SITXFIN004 - Prepare and monitor budgets

SITXFIN004 – Prepare and monitor budgets.
SITXFIN004
.
Version 3.0
Student Assessment Guide
Australian Academy of Higher Learning Pty Ltd T/A Technical Institute of Victoria (TIV)
RTO No:21994 CRICOS CODE 02924F Page 1 of 62
SITXFIN004 Student Assessment Guide Version: 2.2 Date Created: July 2017
Last Reviewed: MARCH 2020 Responsibility: RTO Manager Date Implemented: JULY 2020
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SITXFIN004 –Student Assessment Guide Page 2 of 62

RTO No:21994 CRICOS CODE 02924F Version 3.0
ASSESSMENT RECEIPT FORM
STUDENT NAME:
STUDENT ID:
COURSE CODE:
COURSE TITLE:
TRAINER’S/ASSESSOR’S NAME:
DUE DATE
UNIT CODE AND DESCRIPTION SITXFIN004 - Prepare and monitor budgets
NOTE:
1. This form must be stapled on top of the Assessment Workbook upon submission.
2. This Assessment Receipt Form must be dated and signed in.
DECLARATION
1. I am aware that penalties exist for plagiarism and academic dishonesty.
2. I am aware of the requirements set by my Trainer/Assessor.
3. I have retained a copy of my Assessment.
Student Signature: Date:
ASSESSMENT RECEIVED BY TIV Staff

Name:
Date:
Signature:
================================= Tear Here ===========================
Students must retain this as a Record of Submission.

Assessment Handed On:
Unit Code & Description: SITXFIN004 - Prepare and monitor budgets

TIV Student
Assessment Received by
TIV Staff Name: ………………...……..............……...……... Student ID: .................................................................
Signature: …………………………...……...……...…………..…... Student Signature: ….………………………………………..…….

This page is intentionally Left Blank
Competency Record Sheet:
This form is to be completed by the assessor and is used to record the student assessment Outcome/result for the Unit of
Competency. All student submissions (Outlined below) are to be attached to this sheet before placing on the student
academic file. Student results are not to be entered into the Student database unless all relevant paperwork is completed
and attached to this sheet.
Student must complete all assessment tasks as satisfactory (S) to be Competent (C)
To be fill by the Student

Student’s ID:
Student’s Name:
Date of
Assessor’s Name:
completion:
Qualification Code and Title
Unit of Competency SITXFIN004 Prepare and monitor budgets
Assessor Use OnlyFirst attemptRe-SubmissionLate Submission
Student Results
Assessment Methods Not Yet
Please attach the following assessment methods to this sheet Satisfactory(S) Satisfactory
(NYS)
Assessment 1: Knowledge Test □ □
Assessment 2: Case Study □ □
Assessment Method 3: Written Test □ □
Comments:
Note: student is required be marked satisfactory in all assessment methods to be deemed competent in this unit.
Unit Outcome:  Competent  Not Yet Competent

Is re-assessment required:  Yes  No
Student’s Signature: Assessor’s Signature:

Administrative Use Only
All sections are completed and signed. The Final Unit result is entered in the Student Management System.
Name: Signature Date

ABOUT THIS BOOKLET
Please read all the information given to you when you receive this assessment booklet. If you do not
understand any part of this booklet, please inform your assessor/trainer.
The Student Guide contains two (2) parts:
PART 1: Assessments information:

This part contains information on assessments for this unit of competency and how assessment will be
conducted throughout unit to achieve the competency. It includes:
 Application of the unit of competency

 Purpose of assessment
 Elements, Performance criteria, performance and knowledge evidences requirements of the unit
 Context, Conditions and required resources and location of the assessment.
 Assessment methods and tasks.
 An outline of evidence to be gathered from student.
 Administration, recording and reporting the requirements including special adjustments, appeals,
reasonable adjustments and assessors’ intervention.
PART 2: Assessment Methods and Tasks:

This part contains the information to successfully undertake the assessment Method. In each assessment
method, students will find the following information:
 Generic Instructions to students on assessment method
 Information on Resources required where applicable
 Planning the assessment
 Evidence specification
 Evidence submission
 Assessment Tasks and Task instructions.
PART 1
Assessment Information
Application of the unit of competency:
This unit describes the performance outcomes, skills and knowledge required to analyse financial and
other business information to prepare and monitor budgets. It requires the ability to draft and negotiate
budgets, identify deviations, and manage the delivery of successful budgetary performance.
The unit applies to all tourism, travel, hospitality and event sectors. The budget may be for an entire
organisation, for a department or for a particular project or activity.
It applies to senior personnel who operate independently or with limited guidance from others and who
are responsible for making a range of financial management decisions.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of
publication.
Purpose of assessment:
The purpose of assessment is to determine competency in the unit SITXFIN004 - Prepare and monitor
budgets.
Elements
1. Prepare budget information.

2. Prepare budget.
3. Finalise budget.
4. Monitor and review budget.
Foundation Skills
Foundation skills essential to performance in this unit, but not explicit in the performance criteria are
listed here, along with a brief context statement.
SKILLS DESCRIPTION
Oral communication  liaise and negotiate with colleagues on potential complex and
skills to: conflicting budget requirements.
Numeracy skills to:  draft budgets that meet organisational objectives

 interpret and analyse financial information from forecasts and
previous performance data
 develop financial estimates and scenarios using complex calculations.
Problem-solving skills to:  analyse internal and external factors for potential impact on budget
 identify budgetary challenges and develop different options for their
resolution
 identify budget deviations and deficiencies and develop options for
meeting budgetary requirements.
Teamwork skills to:  invite and coordinate the input of others in the organisation,
and provide direction on budget management.
Planning and organising  access and sort all information required for budget preparation
skills to:  coordinate a timely, efficient and consultative budget development
process.
Technology skills to:  use accounting software packages.
Performance evidence:
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in
the context of the job role, and:
prepare a budget for a business that meets the specific business’ needs
demonstrate the following when preparing the above budget:
 consultation on components
 analysis of factors that impact on the budget
 completion of draft and final versions of budget within designated
timelines monitor and review the above budget against performance over its life
cycle.
Knowledge Evidence
Demonstrated knowledge required to complete the tasks outlined in elements and performance
criteria of this unit:
 types of budgets:
o cash budgets
o cash flow budgets
o departmental budgets
o event budgets
o project budgets
o purchasing budgets
o sales budgets
o wage budgets
o whole of organisation budgets
 budget terminology
 specific industry sector and organisation:
o role and nature of budgets
o budget formats, budget performance and financial reports
o financial reporting procedures and cycles
o features and functions of accounting software programs used to prepare and
monitor budgets.
 internal and external factors that impact on budget development:
o growth or decline in economic conditions
o human resource requirements
o new legislation or regulation
o organisational and management restructures
o organisational objectives
o scope of the project
o shift in market trends
o significant price movement for certain commodities or items
o supplier availability and cost
 budget preparation and monitoring practices and techniques:
o sources and contents of data required for budget preparation:
 competitor research
 customer or supplier research
 declared commitments in areas of operation
 financial information from suppliers
 financial proposals from key stakeholders
 income and expenditure for previous time periods
 departmental, event or project budgets
 grant funding guidelines or limitations
 management policies and procedures
 organisational budget preparation guidelines
 performance information from previous periods
o techniques for making budget estimates
o common reasons for deviations and budget deviation management.
Context and conditions for assessments:

To comply with the assessment condition of this unit:
 TIV will conduct the assessment to gather performance evidences for this unit in simulated
hospitality environment in the classroom at Level 1 /252 Lygon, Carlton VIC 3053.
 Students must demonstrate adequate skills and knowledge evidence by providing a satisfactory
outcome for each assessment task. Assessors will refer to the model answers in the trainer and
assessor guide to compare with the student responses for each question. However, assessor may
consider student’s responses if those are relevant to the questions.
 Classroom will have access to resources to conduct the assessment tasks including access to
commercial policies and procedures relating to complaint, conflict and dispute resolution
handling.
 Knowledge assessments for this unit will be conducted in TIV Classrooms at Level 1 /252 Lygon
Street, Carlton VIC 3053
 TIV assessors who are assessing this unit will satisfy the requirements specified in Clauses 1.13-
1.16 in the Standards for Registered Training Organisations

Resources Required:
The assessor will ensure that assessment is conducted in a safe environment and you have access to the
following resources for the unit.
- Computers with access to internet and printers

- learner guide for unit SITXFIN004 Prepare and monitor budget.
- Access to TIV Simulated environment in TIV classroom with access to equipment and
documents defined in conditions of assessment.
- Additional assessor/s if required
Competency Requirements:
Student must complete the all the assessment tasks to the satisfactory level to be deem competency in
this unit
Assessors will ensure that the evidence collected meets the requirements of the Rules of Evidence
(authentic, current, sufficient and valid) prior to entering results into the competency record sheet.
Students unsuccessful at achieving “Satisfactory” for any assessment at the first attempt will be given two
opportunities for reassessment. If the student is still deemed Not Yet Competent (NYC) after two
reassessments in a unit of competency student will be required to repeat the unit as per the scheduled
delivery of the course. For further details, refer to TIV Re-Assessment Policy and TIV Course Progress
Policy.

