Assessment Manage Finance

Canterbury Business College
CRICOS Code – 01899K RTO Code - 6554

W3w
Unit description:
ASSESSMENT
Cluster Hospitality(This is for Term 4 Nov 2020)
Unit Code SITXFIN003
Unit Name Manage Finances with in a budget
Qualification Name SIT40516-Certificate IV In Commercial Cookery
Training Package SITX
Assessment Tool Knowledge, Skills and Performance Test
Student must fill this section:

Candidate Name: Sukhdeep Kour
Candidate ID: 6610
“I give my permission for my assessment material to be used in the auditing,
Privacy Release Clause: assessment validation & moderation Process”
Plagiarism and
“I acknowledge that entire assessment work is done by me”
Collusion:
Student signature:
_________________ Date: _22-11-2020
Feedback to student:
Assessment Completion Status

Attempt Satisfactory Non-Satisfactory Date Assessor’s Signature
Initial attempt  
2nd attempt/Re-assessment
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CBC-SITXFIN003-A-V2020.1Page 1 of 34
Information for Candidate:

 All work is to be entirely of the candidate.
General Information for this assessment:
 Read the instructions for each question very carefully.

 Be sure to PRINT your FULL name & LAST name in every place that is provided.
 Short questions must be answered in the spaces provided.
 For those activities requesting extra evidence such as: research reports, ESSAY reports, etc. The student must attach its own work formatted
in double space, Arial 12 pts.
 All activities must be addressed correctly in order to obtain a competence for the unit of competency.
 If the candidate doesn’t understand the assessment, they can request help from the assessor to interpret the assessment.
Re-assessment of Result& Academic Appeal procedures:
If a student at Canterbury Business College is not happy with his/ her results, the student may appeal against their result via a written letter, clearly
stating the grounds of appeal to the MSS / DSS. This should be submitted after completion of the subject and within 14 days of commencement of the
new term.
Re-assessment Process:
 An appeal in writing is made to the ACC / MSS providing reasons for re-assessment /appeal.
 ACC / MSS will delegate another faculty member of CBC to review the assessment.
 The student will be advised of the review result done by another assessor.
 If the student is still not satisfied and further challenges the decision, then a review panel is formed comprising the lecturer/trainer in charge,
the ACC, the MSS and the DSS OR if need be an external assessor.
 The Institute will advise the student of the appeal decision within 14 days from the submission date of the appeal. The decision of the panel will
be deemed to be final.
 If the student is still not satisfied with the result, the he / she has the right to seek independent advice or follow external mediation option with
CBC’s nominated mediation agency.
 Any student who fails a compulsory subject or appeals unsuccessfully will be required to re-enrol in that subject.
The cost of reassessment will be borne by the Institute. The external assessor will base his/her judgement based on principles of assessment. These
principles require assessment to be reliable, fair, practical and valid.
Academic Appeals:
 If the student is dissatisfied with the outcome of the assessment marking process, he/she has a right to appeal the assessment results.
 The notice of appeal should be in writing addressed to the MSS / ACC and submitted within seven days of notification of the assessment results.
 If the appeal is not lodged in the specified time, the result will stand as marked.
 In emergency circumstances, such as in cases of serious illness or injury, the student must forward a medical certificate in support of a deferred
appeal. The notice of appeal must be made within three working days of the concluding date shown on the medical certificate.
 The decision of MSS / ACC will be discussed with the DSS and will be final.
For further information please refer to Student Handbook.
“I acknowledge that I have understood all the above rules and guidelines for the assessment
Sukhdeep Kour 22/11/2020
Full Name Signature Date (dd/mm/yyyy)
Submission Details
The Assessment Task is due on the 22 November 2020. Any variations to this
arrangement must be approved in writing by your assessor.
Submit this document with any required evidence attached. See specifications below
for details.
Performance objective
To provide you with an opportunity to allocate funds according to budget and agreed priorities.
To provide you with an opportunity to discuss changes to income and expenditure priorities with appropriate
colleagues prior to implementation.
To provide you with an opportunity to consult with and inform relevant personnel about resource decisions.
To provide you with an opportunity to promote awareness of the importance of budget control.
To provide you with an opportunity to maintain detailed records of resource allocation according to
organisational control systems.
To provide you with an opportunity to use financial records to regularly check actual income and expenditure
against budgets.
To provide you with an opportunity to include financial commitments in all documentation to ensure
accurate monitoring.
To provide you with an opportunity to identify and report deviations according to significance of deviation.
To provide you with an opportunity to investigate appropriate options for more effective management of
deviations.
To provide you with an opportunity to advise appropriate colleagues of budget status in relation to targets.
To provide you with an opportunity to assess existing costs and resources and proactively identify areas for
improvement.
To provide you with an opportunity to discuss desired budget outcomes with relevant colleagues.
To provide you with an opportunity to undertake appropriate research to investigate new approaches to
budget management.
To provide you with an opportunity to define and communicate the benefits and disadvantages of new
approaches.
To provide you with an opportunity to take account of impacts on customer service levels and colleagues in
developing new approaches.
To provide you with an opportunity to present clear and logical recommendations for budget management.
To provide you with an opportunity to complete financial and statistical reports within designated timelines.
ELEMENT PERFORMANCE CRITERIA
1. Allocate budget resources 1.1, 1.2, 1.3,1.4, 1.5

2. Monitor financial activities against budget. 2.1,2.2,2.3,2.4,2.5
3. Identify and evaluate options for improved 3.1,3.2,3.3,3.4,.3.5,3.6
budget performance.
4. Complete financial and statistical report. 4.1,4.2

Assessment description
This assessment activity is designed to assess your skills and knowledge in creating
financial documents and analyse financial data.
Procedure
To complete this assessment activity, you need:

 access to a workplace or simulated environment
 accessto workplace financial documents and interpret them meaningfully.
Assessment task 1- Knowledge Assessment
Activity 1A:
Explain why it is important to agree on organisational priorities before allocating
funds. Give three examples of agreed priorities in budgets that you have been
involved with.
Answer- The purpose and benefits of identifying priorities when preparing a budget are:
 A budget helps you to manage the available money in a very effective manner.
 Identifying the priorities and the resources available will help one to allocate
appropriate resources to relevant or prioritized projects.
 Once you have a well-planned budget in place, you can effectively monitor the
performance of the organization to see if the goals and objectives have been met. Any
error that has occurred in the budget decisions or any weak/low performance in business
due to ineffective budgeting can be used to improve the decision making process in the
future.
 You are able to plan the future goals, objectives and performance of the
organization.
 Effective identification of priorities will help you to set up future budgets more
accurately.
 You will have a clear idea of when to take necessary actions if anything goes out of
plan.
 You will be able to identify problems even before they occur as you will be
monitoring the budget: for example, emergency financial needs or issues with cash flow.
 Proper budgeting according to priorities will aid smooth functioning of the
organization and will increase staff motivation.
Examples of agreed priorities in budget-
 Promoting a new product or service (marketing)
 Expanding your department through increasing staff numbers (human resources)
 Developing a new product (development)
Activity 1B:
Why is it important to discuss any expenditure changes with colleagues before
implementing them? List the personnel that you would involve in such discussions
in your organisation.
Answer- In most organisations, you will not be responsible for setting priorities and
allocating funding alone; usually, you will be part of a team which discusses and negotiates
a range of options, in order to establish the best route forward for the organization.
Normally, you will need to discuss priorities with:
 Managers from relevant departments
 Accounting professionals (internal and external)
 Supervisors from relevant departments
 Owners and directors
 Stakeholders
 Purchasing staff
 Marketing staff
 Specialists (internal and external)
 A spokesperson for employees.
All personnel will need to know:

