Manage Budgets And Financial Plans Assignment Help


BSBFIM501 Manage Budgets And Financial Plans

BSBFIM501 – Assessment

Unit Details:BSBFIM501 Manage budgets and financial plans
Prerequisite Units:Nil
Possible
Co-Requisite Units:
Nil
Assessment Type:This is a summative assessment, which requires each student to have adequate practice prior to undertaking this assessment.
Unit Summary:This unit describes the performance outcomes, skills and knowledge required to undertake financial management within a work team in an organisation. This includes planning and implementing financial management approaches, supporting team members whose role involves aspects of financial operations, monitoring and controlling finances, and reviewing and evaluating effectiveness of financial management processes in line with the financial objectives of the work team and the organisation.

This unit addresses the requirement for managers to ensure that financial resources are used effectively. This is done by ensuring access to budget/s and ongoing monitoring expenditure against the budget/s.

The unit applies to managers working in small and large business environments and not for profit organisations.

Assessment MethodsProjectsAssessment 1

(Prepare annual budget for business)

Assessment 2

(Meeting report)

Assessment 3

(Compare and revise budget)

Written Assessment or ProjectAssessment 4

(Written Assessment  /  Project)

Online AssessmentAssessment 5

(Online Quiz)

Due Date:29/09/2017

Important notice to students:

  1. Students must submit assessments by due dates; otherwise, they will incur a fine of $50.00.per Unit (if submitted within one week after the due date) followed by $100.00 per Unit (if submitted within two weeks after the due date) and $150.00 per Unit (if submitted within one month after the due date). If you don’t submit assessments even by one month, or do not pay fines, HIBT may report to DIBP as against non-completion of assessments and non-payment of fees and fines, and it may affect your student visa.
  1. Plagiarism is not accepted in Australian education system and at HIBT. You should not practice any plagiarism in your assessments or any other works. If you are found to practice plagiarism, or your assessment has been found to be plagiarised, you will be fined $250 (for first time) followed by $500 (for second time) and $1000 (for third time). If you are still found to be plagiarised after the third time, HIBT will report to DIBP as against plagiarism and it may affect your student visa.

ASSESSMENT SUMMARY / COVER SHEET

This form is to be completed by the assessor and used as a final record of student competency.

All student submissions including any associated checklists (outlined below) are to be attached to this cover sheet before placing on the students file.

Student results are not to be entered onto the Student Management Database unless all relevant paperwork is completed and attached to this form.

 

Student Name:
Student ID No:
Final Completion Date:

 

Unit Code:BSBFIM501
Unit Title:Manage budgets and financial plans

 

Please attach the following documentation to this formResult

S = Satisfactory

NS = Not Satisfactory

NA = Not Assessed

Reassessment

S = Satisfactory

NS = Not Satisfactory

NA = Not Assessed

Assessment 1q  Annual budget attached

q  Checklist attached

S  |  NS  |  NAS  |  NS  |  NA
Assessment 2q  Meeting report

q  Checklist attached

S  |  NS  |  NAS  |  NS  |  NA
Assessment 3q  Revised budget attached

q  Budget assessment report attached

q  Feasibility report attached

q  Checklist attached

S  |  NS  |  NAS  |  NS  |  NA
Assessment 4q  Written Assessment  /  Project attachedS  |  NS  |  NAS  |  NS  |  NA
Assessment 5q  Online AssessmentS  |  NS  |  NAS  |  NS  |  NA
Final Assessment Result for this unitC  /  NYC

Assessor notes over page:

Student Declaration:  I declare that I have been assessed in this unit, and I have been advised of my result.  I also am aware of my appeal rights.

Name:          _________________________________

Signature:    _________________________________

Date:           ____/_____/_____

Assessor Declaration:  I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback

Name:          ____________________________

Signature:    ____________________________

Date:           ____/_____/_____

 

Administrative use only
Entered onto Student Management Databaseq  __________________
Date
_______________
Initials

ASSESSMENT 1 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

For this assessment, you are required to prepare an annual budget for a business of your choice.  Students may liaise with their supervisor when choosing a business or may utilise the example of Appendix 1.

Task: Taking into account previous years figures, available current year figures and any additional information, you are to create an annual budget for your chosen business.