Assessment Assessment description Due date Location of

tasks assessment
Assessment There are four answers given in the questions.
TIV
Method -1 You must mark the most appropriate answer
Knowledge Test classroom
relevant to the question
Assessment This assessment requires students to analyse the TIV
Method -2 case study scenario and calculate costs and Classroom/Simulation
Case Study prepare budgets for an event environment
In this assessment, there are questions assigned TIV
Assessment
into several sections. Student are required to classroom
Method -3
Written Test answer these questions based on the learning
and/or individual practical experience.
Outline of evidence to be collected:

You must submit the following evidence to be marked competent for this unit. Your assessor will ensure
that the evidence submitted meets the Rules of Evidence which are valid, sufficient, current, and
authentic.
 Completed knowledge test and submit to your assessor.

 You must submit the hard copy of the assessment. If you unable to submit
Assessment Method -1
the hard copy must discuss and agree the format with the assessor prior to
Knowledge Test
the deadline.
 Complete and sign the cover sheet for assessment task
 Satisfactorily completed budget reports in spreadsheets
 Completed and sign the cover sheet for assessment task.
 Marking guide which assessor has marked.
Case Study
 Completed and signed the cover sheet.
 Completed student guide
 Completed written test and submit to your assessor.
 You must submit the hard copy of the assessment. If you unable to submit
the hard copy must discuss and agree the format with the assessor prior to
Written Test
the deadline.
 Complete and sign the cover sheet for assessment task

Administration, recording and reporting requirements:
You must read and follow this information carefully while completing assessments for this unit of
competency and if you are unsure of any instruction, please contact your assessor to clarify.
The assessments are intended to be equitable, fair and flexible.
Submission of assessment:
 Your assessor will mark the submitted assessment, provide feedback to you and complete the
comments section against each task, where applicable.
 ALL tasks must be completed in legible English.
 You must submit assessment tasks as per the format (Handwritten/Electronically) given under the
assessment instructions in each assessment method.
 You must submit all assessments on or before the due date specified by the assessor.
 Extensions for individual assessment tasks may be negotiated in specific circumstances with your
assessor/trainer. However, you need to provide genuine documents as evidence when seeking an
extension to due date (e.g. extensions due to illness will require a medical certificate.
 You are permitted to use dictionaries(printed/Electronic) and to seek support (as required) unless
it puts in jeopardy the integrity of the assessment, your assessor will let you know if this is the
case.
 Unless the assessment task specifically allows pair work or group activities such as brainstorming,
you must submit your own original work and must not copy the work of other students.
Plagiarism is unacceptable.
 You must submit your assessment tasks in person in hard copies in the classroom.
Recording an assessment result:
Once the assessments have been completed, the assessor will record the assessment results on the
competency assessment record sheets
Assessors will check that you have completed the student declaration prior to filling out the assessment
cover sheet.
Retaining assessment records:
TIV will securely retain all completed student assessment items for each student for a period of 18
months from the date on which the judgement of competence for the student was made. However,
Students are required to retain a copy of the submitted assessments. (Assessments which are completing
outside the classroom). TIV will also retain sufficient data to be able to reissue AQF certification
documentation for a period of 30 years.
All assessment records submitted to the assessor for marking will be retained securely.
The Administration Manager will ensure that the student records are securely retained in accordance
with the TIV record control policy and procedure.
Assessment outcomes:

For unit of competency:

There are two outcomes for assessments: C = Competent and NYC = Not Yet Competent
You will be awarded C = Competent on completion of the unit when the assessor is satisfied that you
have completed all assessments and have provided the appropriate evidence required to meet all criteria
in line with the Rules of Evidence. If you fail to meet this requirement, you will receive the result NYC =
Not Yet Competent and will be eligible to be re-assessed in accordance with the TIV Re-Assessment Policy
and TIV Course Progress Policy.
For assessment methods:
There are two assessment outcomes for assessment methods: S = Satisfactory and NS = Not Satisfactory.
On the individual assessment cover sheet for assessment method you will be marked Satisfactory, if you
have completed the task successfully, submitted all evidence and satisfied the assessment criteria. if you
have not completed the task, the evidence is not sufficient or does not meet the requirements of the
assessment criteria, you will be marked as Not Satisfactory.
Re-assessment:
If you are unsuccessful at achieving competency at the first attempt, you will be given two further
opportunities for re-assessment at a mutually agreed time and date. For further details, refer to the TIV
Re- Assessment Policy and TIV Course Progress Policy. As this is a competency-based program, the
assessment continues throughout the program until you either achieve Competency in the assessment
tasks or a further training need is identified and addressed.
Student access to records:
You have the right to access current records of your participation and results at any time. You can see
your results or attendance progress by requesting a copy of your records by contacting the student
administration and the assessor.
Support:
You may seek clarification about the assessment information and the instructions and tasks from the
assessor. You may have to agree to a timeframe with assessor if you need to meet out of your scheduled
classes.
Reasonable adjustments and special learning needs:
TIV works to ensure that students with recognized and acceptable disadvantages can access and
participate in education and training on the same basis as other students. Disadvantages may be based,
for example, upon age, cultural background, physical disability, limited or non-current industry
experience, language, numeracy or digital literacy issues.
Prior to enrolment and assessments reveal that a student may require special support or where, after
enrolment, it is made apparent that the student requires special support, reasonable adjustments will be
made to the learning environment, training delivery, learning resources and/or assessment tasks to
accommodate the particular needs of the student. An adjustment is reasonable if it can accommodate the
student’s particular needs, while also taking into account factors such as the student’s views, the
potential effect of the adjustment on the student and others and the costs and benefits of making the
adjustment.
Any adjustments made must:

a. Be discussed, agreed and documented in the assessment record
b. Benefit the student.
c. Maintain the integrity of the competency standards and course requirements as stipulated in
the training package.
d. Be reasonable to expect in a
workplace. Reasonable adjustment may
consist of:
a. Providing additional time for students to complete learning and assessment tasks.
b. Presenting questions orally for students with literacy issues.
c. Asking questions in a relevant practical context.
d. Using large print material.
e. Extending the course duration.
f. Presenting work instructions in diagrammatic or pictorial form instead of words and sentences.
Complaints and appeals:
If you are dissatisfied with an assessment outcome, you may appeal the assessment decision. In the first
instance, you are encouraged to appeal informally by contacting the assessor and discussing the matter
with them. If you are dissatisfied with the outcome of such discussion, you may appeal further to either
the RTO Manager and/or CEO. If you are still dissatisfied, you may appeal formally and in writing to the
external body. For more information, refer to the Assessment Policy and the Complaints and Appeals
Policy and Procedures.
Assessor intervention:
Assessors will defer the assessment, if assessor identifies that you are not ready for the assessment.
Feedback will be given to you once assessor mark the assessment. (approximately within 14 days of
completing the assessment. If the assessor feels the assessment activities that might impact on
your safety or that of others, the assessor will stop the assessment immediately.
Plagiarism, cheating and assessment dishonesty:
TIV considers plagiarism and cheating as a serious misdemeanour. Evidence of plagiarism and cheating is
treated on a case by case basis and the consequences for students engaging in such practices may include
failure of the assessment or exclusion from the course. For more information, refer to TIV’s Assessment
Policy.
References
Student are required to provide reference of the sources of information. If it is from a website you should
quote website link, if it’s a textbook must quote the name of the textbook and publisher. If you are
quoting from the learner guide list the name of the guide.
Student Declaration:
I...................................................................................(Student Name)have read and understand the

information provided above and also understand and accept that any act of plagiarism and academic
dishonesty may have penalties including cancellation or suspension of my enrolment with TIV. I further
declare that:
 All assessment work submitted for this unit competency is my own original work and plagiarism
and collusion has not occurred.
 Assessment work has not been copied or submitted for any other unit/course.
 I have taken proper care and effort to ensure my work has not been copied by another person.
 I have retained a copy of this assessment for my own records in the event I have to reproduce my
work.
 I am aware that any assessment deemed unsatisfactory will require me to undergo reassessment
which may be different to the one originally submitted.
Student signature: ............................................................... Date: ....../....../.......

