Case Study Assessment (Event 3 of 3)

Criteria
Unit code, name and release number
BSBFIM501 Manage budgets and financial plans (1)

Qualification/Course code, name and release number

BSB51918 Diploma of Leadership and Management (3)

Student details
Student number
Learner Number: 808434440
USI: 2AYMNHFQAJ

Student name
Muhammad Yasir Kaleem

Assessment Declaration
 This assessment is my original work and no part of it has been copied from any other
source except where due acknowledgement is made.

 No part of this assessment has been written for me by any other person except
where such collaboration has been authorised by the assessor concerned.

 I understand that plagiarism is the presentation of the work, idea or creation of

another person as though it is your own. Plagiarism occurs when the origin of the
material used is not appropriately cited. No part of this assessment is plagiarised.

Student signature and Date

Muhammad Yasir Kaleem 28/07/2020

Document title: BSBFIM501_AE_CS_3of3 Page 1 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Version: 20191118
Date created: 10/08/2018
Date modified: 18/11/2019

For queries, please contact:

Technology and business Services SkillsPoint
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© 2019 TAFE NSW, Sydney

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This assessment can be found in the: Learning Bank

The contents in this document is copyright © TAFE NSW 2019, and should not be reproduced without the
permission of the TAFE NSW. Information contained in this document is correct at time of printing: 31 August
2020. For current information, please refer to our website or your teacher as appropriate

Document title: BSBFIM501_AE_CS_3of3 Page 2 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Assessment instructions
Table 1 Assessment instructions
Assessment details
Assessment overview
Assessment Event
number
Instructions for this
assessment
Submission instructions
What do I need to do to
achieve a satisfactory
result?
What do I need to
provide?
What the assessor will
Document title: BSBFIM501_AE_CS_3of3
Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3
Instructions
The objective of this assessment is to assess your knowledge and
performance as would be required to undertake financial management
within a work team in an organisation
3 of 3
This is a written assessment and it will be assessing you on your knowledge
of the unit.
This assessment is in three parts:
1. Prepare a report
2. Monitor expenditure and costs
3. Prepare, implement and modify contingency plans
This assessment also contains:
Assessment feedback
Students may discuss the answers with others. However, the responses
must be individually completed.
On completion of this assessment, you are required to upload it or hand it
to your trainer for marking.
If you study online, you will submit this assessment by uploading it in your
online platform.
Ensure your name is at the bottom of each page of this assessment.
It is important that you keep a copy of all electronic and hardcopy
assessments submitted to TAFE and complete the assessment declaration
when submitting the assessment.
To achieve a satisfactory result for this assessment all questions must be
answered correctly.
This may involve your assessor, allowing you to resubmit some of your
answers. Alternatively, your teacher/assessor may ask you additional
questions to confirm your understanding and knowledge of the topic area.
If working off-campus, a computer with internet access to complete
electronically and upload the assessment and/or pen to handwrite your
responses.
Training materials and other research you have completed to refer to while
completing the answers.
A calculator may be used.
Where completed on-campus, a computer with working internet to
Page 3 of 26
STUDENT NAME: Muhammad Yasir Kaleem
 provide?
Due date and time
allowed
Supervision
Assessment feedback,
review or appeals
Document title: BSBFIM501_AE_CS_3of3
Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3
complete electronically and upload the assessment.
The assessment must be submitted by the due date noted on the Unit
Assessment Guide. If you study online, you can find assessment due
dates/time allowed/venue information on your online platform on the
Assessments page or in your Training plan.
You should allow a minimum of three hours to complete this assessment.
You may need additional time for preparation, research, revision group
work and stakeholder engagement activities to ensure you have responded
to each question satisfactorily.
This is an unsupervised, out-of-class assessment.
Your assessor may ask for additional evidence to verify the authenticity of
your submission and confirm that the assessment task was completed by
you. This may include oral questioning, comparison with in-class work
samples, or observation.
In accordance with the TAFE NSW policy Manage Assessment Appeals, all
students have the right to appeal an assessment decision in relation to
how the assessment was conducted and the outcome of the assessment.
Appeals must be lodged within 14 working days of the formal notification
of the result of the assessment.
If you would like to request a review of your results or if you have any
concerns about your results, contact your Teacher or Head Teacher. If
they are unavailable, contact the Student Administration Officer.
Contact your Head Teacher for the assessment appeals procedures at your
college/campus.
Page 4 of 26
STUDENT NAME: Muhammad Yasir Kaleem
 Specific task instructions
The instructions and the criteria in the case study below will be used by the assessor to
determine whether you have satisfactorily completed the Case Study Scenario. Use these
instructions and criteria to ensure you demonstrate the required knowledge.
You may be required to upload an electronic version of your responses to certain questions
where you have used software such as MS Excel. If providing a printed copy, you will need to
provide two copies:
 1 x final spreadsheet and
 1 x final spreadsheet showing your formulas.
Make sure you insert your name and reference the question you are responding to in your
attachments.
To complete this part of the assessment, the student will be required to read the following
Case Study Scenario.
Once the student has read the information, they are required to complete their written
responses to
Part 1. Prepare a report
Part 2. Monitor expenditure and costs
Part 3. Prepare, implement and modify contingency plans
Once completed the student will need to submit this assessment to the assessor for marking.