  • Undertake discussions with stakeholders (Your instructor will role play these parts) to determine budget objectives and set milestones and / or performance indicators
  • Discuss and review assumptions and budget parameters – review these during the budget process as needed. (Some assumptions are included in Appendix 1 Anzel Boutiqe).
  • Clearly details any Cash, expenditure and revenue items
  • Ensure your budget objectives are clear & conform with the business’ expectations
  • Include milestones and performance indicators to monitor financial performance
  • Include a detailed breakdown of your annual budget into seasonal periods as required by the business
  • Identify any financial risks and incorporate protection strategies according to business
  • Include contingency plans for budget blow-outs or changes
  • Include a monitoring process to monitor implementation of budget

Details: Students should keep the following points in mind when creating the budget

  • Set profit targets/goals to reflect the business’ (or Anzel Boutique’s) returns
  • Identify the non-current asset requirements and consider alternative asset management strategies
  • Prepare cash flow projections to enable business operation in accordance with business plan and legal requirements
  • Select budget targets to enable ongoing monitoring of financial performance
  • Relevant taxes such as GST and BAS should also be included.

Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget.  Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures.  Any liaison with the proprietor of the business to determine milestones, policies, goals etc. should be carried out with your instructor, who will role play the relevant parts.

Once completed, you are to present your annual budget to your supervisor (your assessor) for approval

Assessment Summary

You are to submit the following evidence / perform the following tasks

  • Develop and submit your annual budget as outlined above

This assessment is due on: _

ASSESSMENT 2 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

Following Assessment 1, you are to prepare for and implement your budget part.

Your implementation will encompass running a meeting for your team in which you:

  • Explain and discuss the budget in detail
  • Explain how your budget will be implemented
  • Explain how your budget will be monitored
  • Allocate responsibilities for at least 2 different budget components
  • Instruct / mentor each person to whom you have allocated a responsibility to, to ensure they understand and are empowered to perform their allocated task

It is important that you are prepared for this session, ensuring you:

  • prepare for the session to ensure everything is covered
  • develop and provide relevant documentation / supporting materials to your team

Your assessor will observe you running the meeting.

Meeting Context

  • Each meeting will consist of yourself (running the meeting), and at least 2 other people, who will role-play the employees.  Other people may include trainers or students from your course

Things to consider whilst performing this task:

  • Be organised – prepare and plan for the session thoroughly.
  • Know your budget thoroughly
  • Arrange access to all required documentation for this process
  • Be prepared to ask questions
  • Be prepared to be asked questions

Things to consider whilst role-playing an employee:

  • Be prepared
  • Act professionally throughout the process
  • Be prepared to ask questions when you require more information
  • Answer all questions to the best of your ability
  • Make sure that by the end of the session, you are fully aware of the strategy you have been allocated, along with the actions you would need to perform to achieve this.

Remember, you will be required to both run the meeting, and role-play an employee (during another students assessment), so be sure to perform at your best at all times.

Assessment Summary

You are to submit the following

  • Your meeting plan
  • Copies of documentation provided to employees
  • Your assessor will observe you running the meeting

This task will be assessed on: _

ASSESSMENT 3 – STUDENT INFORMATION

This information is to be handed to each student to outline the assessment requirements

For this assessment, you are to interview your assessor and gather the required data to review the implementation of your budget.  To perform this task satisfactorily, you must be prepared, as your assessor will only provide you with answers to questions asked.

In performing this task, you should:

  • Consider your budget plan developed in Assessment 1.
  • Identify the type of information required to determine the effectiveness of each KPI
  • Assess the profitability and productivity outcomes of budget as per Appendix 2.
  • Identify areas of underperformance
  • Identify improvements that are appropriate to ensure the viability of the budget

Once you have gathered this information, you are to provide a written report that:

  • comments on the effectiveness of the plans implementation
  • reviews the financial outcome (in terms of viability, profitability and productivity) of each part of the budget
  • outlines the areas of underperformance, along with recommendations for improvements
  • includes an amended version of your budget, with the changes highlighted
  • outlines in detail how the changes will be implemented

Your report should also include:

  • A detailed comparison of budgeted forecasts and actual figures for the 3 month period – including comparison trends and other graphs as required demonstrating the information clearly including validity of analysis.
  • An analyse the budget variances
  • A recommendation to Anzel Boutique regarding his business’ performances and
  • A reviewed budget taking into account the latest figures.  Anzel Boutique’s goals are skill the same – is he on track? If not, what needs to be dome for Anzel Boutique business to get back on track? Are her goals too unrealistic? Complete a feasibility report answering these questions.

Assessment Summary

You are to submit the following

  • A detailed report to give to Proprietor of Anzel Boutique (instructor) with your recommendations and covering the above points.