PART 2
Assessment Methods

Assessment Cover Sheet: Assessment Method 1
Student Detail
Student Id:
Student Name:
Group No:
Assessment Details
Unit of Competency SITXFIN004 Manage finances within budget
Assessment Method Knowledge Test
Due Date
Date of Submission
Assessment Outcome Satisfactory □ Not Satisfactory □
Assessor Name
Feedback
Student Plagiarism Declaration: By submitting this assessment to the college, I declare that this assessment task is original
and has not been copied or taken from another source except where this work has been correctly acknowledged. I have
made a photocopy or electronic copy or photograph of my assessment task, which I can produce if the original is lost.
Assessor Student
I declare that I have conducted a fair, valid, reliable and I have received, discussed and accepted the outcome as
flexible assessment with this student, and I have provided above for this assessment method and I am aware of
appropriate feedback. my appeal rights.
Check for Copying/Collusion Yes No

Check for Authenticity Yes No
Signature: .......................................................
Signature: ........................................................
Date: ..............................................................
Date: ................................................................
Assessment Method 1: Knowledge Test
Instructions for students:
 In this knowledge test, in each question there are four answers. You must mark the most
appropriate answer relevant to the question.
 You will have 1 hour to complete the knowledge test.
 This assessment will be conducted in the TIV classroom.
 This knowledge test is open book. However, you must list the reference sources that you referred to
complete this assessment.
 List the reference sources in the space given at the end of the assessment.
 You must Satisfactory answer to all the questions, given in this assessment to be deemed
satisfactory for the assessment.
 You must complete the Assessment cover sheet – Student detail section.
 Submit the assessment with completed assessment coversheet.
 You must use only BLUE OR BLACK PEN to complete this assessment task including to complete the
assessment cover sheets.
 Your HANDWRITING must be clear to read and understand by a third party. If not, your assessor will
mark the assessment as “Not Satisfactory”.
Resources required:
 Computer with internet connection to refer to various resources.
 Learner Guide- Unit – SITXFIN004 – Prepare and monitor budgets.
 Student Assessment Guide and a pen (organized by the student).
Planning the assessment

- Trainer/Assessor will provide a date for the assessment & brief the TIV assessment policy to
the students.
- Ensure you have access to all resources listed above, either printed copies or access via the
internet Recommended time to complete the assessment: 1 hour.
- Your assessor will set a time to provide feedback.
Evidence specifications:
At the end of the assessment, you will be required to submit the following evidence by the due date
specified by the assessor:
- You are required to submit a completed (ticked) multiple choice question listed in Knowledge test.
- Completed and signed cover sheet for assessment
Evidence submission:
- You must submit the hard copy of the assessment. If you unable to submit the hard copy
must discuss and agree the format with the assessor prior to the deadline.
- Your assessor will record the assessment outcome on the assessment cover sheet.
1. Which type of budget uses the previous period’s actual or budgeted figures as a basis for the next
budget?
(a) Incremental budget.

(b) Zero-based budget.
(c) Rolling or continuous budget.
(d) Cash analysis budget.
2. What are three examples of performance data that can be used when preparing budgets?
(a) Sales figures, average customer spend and timesheets.
(b) Fixed costs, indirect costs and liability costs.
(c) Interest rate percentages, capital financing rates and economic indicators.
(d) Labour rates, wage rates and penalty rates.
3. Which is an example of an external factor that might impact on your budget?

(a) Staff do not have the required selling skills to meet sales deadlines.
(b) The manager wants to add to the list of services currently offered by the organisation.
(c) Your department is unstaffed and this is affecting customer service levels.
(d) One of your major competitors in the area has closed down.
4. Why should colleagues be consulted and provided the opportunity to contribute to the budget
planning process?
(a) So they can’t complain later as they were asked to contribute and chose not to.
(b) It helps ensure budget targets are based on accurate information and are achievable.
(c) To make sure the budget targets meet everyone’s needs in the business, including staff and
management.
(d) To create a budget that is easily understood by everyone using it.
5. What information do you need to analyse prior to drafting a budget?

(a) Previous figures and variances.
(b) Previous experience of the person preparing the budget.
(c) Employee records and rosters.
(d) Supplier agreements.
6. What is the most reliable way to estimate income and expenditure?

(a) Refer to previous financial reports and ensure they’re supported with valid, reliable and
Relevant information.
(b) Speak to other managers and co-workers and calculate an average based on their estimates.
(c) Conduct industry research to calculate standard income and expenditure rates expected in
your type of business.
(d) Use your experience and prior knowledge to set realistic income and expenditure goals for
your team or department.
7. What must you always keep in mind when drafting a budget?
(a) The total profit you want to make.
(b) Organisational objectives.
(c) How many hours it takes to complete the budget.
(d) The benefits of using a paper-based record keeping system.
8. What presentation style would you use to clearly show a percentage comparison between different
sales options?
(a) Formal written report.
(b) Verbal presentation.
(c) Hands-on workshop.
(d) Graphical presentation.
9. What should you do before finalising the draft budget?

(a) Use your teamwork skills to negotiate the budget in consultation with colleagues.
(b) Make sure you’ve not overlooked the opportunity to delegate the responsibility to someone
else.
(c) Use your problem-solving skills to make several revisions before finalising any figures.
(d) Make sure the budget results in a net profit.
10. After consulting with colleagues, which modifications are you likely to incorporate before finalising
the budget.
(a) Agreed modifications that are likely to foster better working relationships amongst team
members regardless of budget results.
(b) Modifications that are quick and easy to make.
(c) Only modifications that everyone in every department agrees on.
(d) Agreed modifications that are viable, achievable and likely to enhance the performance of
the budget.
11. How should a budget be completed?

(a) As quickly as possible in a format that you’re familiar with.
(b) In a clear format within designated timelines.
(c) In teams of two or more people.
(d) Online or in consultation with an accountant.
12. Why are forecasted budget and actual figures compared regularly throughout, and at the end of
the budget period?
(a) To make sure the budget figures are accurate.
(b) So managers can change the budget figures to make sure they are not under or over budget
at the end of the period.
(c) To evaluate performance and determine if operational changes need to be made.
(d) To evaluate the efficiency of the budget planning process.
13. What types of financial commitments are included in budgets?

(a) Financial business goals and mission statements.
(b) Debts, utilities, food and beverage purchases.
(c) Weekly staff rosters and food and beverage purchase orders.
(d) Income gained from investments and distributed to shareholders.
Student Detail
Student Id:
Student Name:
Group No:
Assessment Details
Assessment Method Case study
Due Date
Date of Submission
Assessor Name
Feedback
Student Plagiarism Declaration: By submitting this assessment to the college, I declare that this assessment task is original
and has not been copied or taken from another source except where this work has been correctly acknowledged. I have
made a photocopy or electronic copy or photograph of my assessment task, which I can produce if the original is lost.
Assessor Student
I declare that I have conducted a fair, valid, reliable and flexible I have received, discussed and accepted the outcome as
assessment with this student, and I have provided appropriate above for this assessment method and I am aware of my
feedback. appeal rights.

Signature: .......................................................
Signature: ........................................................ Date: ..............................................................
Date: ................................................................
Assessment Method 2: Case study
Resources required:
 Computer with internet connection, MS Word, and MS Excel software.
 Learner Guide - Unit – SITXFIN004 Prepare and monitor budgets.
 Student Guide and a pen.
 Soft copies of the required templates.