 How to make expenditure choices that contribute to the organization’s overall goals
 Which areas of the organization require reduced spending and cutbacks
 Which priorities will require extra funding and why
 Time periods for priority funding and expenditure
 Any budgetary changes made to support priorities
 Exact monitoring methods to finances are controlled
 How financial records need to be kept
 How financial information needs to be reported.
Activity 1C:
Why is it often beneficial to consult other personnel about resource decisions?
How do you consult with others in your organisation?
Answer- You must consult about the exact uses of your organisation’s financial resources
– Including departmental managers, supervisors, owners, accountants and other key
stakeholders.
You will need to discuss how finances are currently allocated and how they need to be
allocated in the future, in order to meet organisational goals without running over budget.
Consulting with other financial decision-making personnel will allow you to increase your
knowledge of your organisation, including how money is currently spent and what extra
needs and requirements there are. For example, a manager from a different department
may identify that more staff are needed in a certain operational area, and may be able to
provide details about the funding needed to achieve this. Another manager may be able to
identify ways of reducing overheads, which in turn will free up funding to be used
elsewhere.
You will only be able to find out about requirements in different areas of your organisation
by consulting with a range of personnel.
Resource decisions may involve:

 Human resources expenditure includes:
 Wages
 number of personnel at each level of the hierarchy
 Recruitment
 Physical resources expenditure includes:
 The buying of products
 the building and maintenance of infrastructure
 the buying and maintenance of equipment and technology
 Non-physical assets
 intellectual property
 Marketing and advertising expenditure may include:
 TV advertising
 magazine and newspaper space
 Billboards
Informing personnel about resource decisions- You will need to inform all personnel
about resource decisions, so that they can make appropriate financial decisions in their
own departments, and so that all parties can work toward the same organisational goals.
You may communicate resource decisions to employees in a number of different ways. If
decisions affect personnel company-wide, then it is best to call a group meeting to
announce decisions. If, however, information concerns specific personnel, then you may
choose to arrange smaller meetings, send emails, make telephone calls, or send memos.
Activity 1D:
Give four examples of different records of resource allocation that you use within
your organisation. For one of these, explain what information you need to fill out
and give details about why it is important to your company.
Answer- The expenses records that need to be kept include:
 Purchase orders
 proof that a valid purchase was authorised and as an initial indication as to
which department and perhaps budget line/code the purchase was intended
for
 Delivery docket/invoice/statement
 these documents demonstrate that the goods which were ordered were in
fact received and provide the evidence about how much was spent.
 Internal requisitions
 these will prove that stock was issued from a central store to a specified
department; the quantity and quality of each item will be listed on the
requisition, thereby enabling the appropriate amounts to be charged against
relevant departments
 Interdepartmental transfers
 similar to internal requisitions, these documents prove that stock that has
been issued to a certain department has been ‘on–sold’ to another
department and must now be charged against them
 Creditors ledger
 a detailed explanation of who your organisation owe money to, and how
much.
Tracking physical resources-

Use of assets register-
Every item of equipment bought should be given an identifying number or code. When the
item is issued to a department, its whereabouts should be recorded in a dedicated assets
register. The assets register may also record the date of purchase, the supplier, when
warranties run out, the price paid, date issued to the department, as well as details about
when the item requires maintenance/service and/or replacement. Items covered by this
register may include cars, in–room facilities (such as beds, televisions and fridges),
technology, and office equipment. Some registers record all items of equipment, including
what may be regarded as ‘small equipment’; some registers record only ‘large equipment’
or items over a certain cost price. Asset registers can also be used to allocate expenses
against departments when a purchase has been made and for purposes of calculating
depreciation.
Activity 2A:
Give five examples of financial records that you can check/monitor to track actual
income and expenditure against budgets. For one of these examples, explain what
the record shows and why it is used.
Answer- Types of financial records you may have to check include:
 Trial balances
 a list of closing balances in ledger accounts
 Receivable reports
 these reports show how much is owed to your organisation
 this should not be ignored, as it can represent a large proportion of
incoming cash flow
 Purchase summary reports
 includes all orders you have placed with suppliers
 this can represent a large proportion of expenses
 Stock reports
 signifies the overall health of the company
 provides investment information
 Variance reports
 shows differences between planned financial outcomes and actual outcomes
 this can be a vital tool when comparing income and expenditure
against budgets
importance of stock records-

Stock records provide a very useful way of monitoring stock in your store. Like
other inventory management tools there are many systems being used. The aim is to
provide up to date information about each product within the store.
A typical stock record system includes the product:

 Name.
 Number.
 Size.
2. Describe three techniques commonly used for making estimates of expense

budgets.
Answer-
 Factor estimating.- Right after idea generation, so as soon as you would like to
know more about the feasibility of a plan, you will need an estimate to determine whether it
won’t be a waste of time to continue to develop that idea. There are several methods of
factor estimating with increasing accuracy, all used in situations where the scope of a
project is not yet complete and the preparation of a detailed estimate would be too time-
consuming (and of course too expensive).
 Parametric estimating. – Parametric estimating entails the analysis of cost,

programmatic and technical data to identify cost drivers and develop cost models. The
approach essentially correlates cost and manpower information with parameters
describing the item to be costed. This process results in sets of formulae known as “Cost
Estimation Relationships” (CERS), which are applied to produce cost outputs for different
elements of an estimate. Parametric Method generally involves the use of a regression
analysis (linear and nonlinear) to determine the best algorithms for a model.
 Equipment factored estimating. – An equipment factored estimate is produced by

taking the cost of individual types of process equipment, and multiplying it by an
"installation factor" to arrive at the total costs. In practice, this has proven to be quite a
useful method since a substantial part of total project costs are made up of equipment. As
a result, it’s the basis for many factor estimating methods.
The installation factor, or total installed cost (TIC) factor, includes subcontracted costs,
associated direct labor costs and materials needed for installation of equipment.
 Lang method. – A method that is slightly more detailed and therefore needs some
more project information, is the so-called Lang method. Its basis is the equipment prices
free at site, of which it’s best to have quotations. The method differentiates for solids,
liquids and mixed solids/liquids.
 Hand method. – This method, developed by W.E. Hand, is an extension of the
Lang method and proposes to use different factors for each type of equipment (columns,
vessels, heat exchangers and other units) rather than per process type. Hand’s factors
exclude indirect field costs (IFC), home office costs (HOC), and the costs for OSBL
facilities, all of which must be estimated separately.
 Detailed estimating.- Sometimes called bottom-up estimating. With this method,

detailed estimates are made at relatively low levels in the work breakdown structure
(WBS), typically at work-package or task level. This approach is closely related to
scheduling, planning and resource allocation and is both time-consuming and costly. It
requires a good knowledge of the activity and there also needs to be a reasonable level of
definition for the exercise to be meaningful.
Often the material take-off or MTO of a project is used as a basis for a detailed estimate.
Establishing such an estimate from an MTO can also be done automatically using cost
estimating software and cost database.
3. Discuss the role of a budget and financial reports for a business.
Answer- Role of budget
Budgeting identifies current available capital, provides an estimate of expenditure and

