance & accounts

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Chart Increasing

Unit 1 - Introduction To Business Management

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Briefcase

Unit 2 - Human Resource Management

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Direct Hit

Unit 4 - Marketing

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Factory

Unit 5 - Operations management

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Bar-Chart

Unit 6 - Assessment

🎉 Let&#39;s Talk Money! But not the kind you use to buy ice cream... We&#39;re diving into the world of business expenditure! 🍦🎉

<ul>
	<li>Definition: The moolah 💰 you splash out to buy long-term stuff for your business.</li>
	<li>Examples: 🚜 machinery, 🌲 land, 🏭 buildings, 🚗 vehicles, and 🖥️ equipment.</li>
	<li>Real-World Connection: Imagine buying a fancy robot that makes cookies 🍪. That&#39;s a long-term investment that will keep producing cookies for years! That&rsquo;s a CAPEX!</li>
</ul>

<ul>
	<li>Definition: The cash 💸 you spend regularly to keep the business running smoothly day by day.</li>
	<li>Examples: 🏢 rent, 💼 wages, 🌾 raw materials, 🛡️ insurance, and ⛽ fuel.</li>
	<li>Real-World Connection: Think about buying the dough, chocolate chips, and paying the baker to make those cookies. These are daily costs to make sure the cookies keep coming! That&rsquo;s an OPEX!</li>
</ul>

<ul>
	<li>Peter&#39;s been helping farmers for 15+ years.</li>
	<li>He&rsquo;s the CAPEX guy, helping farmers decide on big purchases for the long-run.</li>
	<li>Now, he&#39;s turning his attention to OPEX too, focusing on daily costs like wages and fertilizers.</li>
</ul>

<ul>
	<li>Holistic Growth: By balancing both, farmers can ensure they have the right equipment AND can afford to use them daily.</li>
	<li>Sustainable Farming: Tracking OPEX (like fertilizer costs) means farmers can keep their plants 🌱 happy without breaking the bank.</li>
	<li>Predictable Profits: With a grip on both expenditures, farmers can predict costs better and plan for profits! 📈</li>
</ul>

Question: Why would understanding both capital and revenue expenditure be a game-changer for farmers in South-East Asia?

Answer: Farmers in South-East Asia can unlock their farm&#39;s full potential by understanding both CAPEX and OPEX. With CAPEX, they invest in assets that boost productivity for years (like high-yield machinery). On the other hand, grasping OPEX helps in managing daily costs, ensuring sustainability. This balanced approach could mean more crops, better profits, and happier farmers! 🌾🌟

<ul>
	<li>CAPEX = Long-term investments (Think of the robot cookie maker 🤖🍪)</li>
	<li>OPEX = Daily running costs (Think dough, chips, and the baker&#39;s wages 💰👩&zwj;🍳)</li>
	<li>Both are crucial for growth and profitability!</li>
</ul>

Now, go rock that Business Management exam! 🚀📚🌟

Unit 3 - Finance & accounts

Capital Vs. Revenue Expenditure: Key To Asian Farmers' Success

Table of content

Capital expenditure (CAPEX) 🏢

Revenue expenditure (OPEX) 🛒

Peter dee's agric - adventure in south - east asia! 🐄

Unlock the Full Content!

Unit 3 - Finance & accounts

Capital Vs. Revenue Expenditure: Key To Asian Farmers' Success

Table of content

Capital expenditure (CAPEX) 🏢

Revenue expenditure (OPEX) 🛒

Peter dee's agric - adventure in south - east asia! 🐄

Unlock the Full Content!