DIPLOMA IN MARINE SURVEYING 2012 / 2013 MODULE 2 Budgeting and Accounting for Surveyors AUTHOR Nigel Smith, FCA FCCA Partner The Financial & Management Training Consultancy, UK Lloyd's and the Lloyd's crest are the registered trademarks of the society incorporated by the Lloyd's Act 1871 by the name of ‘Lloyd's’CONTENTS Page No. GENERAL INTRODUCTION 4 1 INTRODUCTION TO FINANCE 6 1.1 Introduction to Finances in Marine Surveying . . . . . . . . . . . . . . XXXXXXXXXX6 1.2 The Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX7 1.3 Profit and Loss Account (Income Statement) . . . . . . . . . . . . . . XXXXXXXXXX11 1.4 The Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX13 1.5 Employment of Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX20 1.6 Cash Flow Forecasts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX26 1.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX29 2 COSTING IN A MARINE SURVEYING BUSINESS 30 2.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX30 2.2 Costing Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX30 2.3 Total Costing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX31 2.4 Job Costing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX32 2.5 Labour Costing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX32 2.6 Overheads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . XXXXXXXXXX35 2.7 Allocation of Overheads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....