This assessment is due on: __

ASSESSMENT 4 – WRITTEN ASSESSMENT / PROJECT

Student ID No:          _________________________________________   Date: _

Student Instructions

Written AssessmentProject
 

·          This assessment will be undertaken in the classroom, under test conditions.

·          This is a closed book written assessment

·          Time allocated: 2 hours

 

·          You are to research and answer all of the following questions.  Be sure to:

·          Please print / write legibly

·          Make sure you all questions

·          Black or blue pen is required to complete this assessment.

·          Return your assessment by the date set by your assessor

·          Do not plagiarise.  Plagiarism is considered cheating. Please refer below for our policy in regards to cheating.

·          Do not cheat during this assessment.  Anyone caught cheating will automatically be excluded under the Disciplinary Rules and their opportunity for assessment will be subject to the outcome of an Appeal Process or  Disciplinary Hearing

·          Ask your assessor if you do not understand a question.  Whist your assessor cannot tell you the answer, he/she may be able to re-word the question for you

·          Reasonable adjustment: If you require any adjustments to accommodate a need in order to complete this assessment, please talk to your assessor.  Arrangements will be put in place to ensure a fair and flexible approach is undertaken for this assessment.  Please note that the range or nature of the adjustment will ensure that the outcomes of the unit are not compromised.

·          Re-assessment: If you do not achieve the required standard, you will be given the opportunity to be re-assessed by our Assessor. Arrangements will be made on an individual basis.

·          Feedback:  Your assessor will provide feedback to students after the completion of the assessment.   The trainer assessor will explain the appeals process.

 

Questions
1What is Accrual Accounting?
2What is the difference between single and double entry accounting?
3List the 5 types of accounts which underpin double entry bookkeeping.
4Describe what is included in each of the following reports:
Profit and Loss
Balance Sheet
Statement of Changes in Equity
6List and explain 5 different financial records that a company must keep.
7Describe the following accounting principles.
Doctrine of Consistency
Doctrine of Disclosure
Doctrine of Materiality
Doctrine of Conservatism
8Outline the calculation method used to determine the following profitability returns ratios.
Operating return on assets
Return on assets
Return on total capital
9Pedro’s Pasta purchases a car for $8,800 using a loan from the bank suppler.  Referring to double entry accounting, what are the two effects of action?   Show how you would record the transaction in the ledger.
10Describe the budget creation steps that are in most company budgeting procedures.
11Outline 9 different expenditure and revenue items that are relevant to budgeting and forecasting.
12What are the key purposes / objectives of forecasts?
13Describe the process you would use to maintain the integrity of electronic financial spreadsheets.
14What is cash flow and how does it affect the operations of a business?
15What is normally included in a cash flow forecast for forward periods?
16Provide a brief explanation of the following taxation laws.
Wine equalisation tax
Luxury car tax
Fuel tax
GST
17Explain the difference between cash and accrual reporting for a business.
19What legislation covers Income Tax?
20What sort of records should be kept according the Taxation Administration Act 2005?   How long these records must be kept for?
21List 5 possible prosecutable acts when lodging a tax return under the Taxation Administration Act 2005.
22What is the purpose of the Income Tax Assessment Act 1997?
Student Declaration:  I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source.Name:          ________________________

Signature:    ________________________

Date:           ____/_____/_____

ASSESSOR USE ONLY

Comments

Assessment Method:   WRITTEN   /   PROJECT

Result

(Please Circle)

CompetentNot Yet CompetentIncomplete
Assessor:  I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedbackName:          ________________________

Signature:    ________________________

Date:

ASSESSMENT 5 – Online Assessment

Please read the assessment requirements below

Online Assessment Quiz

You will be able to access this online for this unit, you need to talk to your facilitator/teacher on how to access this resource.

This assessment is due on: __

Anzel Boutique Pty.Ltd. is owned by two couple Mr. Max Adam and Mrs. Maria Zulian with the experience CEO Mr. Jam Colngford who is management specialist. The company sells a variety of boutique items within Australian market where the company has to follows the Australian Tax Office rules and regulation if the turnover beyond the threshold such as GST registration, BAS preparation etc. The company has different internal and stakeholders such as shareholder, suppliers, staff, government regulatory bodies. The company has the policy to meet its financial objectives through the meeting of the following ratio as under:

Current ratio                                                    2

Account receivable turnover ratio                  6%

Account payable turnover ratio                      30%

Operating return on Assets                             18%

Retained earning to Total Assets ratio            25%

Return on Equity ratio                                     10%

The company has policy to utilize monthly master budget at least six month in advance of the budget year for the purpose of planning and controlling. The company has assumed fiscal year as from January 1 to December end.

