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BSBFIM501A
Manage Budgets and Financial Plans
ASSESSMENT 1: PROJECT (Due in Week 5)
Submission details
This Assessment Task is due on the LAST CLASS of WEEK 5. Any variations to this arrangement
must be approved in writing by your assessor.
Submit a printed version of this document with any required evidences attached.
Submission Date/s
_______________ ___________________________
Submission Number
Students Name
___________________________________________
Student Number
___________________________________________
Assessors Name
___________________________________________
Trainer/Assessor Instructions:
Please explain to the students that this is an individual project. Submissions over the email
are NOT permitted.
1. Prepare a checklist for team members that is suitable for giving at an induction that defines
the following basic accounting terms and principles, and explains their importance in the
financial process in respect of your organisation. Attach examples with this response. Using
the following table or produce your own.
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Term Definition
Chart of accounts
Revenue and
Expenses
Liabilities
Invoices
Ledgers
Cash flow
Financial audit
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2.
Use a flow chart or diagram to describe the financial management processes a manager
of a work team is likely to be responsible for in your organisation. Show what tasks they
are responsible for and those delegated to group members.
3.
Explain how a manager ensures that legislative requirements for financial management
are complied with. Include all items that must be reported to the Australian Taxation
Office. Outline the procedures followed by your organisation to ensure that the
management of those budgets satisfies the compliance requirement.
4.
Prepare a procedural outline for a team member that explains their duties and reporting
responsibilities for each of the following (including GST requirements set by ATO):
a. Invoicing clients
b. Making purchases
c. Maintaining journals
5.
Develop a communication strategy for disseminating the budget to your team members.
Provide time lines and detail what feedback you would require from team members.
6.
Describe how you would respond if a team member has read the budget and asks:
a. What is the difference between gross profit and net profit?
b. Why do we have to know about the budget at all? We just do the work we are
responsible for.
c. What support will you give us to help us achieve budget?
d. I cant operate with the budget allocation given to me! The salaries and related
expenses alone will take 105 per cent of the allocation. And there is a further 15 per
cent required to cover other expenses! Ill just have to run up a deficit!
7.
8.
You have just accepted a new job for a new company that has yet to start trading. You
will be the budget manager in due course, but initially you have to set up systems that
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will be used in the organisation. Describe what systems you would put in place for
financial record keeping. Describe the monitoring process you would put in place to
ensure records were appropriately maintained.
2.
Describe five different source documents for compiling financial reports and describe
what reports may be created from these documents.
3.
What is the relationship between setting a budget and setting key performance indicators
(KPIs)?
4.
5.
6.
7.
Why might you need to negotiate a change to a budget? Describe the process you would
follow to negotiate this change at your organisation.
8.
How might you ensure the method for communicating budget information is accessible
to all members of your team? How might this change if:
a) there are part-time members of the team
b) some team members are located interstate?
9.
What support might you provide to ensure your team members can complete their
financial responsibilities competently?
10. What resources are provided to manage financial management processes at your
BSBFIM501A Manage Budgets and Financial Plans Assessment 21042015
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Part B
Read the case study, then answer the questions that follow. The cases provide different
organisational requirements, please ensure that all requirements are followed.
Case study
Carlos is a production manager. His area of the business produces two products. As part of the
budget planning process, he is advised of the following targets:
Revenue: $200,000
Gross: $70,000
Product type
Labour
rate
Materials
cost
Unit
price
Product one
$25
$120
$250
Product two
$25
$ 80
$300
1. Is the budget achievable? Develop a spreadsheet that demonstrates a work plan for
achieving the required revenue and gross targets.
2. Who should Carlos consult with when developing the work plan? Why is this important?
3. What contingency plans might Carlos develop? Describe the trigger events for
implementing these contingency plans and the relevant control actions.
4. What procedures should Carlos implement to record and monitor expenses throughout the
budget period?
5. At the mid-point of the budget period, Carlos is asked to provide a progress report. He has
produced 350 units of product one. Will Carlos have met the managements mid-point
target of $100,000 revenue and $35,000 gross? Produce a report that demonstrates
BSBFIM501A Manage Budgets and Financial Plans Assessment 21042015
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Unit
Value ($)
Basic
150
Standard plus
250
Deluxe
200
Super deluxe
100
The above production is standard from month to month and the costs involved are as
follows:
Product
Overhead
(hours)
unit ($)
Basic
2.0
100
10
Standard plus
3.0
250
20
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Deluxe
4.0
480
34
Super deluxe
5.0
600
43
Labour is costed at $50 per hour and includes contributions to leave entitlements and
superannuation contribution. Material costs are fixed with a supply contract for the
standard quantities required each month.
Hasan is advised that the company has just won an extra special order for the supply of
shower screens for a refit of a hotel, and the products are required by the end of March.
The quantities and agreed per unit price are shown below.
Product
Required units
Basic
30
275
Standard plus
50
550
Deluxe
10
750
Super deluxe
900
Production for March will now be the usual monthly production as per February above,
plus the new contract commitment.
8. Prepare a sales budget for March. Using the information from the above and below tables.
Product
Units
Unit price
Value
Basic
150
250
37500
30
275
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Standard plus
250
Deluxe
200
Super deluxe
100
750
9. Using the above information, determine the budget cost of production (labour, materials and
overheads) and the profit per item that can be expected for the normal monthly production,
and for each item to be produced for the special order.
Please read the following Case Study then complete the question 10.
CASE STUDY
Hugo is the manager of a medium-sized retailing operation and is concerned about the
collection of monies for goods sold. He has a current policy for collecting monies from
credit customers and all goods are sold on credit. He has actual sales data for the first six
months of the financial year and projected sales figures for the six months to credit
customers.
He wishes to consider the impact of adjusting the policy and has two proposals in mind.
The policies are as follows:
Timing of payment
Payment under
current policy
Projected payment
under policy option
1
Project payment
under policy option
2
60% of monies
collected
80%
90%
25% of monies
collected
12%
5%
14% of monies
collected
7%
3%
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July
$100,000
January
$120,000
August
$115,000
February
$125,000
September
$115,000
March
$125,000
October
$100,000
April
$120,000
November
$120,000
May
$120,000
December
$140,000
June
$110,000
One additional question Hugo wants answered is: Is there any advantage from a cash flow
perspective of offering a two per cent discount if accounts are settled in the first month?
Hugo expects that the discount offer will encourage the vast majority of customers to pay
in the first month. He therefore estimates that the discount will need to be applied to 90%
of the sales expected in any month. He thinks the remaining customers would pay in the
next month, and no bad debts would needs to be written off.
10. Analyse the optional policies and make a recommendation to Hugo as to which policy he
should consider as the better option. Include in your response a projected cash flow
spreadsheet for each of the proposals.
Please read the following Case Study and complete task 11.
CASE STUDY
Brendon was made responsible for a new area in the company and the single product it was
to produce. He keeps various records on the quantities of the new product his firm
produces and the direct labour and direct material costs. It is a simple product in that there
is only one raw material and labour.
BSBFIM501A Manage Budgets and Financial Plans Assessment 21042015
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11. Brendon has asked you to devise a performance report for this department and the single
product it produces based on the records he has kept. Determine the actual direct labour
cost and direct material cost per unit produced and compare these against the budgeted
amounts. Present as a spreadsheet.
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