anticipates incoming revenue. By referring to the budget businesses can measure
performance against expenditure and ensure that resources are available for initiatives
that support business growth and development. It enables the business owner to
concentrate on cash flow, reducing costs, improving profits and increasing returns on
investment.
Budgeting is the basis for all business success. It helps with both planning and control of
the finances of the business. If there is no control over spending, planning is futile and if
there is no planning there are no business objectives to achieve.
A budget is a plan to:
 control the finances of the business

 ensure that the business can fund its current commitments
 enable the business to meet it objectives and make confident financial decisions;
and
 make sure that the business has money for future projects.
The benefits of budgeting should never be underestimated when running a business:
 budgeting estimates revenue, plans expenditure and restricts any spending that is
not part of the plan
 budgeting ensures that money is allocated to those things that support the strategic
objectives of the business
 a well communicated budget helps everyone understand the priorities of the
business
 the process of creating a budget provides opportunities to involve staff, resulting in
them sharing the organisation’s vision; and
 engaging the team in reviewing and comparing the budget with actuals can provide
information that highlights the strengths and weaknesses of the business.
If you’re running your business without a proper budget you may find you’re actually just
running around in circles and not meeting your long-term goals. By taking the time now to
set a budget, you will free up time in the future and give yourself the best chance of
achieving the rewards you want for your hard wor
Role of financial reports
Financial statements provide various important financial information that helps investors,
creditors and analysts evaluate a company's financial performance.Financial
reporting helps management communicate the past successes and future expectations of
the business
Here are a few reasons why financial reporting is important to your business:
TAX PURPOSES
The most important reason to use financial reports is that you have to and required by law
to do so. The Internal Revenue Agency uses these reports to make sure you’re paying
your fair share of taxes.
Businesses that make a lot of profit have to pay quite a lot of taxes. Accurate financial
reporting helps reduce their tax burden and helps them ensure that all their resources are
not depleted in a short amount of time.
SHOWING FINANCIAL CONDITION
Potential investors want to know how well the company is doing before they invest.
Investors, creditors and other capital providers rely on a company’s financial reporting to
gauge the safety and profitability of their investments. Stakeholders want to know where
their money went and where it is now. Financial statements like the balance sheet address
provide detailed information about the company’s asset investments and outstanding debt
and equity components. Investors and creditors can use this information to better
understand the company’s position and capital mix.
EVALUATING OPERATIONS
The information on a balance sheet is a snapshot of a company’s assets, liabilities and

quite at the end of a financial period. However, a balance sheet doesn’t show what
operational changes might have occurred to cause changes in the financial condition of a
company. Operating results during the period is also something investors need to consider.
Financial reporting done on an income statement shares results about sales, expenses
and profit or losses.Using the income statement, investors can both evaluate a company’s
past income performance and assesses future cash flow.
EXAMINING CASH FLOW
A company’s profits are reported in the income statement but provide no direct information
on the company’s cash exchange. A company incurs cash inflows and outflows during a
period from non-operating activities, namely investing and financing. Cash from all
sources, not revenue from operations, is what pays investors back. That’s why a cash flow
statement is an important statement for an investor to review. The cash flow statement
shows the exchange of cash between the company and the outside work during a period
of time. By reviewing this statement, investors can know if a company has enough cash to
pay for expenses and purchases.
Activity 2B:
Explain what a financial commitment is and give three examples of regular
financial commitments you make in your organisation.
Answer-
Financial commitments-
A financial commitment is made when an order is placed or a contract is signed for
goods/services, with payment agreed to be paid at a later date. These payments may
cause a spike in cash flowing out of the organisation, and this can have implications for the
budget if it is not accounted for properly in documents as early as possible. You must
include all financial commitments into finance documents, so that spikes and troughs in
cash flow are foreseen and accounted for. A failure to include commitments into
documents can make it extremely difficult to control a budget, as you may well find
yourself overspending in months where large payments are due.
Examples of commitments include:
 Billed services from external professionals
 for example, you may hire an external electrician to fix technology on a one-
off basis
 Stock orders made
 you may order a large stock order, agreeing to make payments at a later
date
 Anything bought on credit
 Rental agreements
 rental payments for shop or office space may be due at different points in the
year
 Purchasing of intellectual property rights
 you may owe commission payments if you use other intellectual property.
Activity 2C:
Give three examples of variables that can cause you to deviate from the budget,
explaining why each one can affect the budget.
Answer- Identifying deviations-
Your organisation may choose, or be forced, to deviate from a budget for a wide range of
different reasons. Usually, these reasons are called variances, and refer to any number of
variables which can cause estimations for expenditure and income to be significantly
inaccurate.
Variances –
 Sales volume changes-
One of the main variances which can cause your organisation to deviate from an original
budget is sales volume figures. The sales of products and services will greatly influence
income statistics in any organisation, and if income falls or rises then you may need to
adapt the budget. Changes to sales volumes may be caused by changes in the economy,
with people having more or less spending power depending on economic fluctuations.
Advertising, competition, and changes to prices can also have a big impact on sales
figures.
 Materials and supply changes-
Materials and supplies can also trigger deviations from planned budgets. You may be
forced to deviate from a budget if market prices drop or rise and the price of materials
changes significantly. You may also be forced to deviate because of the quality of
materials purchased, which may affect the price you can charge due to the quality of
products and services.
 Labour –
Changes in market labour rates, wage rates, and staff sickness rates can also cause
expenditure and income variances, which may cause deviations from the budget. The
quality of the people you employ – their skill level, knowledge level, and experience – can
also affect income and expenditure statistics.
 Disaster/emergency-
Disasters and emergencies which result in the loss or damage of assets, or that require
spending to fix, can also hit budgets in a negative way. For example, if a flood damages
your organisation’s computer technology, you may have to use funds to buy new
technology in the short-term, while insurance claims are organised .
Activity 2D:
Describe what your options are for dealing with larger deviations in your
organisation’s budgets.
Answer-
Managing deviations-
The options you have for managing deviations will largely depend on whether variances
are favourable or unfavourable, and the significance of deviations. It is vital to take
appropriate action as soon as you notice the emergence of a significant deviation;
otherwise the deviation is likely to grow larger. The specific action you take will vary
according to the area of work concerned and the detail of the statistics themselves, but in
most cases you will have to adjust your budget for the next quarter immediately, usually by
altering the estimates for expenditure.
Large deviations-
Large deviations will generally leave you with fewer options, as budgets become more
difficult to adapt when estimations are significantly inaccurate.
You may need to:
 Make significant changes to the budget
 this may mean :
 reducing or increasing funding
 accepting overspending in a time period
 scrapping or rethinking priorities
 scrapping projects
 rethinking purchasing levels, wage increases, and new staff.
Activity 2E:
Which personnel do you need to update concerning budget statuses? Why is it
important for these parties to be updated?
Answer- we need to update following parties and reason also provide to be updated-
 Senior management
 it is likely that senior managers will have been involved in most budget
discussions, so it is vital that they are kept updated as much as possible
 Mid-level management
 e.g. heads of department
 these employees often have control over income and expenditure, so it is

important that they know the budget’s status
 The accounts department
 the accounts department may be involved in creating reports, but they should
also be kept up-to-date with organisational targets
 although accountants’ jobs are focussed on numbers, they must feel involved
in the wider context of the organisation, and this requires you to inform them
of progress towards goals
 A budget committee
 such committees are responsible for the ongoing monitoring of income and
overseeing revenue against projections
 Any other relevant staff members
 for instance, those who have worked on creating or monitoring the budget at
any stage.
Activity 3A:
Outline five main costs in your organisation and explain how one of these areas of
spending could be reduced without harming the customer experience.
Answer- following is the main costs in our organization-
 Wages and benefits.
 Rent (or mortgage).
 Equipment.
 Utilities and office supplies.
 Theft. ...
 Other losses.
 Professional fees.
 Marketing and advertising.
How to reduce costs without harm the customer experience-
Cut Office Rental Costs-