During the winter of 2007, proprietor spent considerable time with Mr. Jam for the preparation of budget (from January to December end 2008). The context was turned in different situation that Mr. Jam took annual leave for one month and decided to go the Las Vegas, Nevada, USA for two months. Immediately after the departure of Mr.Jam, Mr.Max Adam withdraw his share from the company and separated from Mrs.Zulian. Mrs. Zualian had belief that the marriage wouldn’t last and one day Mr.Adam will be back with her. But the end of the year is quickly approaching and she didn’t get any response from Mr.Adam. Then Mrs.Zualian has got trouble to work on the budget because she didn’t have accounting knowledge. So she contacted to CEO in Las Vegas and send all the predication and company records for the preparation of master budget for 2008. The company records have revealed the following information.

The details of accounting information and prediction was as follows:

  • For the year ended December 31, 2007: 475,000 units at $10.00 each (Actual data)
  • For the year ended December 31, 2008: 500,000 units at $10.00 each
  • For the year ended December 31, 2009: 500,000 units at $10.00 each

*Expected sales for the year ended December 31, 2007 are based on actual sales to date and budgeted sales for the duration of the year.

  1. The sales is expected to be high in gift giving holiday such as Valentine days in February, Easter in April and Christmas in December. The past records shows that sales in February and April will be account to 5% and 10% to total sales respectively. Sales pick up over the summer with July, August and September each contributing 2% to the total. With the starting of Christmas shopping, sales trend start to increase 15% in October, move to 20% in November and peak to 40% in December. The rest months are the slowest month and sales account only 1% of total sales. This pattern of sales is not expected to change in the next two years.
  1. Sales are on a credit basis, with 55% collected during the month of the sale, 35% the following month, and 9.5% the month thereafter. ½ of 1% of sales are considered uncollectible (bad debt expense).
  1. Sales in November and December 2007 are expected to be $700,000 and $1,500,000 respectively. Based on the above collection pattern this will result in Accounts Receivable of $734,000 at December 31, 2007 which will be collected in January and February, 2008.
  1. To maintain the market demand, the inventory management department has the policy to maintain ending inventory 25% of next month sales.
  1. Because the nature of the product, sales are seasonal so the company need to maintain additional storage facility from September to December with $20,000 per month as storage cost payable at the beginning of the month.
  1. The company is using only one type of material Zoom Wood Dust (ZWD) in the production of boutique items. The material is a very compact material that is purchased in powder form. Each unit of Boutique requires 5 kilograms of ZWD, at a cost of $0.45 per kilogram. The procurement policy shows the procurement manager need to maintain inventory of raw material equal to 40% of the following month’s production needs as a precaution against stock-outs.  The historical payment for raw material shows that the company is paying 20% of a month’s purchases in the month of purchase, 45% in the following month and the remaining 35% two months after the month of purchase. There is no early payment discount.
  1. The opening account payable will consist of $208,406.50 arising from the following estimated direct material purchases for November and December of 2007:

ZWD purchases in November 2007:       $223,875.00

ZWD purchases in December 2007        $162,563.50

  1. Manufacturing process of the company is highly automated, which lead to low labour cost. Employee’s wages are based on a per unit basis. Their total pay each month is, therefore, dependent on production volumes and averages $9.00 per hour. This rate includes employee benefit. All payroll costs are paid in the period in which they are incurred.

Each unit spends a total of 30 minutes in production.

  1. Due to the similarity of the equipment in each of the production stages and the company’s concentration on a single product, manufacturing overhead is allocated based on volume (i.e. the units produced). The unit variable overhead manufacturing rate is $1.30, consisting of:  Utilities–$0.60; Indirect Materials–$0.20; Plant maintenance–$0.30; environmental fee–$0.14; and Other–$0.06.
  1. The fixed manufacturing overhead costs for the entire year are as follows:

Training and development                   $   43,200

Property and business taxes                    39,000

Supervisor’s salary                                 149,400

Amortization on equipment                    178,800

Insurance                                                  96,000

Other                                                      117,600

$ 624,000

  • The property and business taxes are paid on June 30 of each year. The expected payment for next year is $39,600.
  • The annual insurance premium is paid at the beginning of September each year. There should be no change in the premium from last year.
  • All other “cash-related” fixed manufacturing overhead costs are incurred evenly over the year and paid as incurred.
  • The company uses the straight line method of amortization.
  1. Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed. Previous year’s experience has provided the following information:

Lowest level of sales:      375,000 units     Total Operating Expenses: $778,710

Highest level of sales:     750,000 units     Total Operating Expenses: $1,022,460

These costs are paid in the month in which they occur.  Not included in the above expenses is bad debt expense.