 Trainer/Assessor will provide a date for the assessment & brief the TIV assessment policy to the
students.
 Ensure you have access to all resources listed above, either printed copies or access via the
internet.
 Recommended time to complete the assessment: 15 hours.
 Your assessor will set a time to provide feedback.
 You are required to submit the completed case study and required evidence. required as per each
task.
 Completed and signed cover sheet for assessment.
 You must submit the hard copy of the assessment. If you unable to submit the hard copy you
must discuss and agree the format with the assessor prior to the deadline.
 You must complete the project using a software as listed above.
 Your assessor will record the assessment outcome on the assessment cover sheet.
Instructions to students to complete the Case Study.
1. This assessment requires students to analyse the case study to calculate costs and prepare budgets
for an event.
2. This case study consists of two parts. Under each part there are several tasks to be completed by the
student:
Part 1- Prepare draft budgets, negotiate and adjust financial commitments.
Part 2 - Prepare a revenue budget and an income statement.
3. To be satisfactory in this assessment you must demonstrate all the skills satisfactory listed in the
marking guide in each part of this case study.
4. Your assessor will provide you the required templates to complete this assessment.
5. You must use suitable word processing and spread software’s to complete this project. You must use
spreadsheet software (MS Excel) to complete the budgets calculations.
6. Assessor will inform you the submission date for this assessment and the date and time to conduct
the negotiation meeting. It recommends allocating approximately 15 hours for this assessment. This
includes ½ hour for the negotiation meeting.
7. You could complete the assessment in classroom based, computer lab or self-paced. However, you
must complete Task 2.8 in Part 1 in a simulated environment organised by the assessor.
8. Ask your assessor, if you do not understand a question. Your assessor cannot tell you the answer.
He/She may be able to re-word the question for you.
9. If you have any special needs, you must inform your assessor before commencing the assessment.
10. You must use only black or blue pens to complete Task 2.8. Other tasks should be processed by
WORD and EXCEL. Recommended font sizes of the document should range between 10 and 14. Font
type could be Calibri, Arial, Times New Roman or Tahoma.
11. On completion, you are required to submit all tasks to your assessor.
12. The additional and specific instructions are listed under each part.
PART 1
Case study
You’ve been appointed as a project manager to organise and run a charity ball. The ball will be held in the
local town hall - a beautiful historic building in the centre of the shopping and business district. Your client
is a not-for-profit (NFP) organisation who wants a black-tie gala event with three - or four - course meals,
music, dancing and entertainment. There will be a charity auction throughout the evening to raise more
money for their cause. The ball will be held on the last Saturday in October. They hope to sell 500 tickets.
You are responsible to organise all food and beverages, a MC, entertainment, and music. The NFP
organisation will source all items for the auction.
The NFP organisation has two main goals: to hold a successful event and make a reasonable profit from
the ball and the auction. They hope to make this as an annual event as money raised can significantly
boost their ability to provide aid to the community.
As part of the planning process, you must prepare a number of budgets to help achieve these goals. The
first stage of your planning process is to calculate expenses to determine the final selling price for the ball
tickets. An initial estimated figure of $150 to $200 per ticket has been discussed. You must confirm if this
is an appropriate price to determine anticipated profits for the organisation. You will report your initial
budgets to an event committee from the NFP organisation.
Instructions to complete the assessment.
1. Read the scenario information provided.

2. Complete Tasks 1, 2 and 3 in this assessment.
3. You can use accounting software to complete budget preparation tasks.
Task 1: Write the responses based on the case study
Q1.
Contents Your responses
To hold a successful event and make a reasonable profit from the ball
and the auction. They hope to make this an annual event as money
raised can significantly boost their ability to provide aid to others
a. List two of the charity
organisation’s goals and
objectives for this event.
Depending on these estimates, budgets are classified into three

categories-balanced budget, surplus budget and deficit budget.
b. What budgets do you need

to prepare to help you
achieve these goals?
External
1. These external factors can be broadly categorized as the
social and cultural.
2. technological
3. economic
4. political and legal environments.

c. Describe four external and
internal factors that might
affect the event and your
Internal
budgets.
1.Corpo
rate
culture
2.Stafing
3.Finance
4.Current technology
Q2. What types of data or information will assist you in the preparation of your budgets?
Where could you find it?
Information/data required Sources
Q3. The event committee from the NFP organisation wants to be involved in the planning process. What
techniques can you use to enable them to contribute to budget planning processes, negotiate changes
and inform them of budget decisions?
A full understanding of the budget planning and preparation system is essential, not just to derive
Expenditure projections but to be able to advise policymakers on the feasibility and desirability of
Specific budget proposals, from a macroeconomic or microeconomic perspective. It is much easier
to control government expenditures point of budget preparation than later during the execution of budget.
Task 2: Prepare budgets
Instructions to students:
1. Read the scenario and information provided.

2. Complete Task 2.1 - 2.10 listed below.
3. All templates have been provided in the questions are draft only. You must use the softcopy of
“Template A” given by the assessor to complete these tasks.
After conducting extensive research, you’ve obtained quotes from suppliers for the following items:
Quotes from suppliers
Expense item Quote ($) Comments

Venue hire 3,500.00 Main hall and stage
Postage/stationery 350.00
Telephone 350.00
Event uniforms (F&B only) 750.00 Printed event t-shirt for service staff
Floral arrangements 3,900.00 6 x large stands, 42 x table centres
Lighting and stage hire 6,900.00 Stage, spot, dance floor.
Microphones, projector, screens, sound systems for
Audio-visual equipment hire 4,500.00
entertainment.
F&B equipment hire 1,790.00 Food preparation and service equipment
MC 800.00 Six hours including auction
Consultant fees 3,500.00
Task 2.1: Calculate linen expenses

One of the expenses incurred will be for the hire of linen for the event. Calculate linen expenses by
completing the shaded fields in the table below.
Template A - Task 2.1: Calculate linen expenses

Price per item
Linen type Quantity Cost $
$
693
Round tablecloths 16.5 42
165
Trestle tablecloths 16.5 10
483
Table overlays 11.5 42
900
Napkins 1.8 500
3000
Chair covers 6 500
5241
Total linen hire costs
Task 2.2: Prepare an expense budget

Use the quotes from suppliers and your calculations, prepare an expense budget for the event by
completing the shaded fields in the table below.
Template A - Task 2.2: Prepare an expense budget
Expense budget
Expense item $
3500
Venue hire
350
Postage/stationery
350
Telephone
750
Event uniforms (F&B only)
3900
Floral arrangements
6900
Lighting and stage hire
4500
Audio-visual equipment hire
1790
F&B equipment hire
800
MC
3500
Consultant fees
5241
Linen hire
31581
Total expenses
Task 2.3: Calculate food and beverages costs
1. Use the information below, calculate F&B labour costs incurred from the hospitality labour hire
company for the event.
2. All cooks, kitchen assistants, kitchen hands, food and beverage waiters, and bar attendants will be
hired for this event. The costs quoted by the company include all penalties, workers’ compensation,
WorkCover and other on-costs. However, there is an additional overtime penalty of $10 per hour for
all hours worked after the first eight hours of any given day.
3. Note: all staff can enjoy paid meal break.
4. You need staff over a two-day period:

Friday – room setup and food
preparation
Saturday – setup and delivery of service on the day of the event.
Job role No. of staff Rostered hours per person Pay rate per hour
Friday Saturday
Friday Saturday
$ $
Cook A 2 8 8 30.00 35.00
Cook B 2 8 10 30.00 35.00
Kitchen assistant 2 6 8 20.00 25.00
Kitchen hand 2 8 20.00 25.00
F&B waiter A 7 8 8 25.00 30.00
F&B waiter B 16 8 25.00 30.00
Bar attendant A 2 6 6 25.00 30.00
Bar attendant B 1 9 25.00 30.00
Template A - Task 2.3: Calculate F&B labour costs
Complete the shaded fields in all tables: (Round your figures to two decimal places.)
F&B labour costs