Office space can be expensive, especially if your business is located in a major urban area
like Delhi or Mumbai. If your rent is taking up a big part of your monthly budget, consider
an alternate arrangement. If you have a very small staff and computer-based operations,
you could save money by giving up your office and moving to a co-working space. Another
option is to allow your employees to work from home — when you need to be in the same
spot, meet at coffee shops or rent a conference room. If that’s not possible, consider
sharing office space with another small business to cut your rent in half.
 Identify five internal and external sources of information that may be used
as a basis for preparing a budget and forecasting income and expenditure.
Answer-
 Internal sources of information that may be used as a basis for preparing a
budget and forecasting income and expenditure.
 Size of Available Funds.

 Long-term Business Goals.
 National and International Events.
 Legislative Factors of Budget Preparation.
 Industry and Competitor Analysis.
 Project Return on Investment.
 External sources of information that may be used as a basis for preparing a

budget and forecasting income and expenditure.
 Competition,
 Scientific and technological progress,
 International relations,
 Macro- and microeconomics,
 A political situation and the social segment are among such factors.
Activity3B:
What steps can you take to make sure all relevant colleagues voices are heard
when discussing budget outcomes?
Answer- Holding useful discussions-
Holding focussed discussions can be extremely useful when making decisions about
budgetary improvements. To improve a budget’s performance, you should aim to discuss
the budget’s outcomes with the same personnel that you discussed budget priorities with.
Holding discussions with these personnel will help to inform all major financial decision
makers, reach decisions, make the most of people’s knowledge and experience, and
develop ideas.
Effective discussions require you to:
 Value everyone’s opinions
 you may not agree with your colleagues, but you should learn to encourage
and accept all views despite this
 Involve the correct people
 based on position within the organisation, knowledge, and experience
 Communicate clearly
 using both verbal and non-verbal communication
 Compromise when necessary
 Use active listening techniques
 listen, clarify, and confirm
 Be open-minded to new ideas and points of view
 Trust your colleagues
Activity 3C:
Describe two research methods you can use to investigate new approaches to
budget management.
Answer-
Researching new approaches-
Researching new approaches to budget management is an essential step when working to
improve budgets.
Research can take many forms, which may include some of the following.
1. What do competitors do?-Often, a useful research method is to look at how your
competitors approach budget management. If this is not possible, look at publically
available examples of how successful companies in your industry control their
finances. Pay close attention to how they prepare, discuss, monitor, and adapt their
budgets, according to what type of budget it is and what its purpose is (e.g. to
control finances while developing a new product).
2. Consulting experts and colleagues with more experience-Research can also be
carried out by consulting financial experts – such as accountants – or colleagues
that have more experience of managing finances and budgets. These parties may
be able to tell you where you are making mistakes, or offer useful insights about
how to control budgets.
Activity 3D:
How can you define new approaches for the benefit of your colleagues? What
information should you provide them with?
Answer- Defining and communicating the benefits of new approaches-
It is vital that you define the benefits of any new approaches to budgetary management
that you adopt, before communicating them to your team. Defining approaches will require
you to meet with other relevant personnel to discuss why it is worth adopting new
approaches, and why they will help the organisation to control finances more effectively. All
employees who deal with any aspect of organisational finances should be involved in this
meeting, as it is these staff that will ensure the new approaches are implemented correctly.
A lack of information may lead to a lack of financial control, potentially leading to the failure
of new strategies and approaches.
Defining the benefits of new approaches will require you to:
 Express why they are better than old approaches
 Point out why new approaches are more accurate in estimating income and
expenditure
 Communicate why new approaches will increase efficiency and decrease wastage
 Explain how new approaches will help to prioritize organizational goals and
objectives
 Determine how monitoring, reviewing, and reporting will improve with the adoption
of the new approach.
Activity 3E:
How can new approaches to managing finances affect the customer experience?
Give at least three examples.
Answer-
Be aware, new approaches can lead to:
 More/less funds for human resources
 this may lead to less customer service staff, or lower quality staff
 More/less funds for communications
 customer hotlines may be understaffed
 response times may rise
 More/less funds for purchasing materials
 products and services may suffer because of this, which will directly impact
the customer experience
 More/less funds on customer areas – such as shop floors, eating areas, and
payment areas
 negative experiences can lead customers to think twice before doing
business with you again
 More/less funds for technology.
Activity 3F:
Explain how you would present a recommendation for budget management in
your organisation. Describe what information you would use, and how you would
present it.
Answer- Presenting recommendations for budget management-
It is important that you can present clear and logical recommendations for budget
management, based on review and analysis of current financial controls, and on research
carried out. To persuasively make a case for a particular approach or strategy, you will
need to have clear evidence to suggest why it will work. Evidence can be broken down into
the two categories outlined below.
Evidence of clear failures or weaknesses- Firstly, you must make a case for why
change needs to happen, and this should focus on current strategies and approaches
which have proven to be inadequate.
Focus on any financial data (contained in financial documents) which shows:

 Poor estimations of costs and income
 Examples of overspending
 Examples of significant variances and deviations
 Examples of wastage
 Examples of poor funding allocation
 Examples of objectives and goals that have not been met because of poor
control of finances.
Evidence of the benefits associated with proposed changes After making a case for
change, you should look to supply evidence that certain strategies and approaches are fit
for adoption.
You should focus on backing up your recommendations by:
 Focusing on why proposed changes will work for your organisation
 Using examples of how approaches and strategies have worked in other
organisations
 Presenting experts’ views as to why your recommendations will work
 Showing how new approaches will benefit both customers and employees.
Presenting evidence-
The way you make recommendations and present evidence will depend on your
organisation’s policies and procedures, the company’s hierarchy, and who you have to
persuade to make changes a reality. You may need to present evidence to numerous
other managers and key stakeholders, in order to secure agreement for change; or you
may just need to make your recommendations to one person (usually a director or
owner) who has overall decision-making power over any financial changes that are
made. It is important that you know who you need to persuade, so that you can tailor
your evidence to appeal to those parties.
Activity 4A:
List all financial documents that you are responsible for creating, stating how often
each one is sent to other parties for monitoring and review.
Answer-
 Trial balance
 Receivable reports
 Purchase summary reports
 Stock reports
 Variance reports
 Wastage reports
 Sales reports
 Supporting reports, such as covers, occupancy rates, staff costs and units sold
 Business activity statements
 Labour and wages reports
 Cash flow statements.
Sent for monitoring and review-
The financial report- A financial report contains all the relevant account documentation
and reports that make up an organisation’s financial records. This usually contains
information from one financial year so the report can be submitted at the end of the
financial year for legal reporting requirements. An organisation also needs to keep financial
reports to evidence the organisation’s financial activities and for any obligations to report
financial activities to a board of directors or to shareholders. An organisation may also
choose to create a financial report more frequently, such as each quarter period, for
compiling financial information more frequently and for performing financial analysis, for
example, to track income and profit or losses.
Activity 4B:
Describe what formats you can use to present information, giving examples of
advantages and disadvantages for each.
Answer- Preparation and presentation-
You should always look to present information so that is clear as possible, and so that
conclusions can be drawn easily. You may choose from a number of different formats to
achieve this.
You may choose to present information and data in:

