DAY THREE OF FINANCIAL LITERACY TRAINING FOCUSES ON UNDERSTANDING BUSINESS COSTS

Reported by: S. Ernest.
Date: 19th February, 2025.
Lusaka, Zambia.

The Government of Zambia, through the Citizens Economic Empowerment Commission (CEEC), continues its commitment to strengthening the financial management capabilities of small and medium enterprises (SMEs) in Lusaka Province.

On the third day of the intensive financial literacy training program, conducted in partnership with the Association of Chartered Certified Accountants (ACCA), participants are diving deeper into one of the most critical aspects of business—understanding and managing costs effectively.

Breaking Down Business Costs

A strong grasp of business costs is essential for SMEs to achieve profitability and sustainability. The training session categorizes costs into two primary types:

1. Production Costs

These are the direct expenses incurred in the manufacturing or delivery of goods and services. They include:

Material Costs – The raw materials required to produce goods.

Labor Costs – The wages and benefits paid to employees directly involved in production.

2. Non-Production Costs

These expenses are not directly tied to the production process but still impact overall business operations. They include:

Overhead Expenses – Fixed and variable costs such as rent, utilities, and office supplies.

Indirect Costs – Expenses that support business functions, such as administrative salaries, marketing, and research and development.

This training initiative, funded by the New Dawn Government, underscores Zambia’s dedication to fostering an inclusive economic environment.

By providing financial literacy education at no cost, the government is equipping SMEs with the knowledge needed to make sound financial decisions, optimize costs, and enhance their business strategies.

As the training progresses, participants are expected to gain invaluable insights that will enable them to navigate financial challenges, improve operational efficiency, and build sustainable enterprises that contribute meaningfully to Zambia’s economic growth.

The Agency