Wages per
Job role Wages No. staff Total wages
person
Friday Saturday Overtime
$ $
$ $ $
240 280 520 1040
Cook A ------ 2
240 370 90 610 1220
Cook B 2
120 200 ------ 320 640
Kitchen assistant 2
200 ------ 200 400
Kitchen hand ------ 2
200 240 ------ 440 3080
F&B waiter A 7
240 ------ 240 3840
F&B waiter B ------ 16
150 180 ------ 330 660
Bar attendant A 2
280 --- 280 280
Bar attendant B ------ 1
11160
Total F&B labour costs

Task 2.4: Calculate total labour costs
1. Use the information provided, calculate the total labour costs incurred from the hospitality labour
hire company for the event.
2. In addition to F&B labour hire costs, you have also employed one event supervisor A and one event
supervisor B for the event. These are staff you have recruited personally, and you pay a flat rate for
the two days of $40.00 per hour. You anticipate they will both work 12 hours each day.
3. Security is also required for the event. There will be two crowd controller/security staff employed
through another staffing agency. You will need 24-hour security from 3 pm Friday due to some of the
charity auction items being stored at the venue overnight. Their hourly rate is $40.00 on Friday and
$50.00 on Saturday and Sunday.
4. Note: all staff can enjoy paid meal break.
No. of
Job role Rostered hours per person Pay rate per hour
staff
Friday Sat/Sun
Friday Saturday
$ $
Security A 1 3pm to 11pm 3pm to 11pm 40.00 50.00
Security B 1 11pm to SAT 7am 6pm to SUN 2am 40.00 50.00
Security C 1 7am to 3pm 40.00 50.00

Template A - Task 2.4: Calculate total event labour costs
Complete the shaded fields in the table below:
Job roles Friday $ Saturday $ Sunday $ Total wages $

240 480 720
Event Supervisor A ------
240 480 720
Event Supervisor B ------
120 240 360
Security A ------
110 220 0.00 330
Security B
200 300
Security C 100 ------
Total F&B labour costs

2430
Total event labour costs
Task 2.5: Calculate food costs
1. Use the information provided, calculate the total food costs and cost per head for the event.
2. Calculate food cost per head based on anticipated sales of 500 tickets.
3. A four-course meal with wine, beer, soft drinks and juices is included in the ticket price.
4. Meals will be served on a 50/50 basis except for the tapas appetiser, which is a shared platter.
5. Staff and entertainers will be provided main course only. There will be 60 meals for them which are
complimentary. Therefore, their costs must be included in the food costs.
Template A - Task 2.5: Calculate food costs
Complete the shaded fields in the table below: (Round your figures to two decimal places.)
Cost per
No. serves required Food cost $
platter $
Appetiser (Shared)
1229.00
Tapas platter 9.76 3 per table x 42 tables
Appetiser (Individual)
1460.00
Warm tandoori beef salad 5.84 250
990.00
Stuffed agnolotti parcels 3.96 250
Main
2304.00
Mediterranean chicken breast 8.23 280
2578.80
Mustard and macadamia rack of lamb 9.21 280
Dessert
812.50
White and dark chocolate torte 3.25 250
773.50
Marinated strawberry roulade 2.95 250
Others
150.00
Tea/coffee 0.3 500
200
Petits fours 0.4 500
10462.96
Total food costs
20.93
Food cost per head
Task 2.6: Calculate beverage costs
1. Use the information provided, calculate the total beverage costs and cost per head for the event.
2. Calculate beverage cost per head based on anticipated sales of 500 tickets.
3. Beverages for the event dinner include a variety of red and white wines to match each course, bottled
light and heavy beer, soft drinks and orange juice.
Template A - Task 2.6: Calculate beverage costs
Complete the shaded fields in the table below: (Round your figures to two decimal places)
Forecasted Beverage cost

Beverage item Cost per item
requirements $
1135.80
Sparkling wine $12.62 per bottle 90
1467.00
Sauvignon blanc $14.67 per bottle 100
1584.00
Chardonnay $13.20 per bottle 120
1567.00
Botrytis Riesling $19.59 per half bottle 80
788.40
Merlot $9.83 per bottle 80
841.60
Shiraz $10.52 per bottle 80
1529.20
Cabernet sauvignon $13.90 per bottle 110
321.30
Light beer (750 ml) $4.59 per bottle 70
191.60
Heavy beer (750 ml) $4.79 per bottle 40
64.00
Soft drink 0.16 per serve 400
44.00
Juice 0.22 per serve 200
9531.90
Total beverage costs
19.06
Beverage cost per head
Task 2.7: Prepare event budgets
1. Use the information provided and the results of the previous tasks, prepare event budgets for the
event.
2. The event committee has asked you to prepare two alternative event budgets based on two different
ticket selling prices: $175.00 or $200.00. They want to determine the most feasible and profitable
alternative for their organisation.
3. Costs for additional expenses need to be included in the revenue statement budgets. They are
calculated as a fixed percentage of total revenue from ticket sales.
Additional expenses % of sales

Advertising 1%
Printing 0.25%
Room decoration 3%
Entertainers 5%
Template A - Task 2.7: Prepare event budgets

Complete the shaded fields in the table below: (Round your figures to two decimal places)
Alternative event Alternative event

% of sales % of sales
budget 1 budget 2
28%
500 tix x $175.00 500 tix x $200.00
$ % $ %
Sales
87500 100000
Ticket sales ------
Less cost of goods sold

10462.96 11.96% 11960 11.96%
Food costs
620.90 0.71% 710 0.71%
Beverage costs
11083.86 12.67% 12670 12.67%
Total cost of goods
76416.14 87.33% 87330 87.33%
GROSS PROFIT
Less expenses
14990.00 17.13% 17130 17.13%
Labour costs
3500 4.00% 4000 4.0%
Venue hire
350 0.40.% 400
Postage/stationery
350 0.40% 400
Telephone
750.00 0.86% 860
3900.00 4.46% 4460
Floral arrangements
5900.00 6.74% 6740
Lighting and stage hire
Audio-visual equipment 3500 4.00% 40000
hire
0.00 0.00% 0.00
F&B equipment hire
800 0.91% 910
MC
3500 4.00% 4000
Consultant fees
26.25 2.01% 2.01
Linen hire
437.50 3.00% 1
 Advertising
3000 0.50% 0.25
 Printing
3000 3.43% 3
 Room
decorations
4375.00 5.00% 5
 Entertainers
49735.00 56.84%
Total expenses
26680.64 32.02%
PROFIT/LOSS
Task 2.8: Negotiate the budgets with the event committee

1. You are required to negotiate the budgets prepared in Task 2.7 with the event committee from the
NFP organisation. The purpose of the negotiation is to reduce the expenses and maximise the
profits.
2. You will conduct the negotiation meeting in a simulated environment, organised by the assessor.
There may be two to three members participating for the meeting.
3. Provide budget copies and brief the budgets to the event committee.
4. Linen hire expenses are to be reduced because chair covers, and overlays will not
be used for the event.
5. A major liquor supplier has informed the event committee that they were happy to supply wine for
the event for free. In return supplier requested to promote their products by printing on the event
tickets.
6. The following topics to be negotiated during the meeting. You must document the agreed outcome of
the negotiation in the template below:
Topics to be Negotiated Agreed outcome of the negotiation meeting
Linen expenses
Offer from the liquor

supplier
Task 2.9: Adjust financial commitments
1. Use the information provided, recalculate linen and beverage expenses.
2. After meeting with the event committee and discussing potential methods of reducing expenses and
maximising profits, the following decisions have been made:
 Linen hire expenses are to be reduced because chair covers, and overlays will not be used for the
event.
 The event committee accepted an offer from a major liquor supplier to supply all wine for the
event in return for acknowledgement on printed materials, such as menus, posters and banners.
Template A -Task 2.9: Adjust financial commitments
Complete the shaded fields in the tables below: (Round your figures to two decimal places.)
Linen hire
Price per item Cost

Linen type Quantity
$ $
693.00
Round tablecloths 16.5 42
165.00
Trestle tablecloths 16.5 10
900.00
Napkins 1.8 500
1758
Total linen hire costs
Beverage costs
Forecasted Beverage cost

