Unit 1 - Area of Study 1: The role of accounting

Outcome 1

Describe the resources required to establish and operate a business, and select and use accounting reports and other information to discuss the success or otherwise of the business.

Examples of lear​ning activities

• Register and participate in the ASX Schools Share Market Game. This game is run online. You will receive a virtual $50,000 to invest over a 10-week period in 220+ companies listed on the Australian Stock Exchange. The prices you buy and sell at are identical to those in the live market. Therefore, this is as close to real-life share trading as you can get. The game can be played between March and May or between August and October.
• Conduct research on the ownership structure of a range of businesses. Describe the ownership structure of each one and explain the advantages and disadvantages of each structure identified.
• Prepare a visual representation (such as a concept map or a poster), depicting the factors that lead to the success or failure of a business.
• Prepare a visual representation depicting the accounting equation and the accounting elements it is comprised of (assets, liabilities, owner’s equity, revenues and expenses).
• Select a business that has decided to make itself more environmentally, socially or ethically responsible. Examples include: adopting a method to recycle resources, reducing packaging, adopting the Fairtrade model or using only socially responsible suppliers. Research and critically analyse the impact of this decision on the business; i.e. on its reputation and financial performance. This activity could be done via an interview with a small business owner or by listening to a guest speaker address the class.
• Visit a local business and interview the business owner. Explore the operations of the business and research the factors that have led to its success.
• Interview an accountant, a business advisor or a representative of a professional association. Prepare a presentation about the role of an accountant or financial advisor in a business enterprise.
• Working in small groups, research an Australian business. Gather information about its history, and past and recent performance. Evaluate the business information provided and prepare a group presentation. Each student in the group takes on a key role (such as accountant, business advisor, customer, proprietor) and offers their assessment of the business, its financial performance, its social performance and its commitment to ethical decision-making.
• Interview a business owner and discuss and determine the factors they consider when setting prices. Identify any ethical considerations involved in setting prices.
• In pairs, participate in the Lemonade Tycoon (online) game, making key decisions and keeping a journal of them and recording your success. Consider the resources that were required to establish and operate the business, and the factors that contributed to the overall success or failure of the business. Share your key findings.
• Compare a range of price-setting strategies. Present these in a table and provide examples of businesses that use each strategy.
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  Calculate a range of prices using different price-setting methods, such as recommended retail price, mark up and cost- volume- profit analysis.
• Use the article titled All-you-can-eat offer bankrupts Chinese hot pot restaurant in just two weeks to generate a class discussion about the importance of accurate price setting for a business.
• Calculate the breakeven point for a product, and then explain the impact that a change in a range of fixed and variable costs could have on the final selling price. For example, how might switching to recyclable packaging, sourcing key ingredients from sustainable sources, and changing to fixed costs (such as rent) affect the final price?
• Participate in the Foundation for Young Australians $20 Boss competition.
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  Discuss the topic of ethical considerations when making decisions in relation to operating a business.
• Using the Ethics Unwrapped website, investigate the Costco example. Explain why some businesses choose to pay their employees higher wages than others. Discuss how the increased expense is outweighed by other benefits.
• Watch the program War on Waste on ABC iview. Use the issues presented as a starting point for class discussion about the environment as they relate to business ethics.