Document title: BSBFIM501_AE_CS_3of3 Page 5 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Case Study Scenario: Perfect Plants Pty Ltd

Accounting Principles and Government Legislation

Perfect Plants Pty Ltd is a mid-sized wholesale plant nursery based in the western suburbs of
Sydney. As well as their wholesale business they have a small retail operation and
propagation facility where they grow a select number of specialist varieties of orchids. The
following financial statements for 2017/18 tax year have been provided.

Perfect Plants Pty Ltd

Balance Sheet as at 30/6/18

Owner’s Equity $ $
Capital 2,766,000
Add: Net Profit 469,000
3,235,000
Less: Drawings 350,000 2,885,000

Assets
Current Assets
Cash at Bank 200,000
Debtors Control 350,000
Stock Control 550,000 1100,000
Non-Current Assets (Fixed Assets)
Premises 5,000,000
Equipment 1,000,000
Vehicles 750,000 6,750,000
Total Assets 7,850,000

Liabilities
Current Liabilities
Creditors Control 915,000
GST Clearing 50,000 965,000
Non-Current Liabilities
Loan XYZ Bank 4,000,000
Total Liabilities 4,965,000

Net Assets (Assets less Liabilities) 2,885,000

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Perfect Plants Pty Ltd
Cash Flow Statement for the year ended 30/6/18

Cash Flows from Operating Activities $

Retail Cash Sales 1,050,000
Receipts from Debtors 4,750,000
Interest Received 10,000
GST Collected 640,000
GST Paid (458,500)
ATO – GST Settlement (171,500)
Payments to Creditors (2,535,000)
Wages & Salaries (1,055,000)
Interest Paid (200,000)
Other Operating Expenses (985,000)
Income Tax Paid (201,000)
Total Cash Flow from Operating Activities 844,000
Cash Flow from Investing Activities
Purchase of Equipment (250,000)
Total Cash Flows from Investing Activities (250,000)
Cash Flow from Financing Activities
Drawings (120,000)
Loan Repayments (350,000)
Total Cash Flows From Financing Activities (470,000)
Net Change in Cash Position 124,000
Opening Bank Balance 76,000
Closing Bank Balance 200,000

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Perfect Plants Pty Ltd

Profit and Loss Statement

For the year ended 30/6/18

Revenue $ $
Retail Cash Sales 1,050,000
Wholesale Credit Sales 5,450,000
Interest Received 10,000 6,510,000
Less Cost of Sales
Cost of Goods Sold 3,200,000
Cartage Inward 150,000 3,350,000
Gross Profit 3,160,000
Less Expenses
Wages & Salaries 1,055,000
Interest Paid 200,000
Other Operating Expenses 985,000
Bad Debts 100,000
Depreciation 150,000 2,490,000
Net Profit Before Tax 670,000
Income Tax Expenses 201,000
Net Profit After Tax 469,000

Document title: BSBFIM501_AE_CS_3of3 Page 8 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Part 1: Prepare a report
You are the financial manager for Perfect Plants. Use the above information to assist you in
preparing a report to your on the budgets and expenditure of Perfect Plants. You will also be
required to use the ATO website to find some of the answers. Where appropriate, provide
details of where you found your information and any calculations performed.