Beverage item Cost per item
requirements $
321.3
Light beer (750 ml) $4.59 per bottle 70
191.6
Heavy beer (750 ml) $4.79 per bottle 40
64
Soft drink $0.16 per serve 400
44
Juice $0.22 per serve 200
690.9
Total beverage costs
1.38
Beverage cost per head
Task 2.10: Prepare adjusted event budget

1. Use the information provided and the results of the previous tasks, prepare an adjusted event budget
for the event to reflect all new calculations and decisions made by the event committee.
2. The event committee has made the following decisions:
a. Ticket prices are set at $175.00 per person unless profits are below $25,000 in the final budget.
b. The advertising allowance is to be raised to 3% and printing to 0.5%.
c. Entertainers has offered its services for free as a donation to the charity.
d. Room decoration expenses will be increased to $3,000.
e. Lighting and stage hire, and audio-visual expenses are to be decreased by $1,000 each.
f. F & B equipment’s supplier is now offering all equipment for free for the same
acknowledgements as the liquor supplier.
Template A - Task 2.10: Prepare adjusted event budget
Budget % of sales
500 tix x $175.00
$ %
Sales
87500.00
Ticket sales ------

10462.96
Food costs
620.90
Beverage costs
11083.86
Total cost of goods sold
76416.14
GROSS PROFIT
Less expenses
14990.00
Labour costs
3500.00
Venue hire
350.00
Postage/stationery
350.00
Telephone
750.00
3900.00
Floral arrangements
4900
Lighting and stage hire reduced
1000
2500
Audio-visual equipment hire
reduces 1000
0.00
F&B equipment hire
800
MC
3500
Consultant fees
26.25
Linen hire
424.37
Advertising 3%reduces
2985
Printing 5%reduces
6000
Room decorations increased
3000
4375
Entertainers
Total expenses
PROFIT/LOSS
Task 3: Write the responses to the following contents
Answer Q1 to Q4 based on Task 2.7.
Contents Your response

1. What are the proper ways to present the Determine your event and an overall budget.
draft revenue budgets to the event Evaluate past events.
Research to understand the industry.
committee and other relevant parties?
Create a high-level plan.
2. Why should you circulate a draft budget to By comparing expenditures and revenues, it then becomes possible to
the members of the events committee? forecast the financial outcome of the event. The prediction of financial
outcomes of the event need to take place very early in the planning
stages.
3. Do you think either of the budget options Yes

presented meets the charity organisation’s
stated goals?
Why/why not?
4. What recommendations would you make to The Number of Tickets Sold and Check-Ins.
the event committee to help them achieve Post-Event Surveys.
Social Media Engagement.
their goals?
Revenue Generated.
Sponsors Satisfaction Surveys
5. Once the final budget has been approved, Once the budget has been finalized and approved, the final step of the
what information do you need to budgeting process is to distribute the allocated funds to the various
departments and business segments. Typically this is the duty of a
communicate to your team, the event
chief financial officer or company controller.
committee, internal ticket sales staff and
external agencies about the final budget?
Once you’ve prepared everything going on around the event, keeping
6. After the event, you have to prepare a report
for the event committee on the outcomes track of the order of the event itself and planning out your program is
the next step.
of the gala ball. What should your report
To ensure you’re prepared for anything, prepare an agenda that will
include? walk you through the whole day from setup to cleanup. Including
every detail, no matter how small, will help you feel like you have it
all under control
7. The NFP organisation are very happy with Save budget try improve more to get more profit next year
the outcomes from the gala ball and want
to hold it again next year. What information
would you collect and record to assist in
preparing budgets for next year’s event?
PART 2
Case study
Mario’s Delicatessen is situated in a major shopping centre between two well-known supermarket chains
and is open seven days a week from 8.30 am to 6 pm. The delicatessen offers an international range of
fresh, frozen and pre-packaged products and specialty breads. It sells a range of whole roasted coffee
beans and has a small café that makes the best espresso coffees in the shopping centre.
Three brothers are equal partners in the business and share the workload, with all other staff employed
as casuals.
The business has been operating at a food cost of 20% and beverage cost of 18% for the past 12 months.
However, in this year budget, the brothers want to reduce their cost of goods sold by bringing food costs
down to 16% and beverage costs to 14%. They plan to source new suppliers for their products, reduce
wastage with better stock rotation and careful attention to use-by dates. They will discontinue some of
their more expensive product lines.
The expense budget includes an increase in utilities costs of around 12%. New procedures are going to be
put into place to reduce electrical and gas usage to try to reduce the impact of the price rise.
Casual wage rates are also expected to rise and this has been factored into the budget.
One of the supermarkets will undergo a major renovation from July to September. As the supermarket
will still be operating during the renovation period, the brothers believe this should have no effect on
sales in the deli, so no adjustments to the sales budget have been made.
Mario’s Delicatessen Sales budget 3rd quarter 20XX

July Aug Sept TOTAL
$ $ $ $
Sales
Food 22,500.00 $26,875.00 27,930.00 77,305.00
Beverage 8,050.00 9,060.00 11,090.00 28,200.00
TOTAL REVENUE 30,550.00 35,935.00 39,020.00 105,505.00
Mario’s Delicatessen Expense budget 3rd quarter 20XX
July Aug Sept TOTAL
$ $ $ $
Wages 16,250.00 16,250.00 16,250.00 48,750.00
Rent 2,840.00 2,840.00 2,840.00 8,520.00
Gas & electricity 1,830.00 1,830.00 1,830.00 5,490.00
Accounting 1,250.00 1,250.00 1,250.00 3,750.00
Insurance 1,500.00 1,500.00 1,500.00 4,500.00
Other overhead expenses 1,900.00 1,900.00 1,900.00 5,700.00
TOTAL EXPENSES 25,570.00 25,570.00 25,570.00 76,710.00
Instructions to students:
1. Read the scenario and information provided.

2. Complete Task 1, 2, and 3 listed below.
3. Templates in Task 1 and Task 2 provided in the questions are draft only. You must use the softcopy of
“Template B” given by the assessor to complete Task 1 and Task 2.
Task 1: Prepare a sales budget
Template B - Task 1: Prepare a sales budget

Mario’s Delicatessen Sales budget 3rd quarter 20XX
July Aug Sep Total
$ $ $ $
Sales
Food 22,500.00 26,875.00 27,930.00 77,305.00
Beverage 8,050.00 9,060.00 11,090.00 28,200.00
TOTAL INCOME 30,550.00 35,935.00 39,020.00 105,505.00
Less costs of goods sold

14844.60 12368.80 -2475.80 0.17
Food purchases
4070.93 3948.00 122.93 0.03
Beverage purchases
1895.14 16316.80 2598.73 0.014
Total costs of goods sold
83462.48 89188.20 5725.72 0.07
GROSS PROFIT
Less expenses
Wages 16,250.00 16,250.00 16,250.00 48,750.00
Rent 2,840.00 2,840.00 2,840.00 8,520.00
Gas & electricity 1,830.00 1,830.00 1,830.00 5,490.00
Accounting 1,250.00 1,250.00 1,250.00 3,750.00
Insurance 1,500.00 1,500.00 1,500.00 4,500.00
Other overhead expenses 1,900.00 1,900.00 1,900.00 5,700.00

75880.00 76710.00 830.00 0.1
Total expenses
7582.48 12478.20 4895.72 0.65
PROFIT/LOSS
Task 2: Prepare an income statement
Use the information provided and the results of Task 1, prepare an income statement for Mario’s
delicatessen.
Template B - Task 2: Prepare an income statement

Mario’s Delicatessen Income statement analysis 3rd quarter 20XX

Actual Budget Variance Variance
Jul to Sep Jul to Sep $ %

$ $
Sales
Food 73,223.00
Beverage 29,155.00
TOTAL INCOME 102,378.00
Food purchases 14,844.60
Beverage purchases 4,070.93
Total cost of goods sold 18,915.53
GROSS PROFIT 83,462.48
Less expenses
Wages 46,555.00
Rent 8,520.00
Gas & electricity 5,125.00
Accounting 3,777.00
Insurance 4,335.00
Other overhead expenses 7,568.00
Total expenses 75,880.00
PROFIT/LOSS 7,582.48
Task 3: Write the responses to the following contents
Your responses must be based on the outcomes from Task 1 and Task 2.
Contents Your responses