  1. During the fiscal year ended December 31, 2008, the company will be required to make monthly income tax instalment payments of $5,000. Outstanding income taxes from the year ended December 31, 2007 must be paid in April 2008. Income tax expense is estimated to be 25% of net income.  Income taxes for the year ended December 31, 2008, in excess of instalment payments, will be paid in April, 2009.
  2. The company is planning to acquire additional manufacturing equipment for $204,300 cash. 40% of this amount is to be paid in November 2008, the rest, in December 2008. The manufacturing overhead costs shown above already include the amortization on this equipment.
  1. An arrangement has been made with the local bank that if the company maintains a minimum balance of $20,000 in their bank account, they will be given a line of credit at a preferred rate of 6% per annum. All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month.  All borrowings and repayments from the bank should be in multiples of $1,000 and interest must be paid at the end of each month.  Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month.
  1. The company has a policy of paying dividends at the end of each quarter. The president tells you that the board of directors is planning on continuing their policy of declaring dividends of $50,000 per quarter.
  1. A listing of the estimated balances in the company’s ledger accounts as of December 31, 2007 is given below:

Assets

Cash                                                                                                   $     83,365

Accounts receivable 734,000

Inventory-raw materials                                              9,000

Inventory-finished goods                                            9,125

Prepaid Insurance                                                     64,000

Prepaid property and business taxes                       19,200

Capital assets (net)                                                 724,000

Total assets                                                        $1,642,690

Liabilities and Shareholders’ Equity

Accounts payable     $   208,407

Income taxes payable                                              21,500

Capital stock 1,000,000

Retained Earnings                                                  412,783

Total liabilities and shareholders’ equity             $1,642,690

Appendix 2

At the end of Dec 2008, the business actual result is as follows.

Sales                                                  $4,750,000.00

Direct material cost              $1,120,000.00

Direct labour cost                             $1,400,000.00

Cost of goods sold                           $4000, 000.00

Selling and Administration exp     $940,000.00

Interest expenses                            $6,000

Income tax                                         $70,000

The following table shows the three-month actual result.

Year 2008
OctoberNovemberDecember
Sales$ 700,000$1,100,000$2,000,000
Direct Material cost$220,250$310,000$215,000
Direct labour cost$215,000$340,000$410,000
Selling expenses$113,000$141,000$204,000
Interest exp$2000$2000$2000
BSBFIM501 Manage Budgets And Financial Plans

The Black Helmet Motor Cycle CompanyForecast Sales for the year ended 31 December 2013tr 20133rd Qtr 20134th Qtr 2013Tot$Units$Units$Units$ 3,000,000.00 600$ 3,000,000.00 400$ 2,000,000.00 2,000$ 4,725,000.00 1,350$ 4,725,000.00 900$ 3,150,000.00 4,500$ 7,725,000.00 1,950$ 7,725,000.00 1,300$ 5,150,000.00 6,500pany's market share then x price to arrive at total Revenue be±ore alloca²ng over the quarters.The Black Helmet Motor Cycle CompanyProposed Budget for the year ended 31 December 2014tr 20143rd Qtr 20144th Qtr 2014To$Units$Units$Units$ 2,288,000.00 770$ 4,004,000.00 660$ 3,432,000.00 2,200$ 4,440,000.00 2,100$ 7,770,000.00 1,800$ 6,660,000.00 6,000$ 6,728,000.00 2,870$ 11,774,000.00 2,460$ 10,092,000.00 8,200any's market share then x price to arrive at total Revenue be±ore alloca²ng over the quarters.k Helmet Motor Cycle Companyummary Forecast 2013 vs Budget 2014et 2014Variance% Variance$Units$Units$$ 11,440,000.00 200$ 1,440,000.00 9%12.6%$ 22,200,000.00 1,500$ 6,450,000.00 25%29.1%$ 33,640,000.00 1,700$ 7,890,000.00 21%23.5%y Example: 3,000, $50,000 or % to 1 decimal point.minimise risk o± error and to assist with the budget se³ng process

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