Your report must include:

1. An evaluation of the accounting method used and whether it is approriate
2. An evaluation of the income tax rate applied
3. The GST implications for Pefect Plants.
4. Record keeping and storing requirements
5. Collection methods of data and information used
6. An analysis of the data and information in point 5 above and the identification,
documentation and recommendations for improvements to existing financial management
processes.

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Part 2: Monitor expenditure and costs
You are the Sales Manager for the Wholesale Department at Perfect Plants Pty Ltd. You have
a team of nine sales people and one horticulturalist who assists in the filling of specialist
orders. You have been given the following departmental budget to follow for the 2017/18
financial year.
Wholesale Department Budget 2017/18
Credit Sales Revenue $6,000,000
Cost of Sales ($3,100,000)
Wages ($800,000)
Telephone ($50,000)
Travel ($350,000)
Office Supplies ($75,000)
Bad Debts ($150,000)
Other Operating Expenses ($125,000)
Departmental Profit $1,350,000

Due to the seasonality of your Sales Revenue, Cost of Sales and Travel Expenses are expected
to fluctuate throughout the year. In the first and fourth quarter of the financial year (Winter,
late Autumn and early Spring) you expect a 20% drop from the average. In the second
quarter, heading towards Christmas, you expect an increase of 30% and the third quarter an
increase of 10% from the average.

Question 1
Using the above information, implement a process to monitor actual expenditure and control
of costs by constructing a cyclical quarterly budget of your department using Excel.
Equation functions must be used for all calculations.
Please provide a copy of your excel worksheet and include a reference to the question
number. Alternatively attach a copy of your excel worksheet showing your final budget and a
second copy showing your formulas.

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Wholesale Department Budget 2017/18
Annual Q1 Q2 Q3 Q4
Credit Sales Revenue $6,000,000 $1,200,000 $1,950,000 $1,650,000 $1,200,000
Cost of Sales -3100000 -620000 -1007500 -852500 -620000
Wages -800000 -2000000 -200000 -200000 -200000
Telephone -50000 -12500 -12500 -12500 -12500
Travel -350000 -70000 -113750 -96250 -700000
Office Supplies -75000 -18750 -18750 -18750 -18750
Bad Debts -150000 -37500 -37500 -37500 -37500

Other Operating Expenses -125000

-31250 -31250 -31250 -31250
Departmental Profit $1,350,000 $210,000 $528,750 $401,250 $210,000

Question 2
Using the excel spreadsheet you created in question 1, monitor expenditure and costs on a
cyclical basis (in this case quarterly) and update the table to include comparisons of the
budgeted figures for the first quarter to the actual figures. Identify variations and cost
overruns by adding additional columns to calculate variances and show where these variances
are favourable or unfavourable
Please provide a copy of your excel worksheet and include a reference to the question
number. Alternatively attach a copy of your excel worksheet showing your final budget and a
second copy showing your formulas.
Variance
Annual
Q1 Budgeted Actual Variance $ % F/U
Credit Sales Revenue $6,000,000 $1,200,000 $1,125,000 ($75000) 6.25% U
Cost of Sales -3100000 -620000 -581250 $38,750 6.25% F
Wages -200000 -200000 $0 0% F
Telephone -12500 -10000 $2,500 20.00% F
Travel -70000 -74200 6% U
Office Supplies -18750 -15000 $3,750 20.00% F
Bad Debts -37500 -2625 7% U

Other Operating Expenses F

-31250 $0 0%
Departmental Profit $1,350,000 $210,000 $173,125 $36,875 17.5% U

Question 3
From question 2, review the three variations; sales, cost of sales and bad debts, and answer
the following questions.
a. Identify any ‘high priority’ variation in your budgeted figures and explain why do you
think these are of a high priority? Your response should be approximately 50-100
words.
 Commissions: as our sales center has the biggest sales comparing to other sales center
we have negotiated the commission with team members will be 2.5% of the sales but
the budget shows only 2 % of the sales. We need to make sure that we will give our
staff the correct commission based on our agreement before.

