Professional Documents
Culture Documents
Financial Management 1 - Assessment 2 - v6.5 PDF
Financial Management 1 - Assessment 2 - v6.5 PDF
ASSESSMENT 2
BSB51918
Diploma of Leadership and Management
Course Name
BSB51415
Diploma of Project Management
Weighting 50%
BSBFIM501
Unit of Competency
Manage Budgets and Financial Plans
Instructions
1. Assessments should be completed as per your trainer’s instructions.
2. Assessments must be submitted by the due date to avoid a late
submission penalty.
3. Plagiarism is copying someone else’s work and submitting it as your
own. You must write your answers in your own words and include a
reference list. A mark of zero will be given for any assessment or part of
an assessment that has been plagiarised.
4. You may discuss your assessments with other students, but submitting
identical answers to other students will result in a failing grade. Your
answers must be yours alone.
5. Your trainer will advise whether the assessment should be digitally
uploaded or submitted in hard copy. Assessments that are digitally
uploaded should be saved in pdf format.
6. You must attempt all questions.
7. You must pass all assessments in order to pass the subject.
8. All assessments are to be completed in accordance with WHS regulatory
requirements.
Notes:
ff You are required to fill in the place with “?” only.
ff Flexible budget is a budget that reflects a range of operations in which
fixed and variable costs are separated to more accurately reflect the
effects of activity levels on cost.
ff Favourable variance is a variance in which actual revenues are larger
than the budget, or actual costs are lower than the budget.
ff Unfavourable variance is a variance in which actual costs are greater than
budgeted, or actual revenues are less than budgeted.
Tasks for Question 8:
i. Complete the above flexible budget variance report
(15 marks – 1 marks per item)
ii. Based on the schedule, what is your opinion about the entity’s
performance? (3 marks)
iii. What actions are you going to take based on the flexible budget variance
analysis? (2 marks)
9. What is a good cash management? (3 marks)
10. What is cost-volume-profit (CVP) analysis and how is it used in decision
making? (5 marks)
11. Scenario: APC Bikes, a manufacturer of sturdy mountain bikes for
intermediate-level bikers. Due to the increasing popularity of cross-country
cycling, the management of APC Bikes wants to produce a new mountain
bike. After discussions with the sales and production teams, management
has forecast the following information:
Price per bike $800
Variable cost per bike $300
Fixed costs related to bike production $5,500,000
Targeted pre-tax profit $300,000
Targeted post-tax profit $210,000
Tax rate 30%
Required: Calculate breakeven in units and total revenue. (6 marks)
12. Goods and services tax (GST), which was introduced in July 2000, is a broad-
based tax of 10% of most goods, services and other items sold or consumed
in Australia. Describe the THREE types of supplies under the GST legislation.
(6 marks – 2 marks each)
13. Scenario: Brian is running an ice cream shop. He paid $9.50 per hour for
3,950 hours of working in packing 40,000 buckets of ice cream. The standard
labour rate is $8 per hour. How much is the direct labour price variance (i.e.
the difference between the actual price for labour and the standard price)?
Is the variance favourable or unfavourable? List the possible reasons for this
variance? (5 marks)
14. When evaluating financial information systems, what factors will you need to
consider? (3 marks)
Part A total: 85 marks
Required: Prepare a cash receipts budget for the period from October to
December. (5 marks)
b. The XYZ Company purchases for the next three months are expected to
be as follows. All purchases are paid for in the same month. Ignore GST.
5. When collecting data for analysis what are the two sources we can get data
from? (2 marks)
6. How can data collected help an organisation determine the effectiveness of
their financial management processes? (3 marks)
7. What are some factors that could affect a budget? (4 marks)
8. Budget/Financial Plan Exercise
Using the following information work out the answers for the questions
below:
• 160-seat restaurant