 Written summary reports
 Charts
 such as pie charts
 Graphs
 such as bar graphs
 Digital tables, where data is sortable
Assessment task 2 - Skills and Performance Activity
Skills and Knowledge activity (Q & A)

Objective: To provide you with an opportunity to show you have the required knowledge for this unit.
The answers to the following questions will enable you to demonstrate your knowledge of:
 Types of financial records:
o bank deposit documentation
o bank statements
o banking summaries
o business activity statements
o cheque books
o credit card transaction statements
o invoices
o journal entries
o labour and wages reports
o merchant statements
o merchant summaries
o transaction reports
 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
 Factors for consideration in the preparation of financial and statistical reports:
o cash flow
o commercial account activity
o commission earnings
o covers and financial return
o daily, weekly and monthly transactions
o expenditure
o income
o occupancy rates and financial return
o performance of department, project and/or products and services
o sales performance
o sales returns
o staff costs
o stock levels
o variance in income and/or expenditure
o wastage
o yield
 Use, contents of and formats for:
o budgets
o financial reports
o statistical reports
 Budget terminology
 Specific industry sector and organisation:
o use of budgets to control costs and enhance profitability
o importance of budget control
o techniques for maximising budget performance
o financial reporting procedures and cycles
o features and functions of accounting software programs used to manage budgets
Answer each question in as much detail as possible, considering your organisational requirements for
each one.
All answers will vary depending on the learner and the organisation they work for but the learner should be
able to answer each question competently.
1. In your own words, explain any 6 of the following financial records show:
 Invoices
 Labour/wage reports
 Credit card transaction statements
 bank deposit documentation
 bank statements
 banking summaries
 business activity statements
 cheque books
 journal entries
 merchant statements
 merchant summaries
 transaction reports
 Invoices- If goods or services were purchased on credit, the invoice usually

specifies the terms of the deal and provides information on the available methods of
payment. Types of invoices may include a paper receipt, a bill of sale, debit note,
sales invoice, or online electronic record.
An invoice, bill or tab is a commercial document issued by a seller to a buyer,

relating to a sale transaction and indicating the products, quantities, and agreed
prices for products or services the seller had provided the buyer.
 Labour/wage reports- Income and Wages Reports (IWRs) are economic

indicators which show the earnings of individuals or entities in each time period.
Most IWRs focus on the personal income from employment and examine its
relationship to the operating income of companies or the price stability in the
national economy.
 Credit card transaction statements- A billing statement is

a monthly report that credit card companies issue to credit
card holders showing their recent transactions, monthly minimum payment due, and
other vital information. Billing statements are issued monthly at the end of each
billing cycle.
 Bank statements- The top of a bank statement generally shows the name of
the account holder along with sensitive information such as bank account number
and branch number. It also contains a summary table that shows the time period,
opening balance, deposits, withdrawals, and closing balance
 Cheque books- For cheques which have been used, the list will show the date of
issue, the user who processed the disbursement, payee name, status and amount.
 Journal entries- A journal entry is a record of the business transactions in

the accounting books of a business. A properly documented journal entry consists
of the correct date, amounts to be debited and credited, description of the
transaction and a unique reference number.
2. In your own words, explain any 6 of the following types of budgets:

 cash budgets
 cash flow budgets
 departmental budgets
 event budgets
 project budgets
 purchasing budgets
 sales budgets
 wage budgets
 whole of organisation budgets
Answer-
 Cash budget- A cash budget is an estimation of the cash flows for a business over
a specific period of time. This budget is used to assess whether the entity has
sufficient cash to operate.
 Cash flow budgets- A cash flow budget is an estimate of all cash receipts and
all cash expenditures that are expected to occur during a certain time period.
Estimates can be made monthly, bimonthly, or quarterly, and can include nonfarm
income and expenditures as well as farm items.
 Departmental budget- A departmental budget is a department-level financial plan

that lays out spending for the upcoming quarter or fiscal year. Managing
a budget for your department is similar to managing a household budget—well, a
household budget with a few more stakeholders and moving parts thrown in the
mix.
 Event budget- The event budget is a projection (forecast) of the income and
expenditure that the event will incur based on plans made and information
gathered. The preparation of a budget is an essential part of event management.
 Project budget- A project budget is the total projected costs needed to complete
a project over a defined period of time. It's used to estimate what the costs of
the project will be for every phase of the project. The project budget will include
such things as labor costs, material procurement costs and operating costs.
 Sales budget- Sales budget is a financial plan, which shows how the resources
should be allocated to achieve forecasted sales. The main purpose of sales
budget is to plan for maximum utilization of resources and forecast sales. The
information required to prepare a sales budget comes from many sources.
3. Why is it important to consider the following factors for preparation of financial

and statistical reports (describe any five):
 cash flow
 commercial account activity
 commission earnings
 covers and financial return
 daily, weekly and monthly transactions
 expenditure
 income
 occupancy rates and financial return
 performance of department, project and/or products and services
 sales performance
 sales returns
 staff costs
 stock levels
 variance in income
 wastage
Answer- The five factors to consider in the preparation of the financial and statistical
reports are:
 Cash flow
 Commercial account activity
 Commission earnings
 Expenditure
 Income
Explanation:
-Cash flow is important to be considered in the preparation of the financial and statistical
reports because it helps to determine the amount of cash which the company receives or
gives out by the way of payments to creditors. It gives a snapshot of the amount
of cash coming into the business, from where, and amount flowing out.
-Commercial account activity is another important factor to consider in the preparation of

the financial and statistical reports as it helps understand the services offered to the
customers such as the credit products, investments and cash managements.
-Commission earnings is another important factor as it makes it easy to understand the

salary an employee receives, along with other types of payment that accrue during the
course of their work, which paid to an employee after completing a task, which is, often,
selling a certain number of products or services.
-Expenditure is also an important factor in preparation of the financial and statistical

reports as it helps the organization to understand the the type of payments made either
cash or credit to purchase the various products and services.
-income is one factor of great value while preparing the financial and statistical reports
since it helps the company accountants to determine the amount of money the
organization receives in exchange for its provision of goods or services or through
investing capital
4. Explain what yield management is in relation to a hotel. Why is yield

management important?
Answer- Yield management is a variable pricing strategy, based on understanding,

anticipating and influencing consumer behaviour in order to maximize revenue or profits
from a fixed, time-limited resource (such as airline seats or hotel room reservations or
advertising inventory).
Why yield management is important-
Increased revenue-Yield management in the hospitality industry helps you to make the
most of your occupancy. It ensures higher revenue, even if your occupancy is not 100%.
(Regardless of the peak or weak season).A solid yield management strategy can increase
your revenue significantly.
Decreased error-With hotel yield management strategies, there’s no chance of making