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 ● Sales: In Q2 the completion of repair and maintenance is already 90%. We are
supposed to get higher sales as sales for Q2 have been estimated to be $1,000,000
when the repair and maintenance reach 90% completion but only $750,000 was
recorded.
 Wages: The wages in Q1, Q2, Q3, and Q4 show the same amount. The team members
in our sales center are supposed to get more wages for their hard work and untiring
efforts. It can give them motivation to improve their performance in the near future.
 Gross profit: When the commissions, sales and wages fluctuate, the gross profit
fluctuates, so does the gross profit has to follow the changes.
● Store supplies: Sales in the first quarter (Q1), third quarter (Q3), and the fourth quarter
(Q4) are generally 30% less than the second quarter (Q2). It means the supplies in Q2
are supposed to be more than the other quarter but the budget shows that the cost of
goods sold in Q1, Q2, Q3, and Q4 are all the same. It is indicating that there is
something wrong with it and we have to fix it.

b. What are some possible reasons for this variation? Your response should be
approximately 50-100 words.

The 2.5% commission rate is a must for the team members as a reward for their
achievement. That’s why we have to change the percentage in our budget from 2% to
2.5%. Cutting down this rate will not be good for the morale and can have adverse effects
on the overall performance of the team, rendering their efforts not as effective for the
following quarters.

Budget for repairs and maintenance not realistic

considering need.

The budget of the repairs and maintenance in our budget is $50,000 coming down to
$12,500 each quarter but we want at least 90% of the repair and maintenance done in
quarter two. Because Sales in Q2 depend on completion of 90% of repair and maintenance.
There are two ways to make this work. First, we can put more budgets for the repair and
maintenance or we can just split $2500 for Q1 and Q2. So, for the next quarter no more
budget for the repair and maintenance as it is already 90% done and we can continue the
work in the next financial year.

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 c. What recommendations would you make to bring the budget back under control for
the remaining quarters? Your response should be approximately 50-100 words.

As there are more projections for Sales centre A, there should be more
commissions for sales staffs. Sales center A has the biggest sales compared to
other sales center. We will give them 2.5% commission of the sales to appreciate
their hard work. It is also can motivate the staff in other sales center to improve
their performance and can start a healthy competition of doing better than the
other teams. The wages for Sales Centre A should be adjusted due to high sales
volume. We will put another $10,000 for sales center A.

d. How would you go about implementing these recommendations within your team?
Your response should be approximately 50-100 words.

● Exploring overseas options for manufacturing and new markets unaffected by

domestic downturn i.e. choosing the country with cheap labor to manufacture our
products so that we can decrease our expenses.
● Increasing sales through marketing
Strengthen our advertisement in popular media such us facebook, youtube ,
brochures, and other social media.

● Reducing wastage
Try to find the way to recycle our wastage to something useable.

● Seeking funding to finance investment put at risk by poor profits.

Investor is another option that can help our sales center with poor profit. The funding
from the investor will give us more budgets for promotion and other expenses that
we help us get access bigger markets.

e. How would these improvements be monitored? Your response should be

approximately 50-100 words.
We will be monitoring the improvements with the help of our Electronic system. Enterprise
resource planning (ERP) system should drive data gathering and analysis related to budget

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 monitoring. Use of the ERP system allows for real time information to be readily accessible
for encumbrances and other time sensitive information as opposed to reliance on static,
stand-alone reports.

Automation. Budget monitoring data and reports will be integrated into and generated by an
our ERP system to ensure efficient use of staff time and also consistency of information.

Consistency. Off-system analysis will be consistently applied to all aspects of monitoring the
budget improvements and clearly articulated to both staff conducting the analysis and end
users.