1. What information The statement displays the company's revenue, costs, gross profit, selling and
contained in the income administrative expenses, other expenses and income, taxes paid, and net profit in
statement are important a coherent and logical manner.
performance indicators for
the business?
2. Which variances are Favorable Unfavorable
favorable and unfavorable
results for the business? PROFIT LOSS
Give three examples of LOW COST HIGHER THE COST
each ACCURACY OF BUDGET BUDGET DOESN’T MATCH
3. What could be the possible External Internal

causes of the budget Comparisons of actual to budgeted The variance can be favorable, when
variances? Consider what results allows you to consider whether the actual results are better than
changes to the internal or corrective action is needed. The expected.
external environment might difference between the actual results
have contributed to the and budgeted results is called the
deviations. variance.
4. What actions could the When revenue is higher than the budget or the actual expenses are less than the budget,
brothers take to reduce the this is considered a favorable variance. Unfavorable variances refer to instances when
costs are higher than your budget estimated they would be. Budget variances that can be
possibility of the
controlled are usually expenses. Some expenses may not be able to be altered in the short
unfavorable variances term, but most expenses can be eliminated without impacting your company’s profits.
occurring again?
5. What adjustments might 1. Keep Budgeting and Forecasting Flexible

need to be made when
preparing future budgets as 2. Implement Rolling Forecasts and Budgets
a result of the outcomes of 3. Budget to Your Plan
this budget?
4. Communicate Early and Often
5. Involve Your Entire Team
To be completed by the assessor

Marking guide
Did the learner successfully demonstrate Satisfactory

evidence of their ability to do the following? If not satisfactory please comment
Yes No
Case Study – Part 1
Determine and confirm scope and nature of

□ □
required budgets
Analyse internal and external factors for potential

□ □
impact on budget
Provide opportunities for colleagues to contribute

□ □
to budget planning process
Is able to calculate the linen expenses accurately

□ □
based on the given information
Is able to prepare an expense budget for for the

□ □
event based on the quotes provided by the suppliers
Is able to calculate the total food and beverage,

wage costs incurred from the labour hire company □ □
for the event
Is able to calculate the total food and beverage

wage costs incurred from the labour hire company
□ □
for the event based on the given addition
information.
Is able to calculate the total food costs and cost

□ □
per head for the event
Is able to calculate the total beverage costs and

□ □
cost per head for the event
Is able to prepare event budgets for the event. □ □

Did the learner successfully demonstrate Satisfactory
evidence of their ability to do the following? If not satisfactory please comment
Yes No
Is able to propose suggestions to reduce the

expenses and maximise the profits, □ □
Is able to present suggestions and

□ □
recommendations in a clear format.
Is able to provide a copies of the line and event

□ □
budgets to each committee member.
Is able to recalculate linen and beverage

□ □
expenses based on the information provided.
Is able to prepare an adjusted event budget for the

gala ball that reflects all new calculations and □ □
decisions made by the event committee
Part B
Is able to Prepare a revenue budget based on

the information provided. □ □
Is able to prepare an income statement for Mario’s

delicatessen based on the information provided and □ □
the results of task 1.
Student Detail
Student Id:
Student Name:
Group No:
Assessment Details
Assessment Method Written Test
Due Date
Date of Submission
Assessor Name
Feedback
Student Plagiarism Declaration: By submitting this assessment to the college, I declare that this assessment task is
original and has not been copied or taken from another source except where this work has been correctly
acknowledged. I have made a photocopy or electronic copy or photograph of my assessment task, which I can produce if
the original is lost.
Assessor Student
I declare that I have conducted a fair, valid, reliable and I have received, discussed and accepted the
flexible assessment with this student, and I have outcome as above for this assessment method
provided appropriate feedback. and I am aware of my appeal rights.

Signature: .......................................................
Signature: ........................................................
Date: ..............................................................
Date: ................................................................
This page has been intentionally left blank
Assessment Method 3: Written Test
Instructions for
students:
 In this written test there are twenty-seven questions. You must Satisfactory answer to all the
questions, given in this assessment to be deemed satisfactory for the assessment.
 It is recommended to spend 2 hours to complete the written test.
 This assessment will be conducted in the TIV classroom. You could complete the assessment
outside the campus. In this case you must confirm to the assessor, that you have access to the
above resources.
 This written test is open book. However, you must list the reference sources that you referred to
complete this assessment.
 List the reference sources in the space given at the end of the assessment.
 You must complete the Assessment cover sheet – Student detail section.
 Trainer/Assessor will inform you the submission date.
 Submit the assessment with completed assessment coversheet.
 You must use only BLUE OR BLACK PEN to complete this assessment task including to complete the
assessment cover sheets.
 Your HANDWRITING must be clear to read and understand by a third party. If not, your assessor will
mark the assessment as “Not Satisfactory”.
Resources required:
 Computer with internet connection to refer to various resources.
 Learner Guide- Unit – SITXFIN004 Prepare and monitor budgets.
 Student Guide and a pen (organized by the student).

- Trainer/Assessor will provide a date for the assessment & brief the TIV assessment policy to
the students.
- Ensure you have access to all resources listed above, either printed copies or access via the internet
Recommended time to complete the assessment: 2 hours.
- Your assessor will set a time to provide feedback.
- You are required to submit a completed written test.
- Completed and signed cover sheet for assessment
You must submit the hard copy of the assessment. If you unable to submit the hard copy must discuss
and agree the format with the assessor prior to the deadline.
Your assessor will record the assessment outcome on the assessment cover sheet.
Instructions for Q1 to Q7
There are many types of budgets to prepare and monitor in any organisation. Read the descriptions of
various types of budgets in Q1 to Q8. Use the correct terminology to state which type of budget
has been described.
Q1: These budgets are based on information from the sales and operational budgets. They predict the
movement of readily available funds into and out of the business.
All revenues and expenses your company expects to use for its operations. Operating budgets typically break down
things like fixed and variable costs, revenue, and other expenses.
The operating budgets include the budgets for sales, manufacturing costs (materials, labor, and overhead) or
merchandise purchases, selling expenses, and general and administrative expenses.
The sales budget then calculates the amount of income it will earn from sales activities over the coming time period.
The production budget uses the data from the sales budget to calculate the number of products the company has to
produce over the period of time.
Q2: These budgets outline the targets for a division of a large organisation for the entire period. They are
supported by other more detailed budgets, which could give breakdowns of how those sales
figures are to be achieved. They are used to plan other budgets.
Select a Period for the Budget.
Gather Sales Prices.
Pull Historical Sales Data.
Look at Industry Benchmarks.
Factor in Market Trends.
Take the Size of Your Sales Team Into Account.
Consider Any Changes to Your Business Model.
Q3: These budgets are developed for a specific task, goal or planned occasion such as renovations, an
annual function, extensions, etc. You need data from them to plan other budgets.
Every project boils down to money. If you had a bigger budget, you could probably get more people to do your project
more quickly and deliver more. That’s why no project plan is complete until you come up with a budget. But no matter
whether your project is big or small, and no matter how many resources and activities are in it, the process for figuring
out the bottom line is always the same.
Q4: These budgets comprise a series of smaller budgets which are then accumulated into an overall
budget. The smaller budgets focus on specific areas (such as food, beverages, equipment, cleaning
products or linen).
Prime cost is made up of the cost of goods sold, the food and beverage inventory you purchase to make the menu
items you sell) and your labor costs. Prime cost is the largest expense for a restaurant, which means it is the most
essential piece of your budgeting.
Q5: These are the most important budgets. They can determine whether the business makes a profit or
loss and are often the starting point for all other budgets.
Master budget. A master budget is an aggregate of a company's individual budgets designed to present a complete
picture of its financial activity and health.
Operating budget.
Cash flow budget.
Financial budget.
Static budget.
Q6: These budgets are a comprehensive amalgamation of all operational and financial budgets. Projected
revenue and expenses figures from all the other budgets are accumulated to give a global picture
of the business’s target for that period.
Four Main Types of Budgets/Budgeting Methods. There are four common types of budgets that companies use: (1)
incremental, (2) activity-based, (3) value proposition, and (4) zero-based. These four budgeting methods each have
their own advantages and disadvantages, which will be discussed in more detail in this guide.
Q7: These budgets summaries the anticipated revenue and expenses for a budget period, usually a fiscal
quarter or year.
 Cash
 Flow budget
Q8: Briefly explain the role and nature of budgets.

Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this
spending plan allows you to determine in advance whether you will have enough money to do the things you need to
do or would like to do. Budgeting is simply balancing your expenses with your income.
Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this
spending plan allows you to determine in advance whether you will have enough money to do the things you need to
do or would like to do. Budgeting is simply balancing your expenses with your income.
Q9: There are two main budget formats. Briefly describe the difference between them.
Fixed (static) budget
A static budget forecasts revenue and expenses over a specific period but remains unchanged even with changes in
business activity. Static budgets are often used by non-profit, educational, and government organizations.
Flexible (variable) budget
A flexible budget adjusts to changes in actual revenue levels. Actual revenues or other activity measures are entered
into the flexible budget once an accounting period has been completed, and it generates a budget that is specific to
the inputs. The budget is then compared to actual expenses for control purposes.
Difference
Fixed budget is a plan for a single level of sales (or other measure of activity), while a variable budget consists of
several plans, one for each of several levels of sales (or other measure of activity).
Q10: Part of the budget process is reporting on performance, the results from the various budgets used,
and analyzing the information you’ve gained from them. List four examples of the type of financial
reports you need to prepare after reviewing budget performance.
(1) Balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity.
Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how
much money a company made and spent over a period of time.
Q11: A budget cycle covers a single year. What are the three different types of ‘year’ used when preparing
Budgets? List their names and appropriate time period.
A budget cycle is the time frame a budget covers, with companies using monthly, quarterly and/or annual budget
cycles to control costs and streamline administrative duties. Companies are also regular users of budget cycles to help
them control costs. Understanding the purpose of a budget cycle and the types used will help you decide how to
implement one or more for your overall business or across your departments.
1. Monthly
2. Quarterly
3. Yearly are the three budgets types
Q12: Briefly explain how the features and functions of accounting software programs assist you in
preparing and monitoring budgets.
Accounting software is a tool to help you record the flow of your company's money and examine
your financial condition. With it, you can record transactions, generate reports, manage
customer and vendor contacts, create purchase orders, track stock levels, bill customers,
and monitor account balances.
Instructions for – Q13 to Q23

Preparing and monitoring budgets successfully requires researching and collecting accurate data.
List at least two types of information you would collect when researching the topics in Q13 to Q23.
Q13: Competitor research

 How much do my competitors spend on advertising?
• Which channels are my competitors advertising on?
• Is there advertising seasonality in my category?
Q14: Suppliers
Organisation that provides a product or service to another business. A packaging recipe is similar to a formula, but
rather than describing the proportion of ingredients, it specifies how the finished product gets to its final assembly. A
packaging recipe addresses such things as containers, labels, corrugated cartons, and shrink-wrapping. In process
manufacturing, the finished product is usually produced in bulk, but is rarely delivered in bulk form to the customer.
Q15: Declared commitments in areas of operation.

Favorable
Q16: Financial information from suppliers
Favorable
Q17: Financial proposals from key stakeholders
Proposals are favorable
Q18: Income for previous time periods

Income was less in previous time period.
Q19: Expenditure for previous time periods

Expenditure for previous time period was higher.
Q20: Grant funding guidelines or limitations

Grant funds are usually used to finance the investigation of a business concept, provide working capital for ramping-up
a business or other purpose. Grant funds can be used to supplement existing funds which may include funds provided
by the farm group itself.
Q21: Management policies and procedures

Q22: Organisational budget preparation guidelines
 Update Budget Assumptions.
 Review Bottlenecks.
 Available Funding.
 Step Costing Points.
 Create Budget Package.
 Issue Budget Package.
 Obtain Revenue Forecast.
 Obtain Department Budgets
Q23: Performance information from previous periods
Identify significant variances. A budget variance is the difference between a budgeted amount and an actual amount of
expenses or revenue.
Analyze budget variances.
Determine if the budget needs to be revised during the year.
Q24: Can you use the same techniques for making budget estimates in all revenue-generating areas of a
business? Why or why not?
No because it is purely based on different figures.
Q25: A business’s laundry costs are $1,450 below budget. What is a possible cause for this deviation?
Budget variances can occur broadly due to either controlled or uncontrollable factors. For instance, a poorly planned
budget and labor costs are controllable factors. Uncontrollable factors are often external and arise from occurrences
outside the company, such as a natural disaster.
Three possible courses are
1. A budget variance is an accounting term that describes instances where actual costs are either higher
or lower than the standard or projected costs.
2. An unfavorable, or negative, budget variance is indicative of a budget shortfall, which may occur
because revenues miss or costs come in higher than anticipated.
3. Variances may occur for internal or external reasons and include human error, poor expectations, and
changing business or economic conditions.
Q26: A hotel’s average room rate is 15% above budget. List two possible causes for this deviation.
1. The cost is more (or less) than budgeted. Budgets are prepared in advance and can only ever estimate income
and expenditure.
2. Planned activity did not occur when expected.
Q27: You are managing budget deviation. List three things you would assess to decide whether or not to
further investigate a deviation.
 Budgeting is a complex process, which is becoming increasingly affected by the company's environment.
 Use data on the market environment.
 Define the market, competition and substitutes.
List the reference resources.

Student End of Unit Feedback Form
The purpose of this evaluation is to obtain your feedback on the content, delivery and assessments of the unit of
competency provided by Technical Institute of Victoria (TIV). Your response will be treated in strict confidence and
will assist us to review and improve our delivery.
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RTO No:21994 CRICOS CODE 02924F Page 1 of 62

This page is intentionally left blank

SITXFIN004 –Student Assessment Guide Page 2 of 62

Student Signature: Date:

ASSESSMENT RECEIVED BY TIV Staff

================================= Tear Here ===========================

Students must retain this as a Record of Submission.

Unit Code & Description: SITXFIN004 - Prepare and monitor budgets

TIV Staff Name: ………………...……..............……...……... Student ID: .................................................................

Signature: …………………………...……...……...…………..…... Student Signature: ….………………………………………..…….

To be fill by the Student

Assessor Use OnlyFirst attemptRe-SubmissionLate Submission

Unit Outcome:  Competent  Not Yet Competent

Student’s Signature: Assessor’s Signature:

Name: Signature Date

The Student Guide contains two (2) parts:

PART 1: Assessments information:

 Application of the unit of competency

PART 2: Assessment Methods and Tasks:

1. Prepare budget information.

Numeracy skills to:  draft budgets that meet organisational objectives

Context and conditions for assessments:

SITXFIN004 –Student Assessment Guide Page 11 of 62

- Computers with access to internet and printers

SITXFIN004 –Student Assessment Guide Page 12 of 62

Assessment Assessment description Due date Location of

Outline of evidence to be collected:

 Completed knowledge test and submit to your assessor.

SITXFIN004 –Student Assessment Guide Page 13 of 62

The assessments are intended to be equitable, fair and flexible.

Recording an assessment result:

SITXFIN004 –Student Assessment Guide Page 14 of 62

SITXFIN004 –Student Assessment Guide Page 15 of 62

For assessment methods:

Student access to records:

Any adjustments made must:

I...................................................................................(Student Name)have read and understand the

Student signature: ............................................................... Date: ....../....../.......

SITXFIN004 –Student Assessment Guide Page 19 of 62

Check for Copying/Collusion Yes No

Planning the assessment

(a) Incremental budget.

3. Which is an example of an external factor that might impact on your budget?

5. What information do you need to analyse prior to drafting a budget?

6. What is the most reliable way to estimate income and expenditure?

9. What should you do before finalising the draft budget?

11. How should a budget be completed?

13. What types of financial commitments are included in budgets?

Check for Copying/Collusion Yes No

Signature: ........................................................ Date: ..............................................................

Planning the assessment

1. Read the scenario information provided.

Depending on these estimates, budgets are classified into three

b. What budgets do you need

4. political and legal environments.

Information/data required Sources

1. Read the scenario and information provided.

Expense item Quote ($) Comments

Task 2.1: Calculate linen expenses

Template A - Task 2.1: Calculate linen expenses

Task 2.2: Prepare an expense budget

Template A - Task 2.2: Prepare an expense budget