mistakes while setting the price of the rooms. The accurate demand forecasting eliminates
any miscalculated risks.
5. Explain why having dedicated budgets for specific departments and projects
can be useful (as opposed to only relying on a budget for the whole
organisation).
Answer- Departmental budgeting offers more control over spending at the department
level, allowing teams to analyze performance in a granular way.
Benefits include risk management and the ability to see which areas are profitable and
which are not. It can also help teams spot bottlenecks much faster than they would
working under one budget for the entire organization.
The importance of budgeting in project management lies in the ability to prevent
unnecessary costs and to allocate the correct amount of the budget to each corresponding
need. As the mantra goes, “Time is Money”, and nothing is more harmful to the successful
development of a project than a badly configured budget.
Budgeting is essential in the development of any major business project. Without a well-
planned budget, projects can fall apart and be left incomplete. Once a budget is in place,
the project manager and cost estimator can then determine how much money can be
spent on each component of the project.
6. Why is it important to consider sales performance when monitoring budgets
and preparing financial reports?
Answer- Advantages of measuring sales performance-
Measuring sales traceability allows marketing and sales teams to optimally coordinate their
efforts in order to accomplish the goals of both departments. In addition to providing
information on marketing campaigns and sales force activities, inaCátalog allows for the
evaluation of the entire customer service traceability. This includes:
 Knowing which marketing advertisements are more attractive to
consumers. We can know what marketing material salespersons show on each
visit to learn which are working better per segment and revise them.
 Drawing conclusions based on user behavior. Thanks to data obtained
from tracing sales visits we can analyze customers based on characteristics (such
as age, gender…), their tastes and their behavior.
 Knowing the state of KPIs or conversions. Knowing whether goals are being
accomplished and which actions are working toward them. Measuring the
traceability is useful when monitoring KPIs and conversions, to redefine the strategy
when necessary.
 Time optimization. Given that sales and marketing departments work in a
coordinated but independent manner, a duplication of administrative tasks is
prevented and efforts are focused on accomplishing common goals. In addition, the
digitalization of marketing material allows for a greater margin to adapt, employing
less time and money.
 Improved decision making. As we have already discussed, data is the key of
business intelligence and of a strategic decision-making that is based on analysis
and experience.
 Error prevention and a greater room to act. Knowing all the information makes it
easier to detect errors in time to correct them faster, in addition to knowing where
the problem lies exactly.
 Design of future strategies. Information and data analysis will be useful when
designing future strategies targeted at consumers, implementing well-defined goals
and actions.
7. What information is contained in the following document types:
 Budgets- Also known as budget statement, this document contains details of

estimated receipts and expenditure in the financial year ending in the coming March
(this is known as revised estimates or RE). Similarly, the forward looking estimates
for the financial year starting in April (budget estimates) are included. The final
figures - known as "actuals" - for the year before the current financial year numbers
are also mentioned
 Financial reports- The process of producing statements that disclose a

business’s financial status to management, investor and the government is known
as Financial Reporting.
Financial reporting includes:
 external financial statements (income statement, statement of comprehensive

income, balance sheet, statement of cash flows, and statement of stockholders’ equity)
 notes to the financial statements
 communication regarding quarterly earnings and related information through press
releases and conference calls
 quarterly and annual reports to stockholders
 financial information posted on a business’s website
 financial reports to governmental agencies including quarterly and annual reports to
the Securities and Exchange Commission (SEC)
 documentation pertaining to the issuance of common stock and other securities
 Statistical reports-The statistical report provides basic information about the table
that is processed in each step. The statistical report also indicates the number of
key values used to retrieve rows in the table.
A statistical report provides detailed performance information about an archive,

extract, or delete process. Use the information in statistical reports to find the best
methods to improve performance. For example, you might change the method of
access to a database table, increase the number of keys, or create an index for a
key column.
8. Explain what the following budgetary terminology means:
 Revenue- Revenue is the income generated from normal business operations and
includes discounts and deductions for returned merchandise. It is the top line or
gross income figure from which costs are subtracted to determine net income.
Revenue is also known as sales on the income statement. It is vital for a startup to
get positive revenue early.
 Financial commitment- A financial commitment is a commitment to an expense at

a future date. We may use the term for either a major expense or an ordinary one. It
is a snapshot of a business' finances on a given date. Put simply; a financial
commitment is a pledge to pay something on a future date or over a specific period.
 Debt- Debt is an amount of money borrowed by one party from another. Debt is
used by many corporations and individuals as a method of making large purchases
that they could not afford under normal circumstances. A debt arrangement gives
the borrowing party permission to borrow money under the condition that it is to be
paid back at a later date, usually with interest.
9. Why is it important to promote budget control, and how can this enhance the
overall profitability of your organisation?
Answer- A budgetary control is a mechanism that helps senior managers to ensure that
spending limits are adequate. This control is important because spending excesses have
an unfavorable impact on corporate profits .
By referring to the budget businesses can measure performance against expenditure and
ensure that resources are available for initiatives that support business growth and
development. It enables the business owner to concentrate on cash flow, reducing costs,
improving profits and increasing returns on investment.
Enhance the profitability of organization-
A budget:
 control the finances of the business
 ensure that the business can fund its current commitments

 enable the business to meet it objectives and make confident financial decisions;
and
 make sure that the business has money for future projects.
10.Identify and outline the steps in the accounting cycle.

Answer- The eight steps to the accounting cycle include the following:
Step 1: Identify Transactions. - The first step in the accounting cycle is identifying
transactions. Companies will have many transactions throughout the accounting cycle.
Each one needs to be properly recorded on the company’s books.
Recordkeeping is essential for recording all types of transactions. Many companies will
use point of sale technology linked with their books to record sales transactions. Beyond
sales, there are also expenses that can come in many varieties.
Step 2: Record Transactions in a Journal. - The second step in the cycle is the creation
of journal entries for each transaction. Point of sale technology can help to combine Steps
1 and 2, but companies must also track their expenses. The choice between accrual and
cash accounting will dictate when transactions are officially recorded. Keep in mind,
accrual accounting requires the matching of revenues with expenses so both must be
booked at the time of sale.
Cash accounting requires transactions to be recorded when cash is either received or

paid. Double entry bookkeeping calls for recording two entries with each transaction in
order to manage a thoroughly developed balance sheet along with an income statement
and cash flow statement.
With double-entry accounting, each transaction has a debit and a credit equal to each
other. Single-entry accounting is comparable to managing a checkbook. It gives a report of
balances but does not require multiple entries.
Step 3: Posting. - Once a transaction is recorded as a journal entry, it should post to an

account in the general ledger. The general ledger provides a breakdown of all accounting
activities by account. This allows a bookkeeper to monitor financial positions and statuses
by account. One of the most commonly referenced accounts in the general ledger is the
cash account which details how much cash is available.
Step 4: Unadjusted Trial Balance.- At the end of the accounting period, a trial balance is
calculated as the fourth step in the accounting cycle. A trial balance tells the company its
unadjusted balances in each account. The unadjusted trial balance is then carried forward
to the fifth step for testing and analysis.
Step 5: Worksheet. - Analyzing a worksheet and identifying adjusting entries make up the
fifth step in the cycle. A worksheet is created and used to ensure that debits and credits
are equal. If there are discrepancies then adjustments will need to be made.
In addition to identifying any errors, adjusting entries may be needed for revenue and
expense matching when using accrual accounting.
Step 6: Adjusting Journal Entries. - In the sixth step, a bookkeeper makes adjustments.
Adjustments are recorded as journal entries where necessary.
Step 7: Financial Statements. - After the company makes all adjusting entries, it then
generates its financial statements in the seventh step. For most companies, these
statements will include an income statement, balance sheet, and cash flow statement.
Step 8: Closing the Books. - Finally, a company ends the accounting cycle in the eighth
step by closing its books at the end of the day on the specified closing date. The closing
statements provide a report for analysis of performance over the period.
After closing, the accounting cycle starts over again from the beginning with a new
reporting period. At closing is usually a good time to file paperwork, plan for the next
reporting period, and review a calendar of future events and tasks.
11.Explain the requirements for financial reporting procedures and cycles for an
organization?
Answer- The requirements for financial reporting of an organization are:
 The financial statements