Question 4
From your experience you estimate that 75% of Debtors would pay within the first month
from the sale, 16% within the second month, 7% within the third and 2% will be written off as
bad debts.
Your Credit Terms with your suppliers stipulate they must pay within 45 days of purchasing.
Using Excel, complete a quarterly Aged Debtors Budget for your department using the
information above as well as any required information provided in previous sections.
Equation functions must be used for all calculations.
Total Q1 Q2 Q3 Q4
Sales 6,000,000 $1,200,000 $1,950,000 $1,650,000 $1,200,000
Current
30 days 4,500,000
60 days
Bad Debts
Please provide a copy of your excel worksheet and include a reference to the question
number. OR Alternatively attach a copy of your excel worksheet showing your final budget
and a second copy showing your formulas where applicable.

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Question 5
The accountant from this enterprise has provided you with the following figures:
 Average level of accounts receivable (debtors) $12,500
 Credit sales for the year $250,000

Calculate the Debtors Ageing Ratio (Accounts receivable collection period).

Average Accounts Receivables

Debtors Ageing Ratio = ¿ X 365
Annual Sales

12500
X 365 = 18.25
250000

Debtors Ageing Ratio = 18.25

Document title: BSBFIM501_AE_CS_3of3 Page 15 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Part 3: Prepare, implement, monitor and modify
contingency plans
Question 1: Preparation of contingency plans
a. Explain the process of preparing contingency plans. Your response should be
approximately 50-100 words.

Contingency Plan
Company name:
Person developing the plan:Sales Centre A Manager
Name: Position Store Manager

Risk identified: Sales fall due to economic downturn

Strategies/activities to minimize By when By whom

the risk
Q2 Sales
General
Restructuring or renegotiating
Manager
wages and team
member
Q3 Production
Manager
Diversification of product range

Q2 Sales
Exploring overseas options for
General
manufacturing and new markets Manager
unaffected by domestic
downturn
Q2 Sales
Increasing sales through
General
marketing Manager

Reducing wastage Q1 Production

Manager

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Contingency plan
b. Based on your review of the variations in sales and cost of sales from Part 2 question
3, prepare contingency plans to address the variations in order to maintain financial
objectives. Your response should be approximately 150 -200 words.
Table 2 Preparation of contingency plans
Variation Potential Impact Contingency Plan
Sales Due to the We should prepare to channel our energies into diverse
seasonality of your markets and increase our marketing budget in
Sales Revenue, Cost anticipation of sales slowing down so we can cushion
of Sales and Travel the hit a little. We can ask our sales teams to find new
leads and turn potential clients into loyal clients with
Expenses are
best customer service and prompt and complete
expected to fluctuate product guide.
throughout the year.
In the first and fourth We should also invest in Research and Development
quarter of the and diversify our product range to gain more access to
financial year all kinds of target market.
(Winter, late Autumn
and early Spring) you
expect a 20% drop
from the average.
Cost of sales In the second The costs can be efficiently managed if we streamline
quarter, heading the procedures and improve our projection and
towards Christmas, ordering. By doing this we can secure raw materials at
you expect an cheaper rates, negotiate with clients in time for
Christmas. We can also negotiate our contracts and
increase of 30% and
associations with couriers and delivery partners.
the third quarter an
increase of 10% from
the average.

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Question 2. Implementation of contingency plans

a. Explain the process of implementing contingency plans. Your response should be

approximately 50-100 words.

● restructuring or renegotiating wages

the wages based on the sales volume of the sales center

● diversification of product range

● exploring overseas options for manufacturing and new markets unaffected by
domestic downturn
choosing the country with cheap labor to manufacture our product so that we can
decrease our expenses

● increasing sales through marketing

Strengthen our advertisement in popular media such us facebook, youtube ,
brochures, and other social media.

● reducing wastage
Try to find the way to recycle our wastage to something useable.

● Seeking funding to finance investment put at risk by poor profits.

Investor is another option that can help our sales center with poor profit. The funding
from the investor will give us more budgets for promotion and other expenses that we
need to get more customer.

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Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 b. Provide implementation strategies to support your contingency plans in order to
maintain financial objectives. Your response should be approximately 150 -200 words
Table 3 Implementation of contingency plans
Variation Contingency
Sales Broadening product
range, finding different
markets and focusing on
more than our core
products to suit all kind
of clients. Cutting poor
performers and
introducing revolutionary
products.
Hold onto loyal clients
and offer them exciting
packages to offset the
projected decline in sales.
Cost of sales Cost will be relatively
higher since sales will
sling down.
Document title: BSBFIM501_AE_CS_3of3
Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
Implementation Strategy
We should invest more in R&D and increase our
catalogue to attract new customers and keep our usual
clients engaged. In these testing times, industry is
squeezed for competition and the only way to stay
afloat is finding relevance with engaging range of
products. Finding new varieties, better looking plants,
environmental friendly plants, all of these because of
better R&D, will go a long way.
Also, we can have a look at our partners, contractors
and use third party platforms for direct and indirect
marketing. For example, a building contractor in a new
building project should be encouraged to use
greeneries from us for promotion as part of negotiated
marketing.
We’ll try to buy in bulk and save as much. Will try to
get discounts as buying in large quantities helps.
Will substitute cheaper materials and source them from
low costing areas
Will try to automate the most of the system to rely less
on human factor. It also brings efficiency and accuracy
Page 19 of 26
 Question 3: Monitoring of contingency plans
Based on your contingency plans above, you have revised the sales and cost of sales budgets
for Quarters 2 and 3. Implement a process to monitor sales and cost of goods sold of your
department using Excel.
Equation functions must be used for all calculations.
Please provide a copy of your excel worksheet and include a reference to the question
number. Alternatively attach a copy of your excel worksheet showing your final budget and a
second copy showing your formulas.

Quarter 1
Varianc Varianc Varianc
Q1 Budgeted Q1 Actual e$ e% e %F/U
Credit Sales Revenue $1,200,000 $1,125,000 (75,000) 6.25 U
Cost of Sales $620,000 $581,250 38,750 6.25 F

Quarter 2
Varianc Varianc Varianc
Q2 Budgeted Q2 Actual e$ e% e %F/U
Credit Sales Revenue $1,150,000 $1,120, 000 (30,000) 2.61 U
Cost of Sales $590,000 $584,200 5800 0.98 F

Quarter 3
Variance Varianc Varianc
Q3 Budgeted Q3 Actual $ e% e %F/U
(100,000 8.69 U
Credit Sales Revenue
$1,150,000 $1,050,000 )
Cost of Sales $590,000 $600,000 (10,000) (1.69) U

Document title: BSBFIM501_AE_CS_3of3 Page 20 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Question 4. Modification of contingency plans
a. Explain the process of monitoring of contingency plans. Your response should be
approximately 50-100 words.

To monitor the status of contingency plan, following directives can be taken into consideration;

Track the progress of activities against the schedule, for example check if planned activities, meetings
and critical milestones are occurring on time

as the schedule changes, provide the updated schedule to relevant stakeholders

Provide timely advice and guidance to the finance team and business areas

Build in quality checks, such as reviews of supporting documentation and working papers at critical
milestones

Maintain contingency plans such as using back-up and/or temporary staff, or reaching prior
agreement with staff to work overtime

Address significant issues promptly, consider their impact and implement corrective action, and

Periodically brief senior management and the audit committee regarding progress against the agreed
timetable.

b. Six months after the implementation of the contingency plan, sales at Perfect Plants
continue to decline. Modify your contingency plan to address the decline and increase
sales. Your response should be approximately 100-200 words.
Table 4 Modification of contingency plans
Contingency plan Modification to the plan

 Profit for FY more than 10% less than

 Minimize the rust using sprays anti-
rust, in case of bikes damaged, fix
and sell it cheaper
 Develop strategies to increase sales
and training of staff in sales
techniques
 Creates policies and procedures and
enforce that they are followed
 Stay ahead of credit sales
budgeted
 Currently no enforcement of credit
terms (customers take too long to pay
back impacting on cash flow) Need to be
proactive in that regard
 Use parts of bikes and salvage as much
as we can.
 Have a review of staff sales training and
more frequent meetings