 The notes to financial statements
 Quarterly and annual reports
 Prospectus
 Management discussion and analysis
Explanation:
-The financial statements are an important requirement for financial reporting of an
organization. These are the balance sheets, profit and loss account, cash flow statements
and statement of change in stock holders equity.
-The notes to financial statements is another requirement of the financial reporting
procedure of an organization that discloses the detailed assumptions made by
accountants when preparing a company's income statements for essential full
understanding of those documents.
-Quarterly and annual reports are also necessary as they provide the summary or
collection of unaudited financial statements such as income statements and balance
sheets.
-Prospectus is also important as it provide information and full details about an investment
offering for sale to the public.
-Management discussion and analysis is another important requirement of the financial
reporting procedure for an organization as it discusses the compliance, risk, and future
plans, such as goals and new projects.
12.There are many software available in the market for preparing the budget for a
company. Explain the reasons for which you recommend the most preferred
one to your judgement. Please carry out your research and provide references.
Answer-
The best software to use for budgeting will be Netsuite ERP.
 One of the reasons why the software is the best for budgeting purposes is its
flexibility in application.
 The software is also preferred because it makes the budgeting activities in the front
office to be automatic.
 The software also makes the order-to-cash processes within a company to be well
connected and powerful to effectively manage the budgeting process.
 The software also plays an important role in financial planning to achieve the
expected goals in budgeting.
Explanation:
One of the reasons why the software is the best for budgeting purposes is its
flexibility in application. It can be used in midsized businesses, large companies, and
high growth firms.
The software is also preferred because it makes the budgeting activities in the front
office to be automatic. For instance, it makes revenue management, fixed assets,
financial management, inventory management, order management, and billing to be
automatic. That helps in providing managers with a customized view of the performance
indicators and reports.
The software also makes the order-to-cash processes within a company to be well
connected and powerful to effectively manage the budgeting process. It also
increases the visibility of the production workflows to make the company offer its products
to the market on time. NetSuite ERP will also be effective for budgeting purposes because
it meets the accounting needs within an organization such as closing finances, creating
strong expense management, and revenue management. The financial information is
offered in real-time to assist in budgeting. The revenue recognition management in the
software allows individuals to create appropriate financial statements for all the sales
transactions taking place within a business.
The software also plays an important role in financial planning to achieve the
expected goals in budgeting. It includes the "what-if" financial modeling to assist in
forecasting and budgeting. It also evaluates the various financial issues to make it easy to
set annual targets easily. Also, it helps in analyzing the gaps existing between the
projected and the actual results to make it easy for managers to manage their
expectations while budgeting.
References
https://reviews.financesonline.com/p/netsuite-erp-software/#category=budgeting-software
https://accounting-software.financesonline.com/c/budgeting-sofware
Performance activity
Objective: To provide you with an opportunity to demonstrate the required performance elements for
this unit.
A signed observation by either an approved third party or the assessor will need to be included in this
activity as proof of completion.
This activity will enable you to demonstrate the following performance evidence:
 Manage a budget for a business over a three-month period that meets the specific business’ needs
 Undertake at least two of the following to inform management of the above budget:
o discussions with existing suppliers
o evaluation of staffing and rostering requirements
o evaluation of impact of potential roster changes
o review of operating procedures
o sourcing new suppliers
 Monitor income and expenditure and evaluate budgetary performance over the above budgetary
life cycle
 Complete financial reports related to the above budget within designated timelines and using
correct budget terminology
Answer the activity in as much detail as possible, considering your organisational requirements.
All activity answers will vary depending on the learner and the organisation they work for but the learner
should be able to demonstrate their competency in the unit requirements.
As a workplace activity or simulated workplace activity (as directed by the assessor):
1. Create a budget for an event or project that will last for three weeks or more. Throughout this period,
you must show that you can create, monitor, and control the budget by doing the following:
 Show that you can work with colleagues to establish requirements and priorities (including
staffing requirements and stock requirements)
 Use financial records to monitor expenditure and income on a regular basis
 Identify any variances and deviations, and react to them – you may need to adapt the budget
 Complete financial reports to ensure control of finances, and to update others on the budget’s
status.
 Case Study Scenario:
 Assuming that you are the manager of ABC Restaurant (Trading as ABC Food). As manager of this
company, it’s also your responsibility to suggest a monthly budget for this restaurant. This
restaurant has already got its annual budget but the Management wants you to propose a monthly
budget by you for the month of March and the budget of the previous two months are as follows:

January January February February March
Budget Actuals Budget Actuals Budget
INCOME
Home Delivery 4500 4689 4700 4821
Food in Dinning 5600 5753 5900 5879
Juiceand Beverages 2400 2359 3000 3253
TOTAL REVENUE 12500 12801 13600 13953
EXPENSES
Wages 3100 3200 3250 3300
Raw Material Purchase 3500 3600 3000 3200
Stock in hand 600 521 550 621
Building Rent 1,600 1,600 1,600 1,600
Maintenance including
200 175 200 186
Repair
Marketing 200 200 200 300
Bills (Internet, phone, POS
300 300 300 300
software subscription etc.)
TOTAL EXPEND. 9,500 9,596 9,100 9,507
Cash in Hand +/- 38 128 163 28

Cash on hand: Beginning 1,000 1,000 1,024 1,159
Cash on hand: Closing 1,038 1,128 1,187 1,187
 01. As Manager, prepare the proposed budget for the month of March in the above
blank column.
 You as the manager and the small order cook have agreed to speak to your fruit and
vegetable supplier to see if there are any possibilities of reducing the cost of your
purchases. You want to reduce your delivery from 4 days per week to twice a week and
rather than telling them what fruit and vegetables you want, you are requesting them to
select the best quality for the cheapest price, ie the cheapest on the day.
 02. If the supplier do not agree with your proposal and wants to remain strict to the present
system, what would be your course of actions to look for the new supplier for the same purpose?
 Please search for at least three new suppliers of supplying ABC Food that would meet the new
requirements and provide their detail contact information.
SL Supplier’s Name and Email address Contact ABN Number

address Number
1
2
3
 03. If you follow the budget mentioned above, you would find that your expenses on wages
were always above the budgeted amount. This was a great concern for the management that the
budgeted wages should not exceeded during the whole year. Moreover, during the annual
management meeting, the directors put up an observation that the rostering of the staff was not
judicial basing on the busy hour of the day and the busy days of the year.
 Basing on the above observation, make necessary amendment of the below mentioned roster and
propose and revised roster so that the above mentioned points are resolved and also
commensurate with the budget.
 Weekly Roster
 ABC Foods
 ABC Food: Roster sheet for week 43

Employee Tues Wed Thurs Fri Sat TOTAL
1200- 1200- 1200-
Rostere 1200-1600 1600 1600 1200-1600 1600
d hours 2000-2400 2000- 2000- 2000-2400 2000-
John
2400 2400 2400
Full-time No. of
8 8 8 8 8 40
hours
Rostere 1400- 1600-
1600-2000
George d hours 1900 2000
Part- No. of
4 5 4 13
hours
time
Rostere 1100-1500 1700-
Mickhae d hours 1600-2000 2200
l
No. of
8 5 13
hours
Casual
Rostere 1700- 1600-2100 1900-
1800-2200
d hours 2000 2130-2300 2300
Lily
No. of
Casual 4 3 6.5 4 17.5
hours
Rostere 1000-
1800-2000
d hours 1500
Bikel
No. of
Casual 2 5 7
hours
Rostere 1800- 1800- 1900-
1700-2000 1800-2200
d hours 2100 2100 2200
Donald
No. of
Casual 3 3 3 4 3 16
hours
Rostere 1000- 1700-
1800-2130
d hours 1500 2000
David
No. of
Casual 5 3 3.5 11.5
hours
Rostere 1000-1500 1600- 1000-
1700-2200
d hours 2000 1400
Nigel
No. of
Part-time 5 4 4 5 18
hours
Rostere 1800-
1700-2000 1000-1400
d hours 2000
Zina
No. of
Casual 3 4 2 9
hours
TOTAL Rostere
d hours
No. of
29 23 23 39 31 145
hours
 03. What would you recommend if you want to match the requirements of the roster
mentioned above for different seasons of the year (peak season and off peak season should be
considered during the whole year). Mention five major points those should be considered for
smooth operation of ABC Food.
 04. Prepare a financial report for ABC Food for 3 months basing on the Budget mentioned
below and draft and email to the CEO of ABC Food.
REVENUE BUDGET – ACTUAL for 2019–2020

ABC Foods
LAST YEAR
Home Delivery Food in Juice and
($) Dinning Beverages ($) TOTAL ($)
($)
July 4700 4950 1850 11500
August 4200 5100 2150 11450
September 4550 5500 1900 11950
October 4850 4725 1840 11415
November 4650 4900 1960 11510
December 4350 5500 2100 11950
January 4689 5753 2359 12801
February 4821 5879 3253 13953
March 4750 4640 1750 11140
April 4850 5250 1450 11550
May 4555 4000 1600 10155
June 4250 5500 1850 11600
TOTAL 55215 61697 24062 140974

Monthly Income and expenses Budget is as following:
July July August August September September
Budget Actuals Budget Actuals Budget Actuals
INCOME
Accommodation 3150 5020 2940 3670 2940 3670
Food 1680 1820 1890 2040 1890 2040
Beverages 1638 1680 1680 1896 1680 1896
TOTAL REVENUE 6468 8520 6510 7606 6510 7606
EXPENSES
Overhead
Wages 1,617 1,532 1,628 1,450 1,628 1,450
Stock 1,327 2,100 1,428 2,300 1,428 2,300
Advertising 200 200 200 200 200 200
Repairs/maintenance 400 600 400 300 400 300
Lease 1,500 1,500 1,500 1,500 1,500 1,500
Laundry 800 1,000 800 950 800 950
Miscellaneous 600 560 600 400 600 400
TOTAL EXPEND. 6,444 7,492 6,556 7,100 6,556 7,100
+/- 24 1,028 -46 506 -46 506

Cash on hand: start 10,000 10,000 10,024 11,028 10,024 11,028
Cash on hand: end 10,024 11,028 9,978 11,534 9,978 11,534
05. After completing the above mentioned tasks, you strongly feel that you could do it very
easily with any of the Accounting Software. What are the accounting software available in the
market and which one do you recommend to use for ABC Food? Please research at least three of
those three accounting software and provide three advantages and three disadvantages of each
Answer-
Budget Allocation and Monitoring

Good financial management systems and processes for tracking resource utilisation are essential
for a department to make effective use of its resources. Effective planning and financial control will
help departments to:
 ensure the efficient and effective use of resources

 make sound business decisions
 demonstrate accountability
 take remedial action where needed
Define a goal: To prepare an accurate budget it is deadly important to define a goal of the
event. It leads to plan event activities and prepares a budget according to them. Being an event
planner, it is needed to plan a budget as per the client’s requirements. Once the budget is final,
monitor it in the following ways.
 Share budget plan with your team.

 Revise and update it constantly so that every member of the team has a clear idea of the
money which is spent.
 If you require some changes in the budget, tell your team. They can suggest whether these
changes are necessary or not.
An event budget template is provided with

assessment.

Assessment Manage Finance

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Canterbury Business College

CRICOS Code – 01899K RTO Code - 6554

Student must fill this section:

Assessment Completion Status

Information for Candidate:

General Information for this assessment:

 Read the instructions for each question very carefully.

Re-assessment of Result& Academic Appeal procedures:

For further information please refer to Student Handbook.

Full Name Signature Date (dd/mm/yyyy)

ELEMENT PERFORMANCE CRITERIA

1. Allocate budget resources 1.1, 1.2, 1.3,1.4, 1.5

4. Complete financial and statistical report. 4.1,4.2

To complete this assessment activity, you need:

Assessment task 1- Knowledge Assessment

All personnel will need to know:

Resource decisions may involve:

Tracking physical resources-

importance of stock records-

A typical stock record system includes the product:

2. Describe three techniques commonly used for making estimates of expense

 Parametric estimating. – Parametric estimating entails the analysis of cost,

 Equipment factored estimating. – An equipment factored estimate is produced by

 Detailed estimating.- Sometimes called bottom-up estimating. With this method,

3. Discuss the role of a budget and financial reports for a business.

Answer- Role of budget

Budgeting identifies current available capital, provides an estimate of expenditure and

A budget is a plan to:

 control the finances of the business

The benefits of budgeting should never be underestimated when running a business:

Role of financial reports

SHOWING FINANCIAL CONDITION

The information on a balance sheet is a snapshot of a company’s assets, liabilities and

 e.g. heads of department

 these employees often have control over income and expenditure, so it is

 The accounts department

 Any other relevant staff members

How to reduce costs without harm the customer experience-

Cut Office Rental Costs-

 Size of Available Funds.

 External sources of information that may be used as a basis for preparing a

Focus on any financial data (contained in financial documents) which shows:

Sent for monitoring and review-

You may choose to present information and data in:

Assessment task 2 - Skills and Performance Activity

Skills and Knowledge activity (Q & A)

 Invoices- If goods or services were purchased on credit, the invoice usually

An invoice, bill or tab is a commercial document issued by a seller to a buyer,

 Labour/wage reports- Income and Wages Reports (IWRs) are economic

 Credit card transaction statements- A billing statement is

 Journal entries- A journal entry is a record of the business transactions in

2. In your own words, explain any 6 of the following types of budgets:

 Departmental budget- A departmental budget is a department-level financial plan

3. Why is it important to consider the following factors for preparation of financial

-Commercial account activity is another important factor to consider in the preparation of

-Commission earnings is another important factor as it makes it easy to understand the

-Expenditure is also an important factor in preparation of the financial and statistical

4. Explain what yield management is in relation to a hotel. Why is yield

Answer- Yield management is a variable pricing strategy, based on understanding,

Decreased error-With hotel yield management strategies, there’s no chance of making

7. What information is contained in the following document types:

 Budgets- Also known as budget statement, this document contains details of

 Financial reports- The process of producing statements that disclose a