Document title: BSBFIM501_AE_CS_3of3 Page 21 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Assessment Feedback
NOTE: This section must have the assessor signature and student signature to complete the feedback.
Specifc task feedback
Table 3 Assessor feedback
Satisfactory response?  Y/N Feedback
Part 1 Prepare a Report that includes :
 An evaluation of the accounting method
used and whether it is approriate
 An evaluation of the income tax rate
applied
 The GST implications for Pefect Plants
 Record keeping and storing
requirements
 Collection methods of data and
information used
 An analysis of the data and information
in point 5 above and the identification,
documentation and recommendations
for improvements to existing financial
management processes
Part 2 Monitor expenditure and costs
Question 1
Using the above information, implement a
process to monitor actual expenditure and control
of costs by constructing a cyclical quarterly
budget of your department using Excel
Part 2 Monitor expenditure and costs
Question 2
Using the excel spreadsheet you created in
question 1, monitor expenditure and costs on a
cyclical basis (in this case quarterly) and update
the table to include comparisons of the budgeted
figures for the first quarter to the actual figures.
Identify variations and cost overruns by adding
additional columns to calculate variances and
show where these variances are favourable or
unfavourable
Part 2 Monitor expenditure and costs
Question 3
From question 2, review the three variations;
sales, cost of sales and bad debts, and answer
the following questions.
 Identify any ‘high priority’ variation in your

Document title: BSBFIM501_AE_CS_3of3 Page 22 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Satisfactory response?  Y/N Feedback

budgeted figures and explain why do you

think these are of a high priority?
 What are some possible reasons for this
variation?
 What recommendations would you make to
bring the budget back under control for the
remaining quarters?
 How would you go about implementing these
recommendations within your team?
 How would these improvements be
monitored?
Part 3 Prepare, implemet, monitor and modify
contingency plans
Question 1:
a. Explain the process of preparing contingency
plans
b.Based on your review of the variations in
sales and cost of sales from Part 2 question
3, prepare contingency plans to address
the variations in order to maintain financial
objectives
Part 3 Prepare, implemet, monitor and modify
contingency plans
Question 2
a. Explain the process of implementing
contingency plans
b.Provide implementation strategies to support
your contingency plans in order to maintain
financial objectives
Part 3 Prepare, implemet, monitor and modify
contingency plans
Question 3:
Based on your contingency plans above, you
have revised the sales and cost of sales budgets
for Quarters 2 and 3. Implement a process to
monitor sales and cost of goods sold of your
department using Excel.
Equation functions must be used for all
calculations.
Please provide a copy of your excel worksheet
and include a reference to the question number.
Alternatively attach a copy of your excel
worksheet showing your final budget and a
second copy showing your formulas.

Document title: BSBFIM501_AE_CS_3of3 Page 23 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Satisfactory response?  Y/N Feedback
Part 3 Prepare, implemet, monitor and modify
contingency plans
Question 4.
a. Explain the process of monitoring of
contingency plans
b.Six months after the implementation of the
contingency plan, sales at Perfect Plants
continue to decline. Modify your
contingency plan to address the decline
and increase sales.

Document title: BSBFIM501_AE_CS_3of3 Page 24 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Additional evidence for verification of assessment

Additional questions asked by assessor

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additional questions that were asked during this assessment event.

Student reponses to additional questions

Record the student responses to any additional questions that were asked during this
assessment event.

Document title: BSBFIM501_AE_CS_3of3 Page 25 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem
 Overall Assessment Event Feedback
NOTE: This section must have the assessor signature and student signature to complete the
feedback except if the student submits the assessment online.

Assessment outcome
☐ Satisfactory
☐ Unsatisfactory

Assessor Feedback
☐ Has the Assessment Declaration on page 1 been signed and dated by the student?
☐ Are you assured that the evidence presented for assessment is the student’s own work?
☐ Was the assessment event successfully completed?
☐ If no, was the resubmission/re-assessment successfully completed?
☐ Was reasonable adjustment in place for this assessment event?
If yes, ensure it is detailed on the assessment document.
Comments:

Assessor name, signature and date:

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submission before attaching the cover sheet and submitting to your assessor for marking.

Document title: BSBFIM501_AE_CS_3of3 Page 26 of 26

Resource ID:TBS_18_005_BSBFIM501_AE_CS_3of3 STUDENT NAME: Muhammad Yasir Kaleem