SITXFIN009 Student Assessment Tasks.v1.0

SITXFIN009 Manage finances within a budget
SITXFIN009
manage finances within a

budget
Student Assessment Tasks – SITXFIN009 Manage finances within a

budget | Page 1 of 31
V1.0: April 2023, Approved: QAC
International College of Tasmania Pty Ltd trading as: TasCollege
RTO Code: 45352 | CRICOS Code: 03683K

ASSESSMENT COVERSHEET
This Assessment Coversheet MUST be filled up and submitted with each unit assessment task submission.
Student Name: Yuhua Zhang Student ID: 14075655

Course Certificate IV in Kitchen Management
Unit SITXFIN009_Knowledge questions and Project

Batch / Group Assessment Due Date: Due 18 Feb, 2024
1 Project Portfolio 4
2 Project 5
Assessment
Tasks
3 6
√ First Attempt  Second Attempt
Trainer Name Sujeet
Plagiarism and collusion: Plagiarism is an academic dishonesty denoting the use of someone else’s intellectual property
as the form of one’s own work. This includes copying other’s work in whole or part and/or citing information from
various sources without standard referencing.
Disciplinary actions: A student found to have plagiarized or cheated the work or colluded with any other student(s) will
be subject to attend the meeting with the Academic team for counselling, re-submission and /or undertaking
examination. If the student denies the Academic team’s decision, he/she will be referred to the TasCollege Disciplinary
Committee for further actions such as suspension from the course.
Student declaration
 I declare that all the assessment tasks’ answer(s) is my own work and is not plagiarised.
 I agree for providing the electronic copy of my assessment answers to be examined by using a relevant
plagiarism/collusion scan software.
 I have correctly referenced all in-texts and resources throughout the assessment tasks.
 I have made a copy of my assessment answers (print/electronic) that I can produce if the original is misplaced.
 I am aware of TasCollege policy on plagiarism as stated in the TasCollege Assessment Submission Guidelines
and other relevant policy and procedures.
 I also understand that a Late Submission/Re-Sit Fee will apply if I fail to maintain my course progress at the
required level.
Student Signature: Yuhua Zhang Date Submitted: Due 18 Feb, 2024
The Second Attempt will also be applied under compassionate and compelling circumstances.
Trainer’s name: Sujeet

Trainer Declaration: I declare that I have reviewed the submitted
Signature:
assessments properly and received them as a form of complete submission.
Date: Due 18 Feb, 2024

Contents
Introduction 6
Assessment for this unit 6
Assessment Task 1: Knowledge questions 7
Information for students 7
Questions 8
Assessment Task 2: Project 15
Information for students 15
Activities 16

Introduction
Welcome to the Student Assessment Tasks for SITXFIN009 Manage finances within a budget.
These tasks have been designed to help you demonstrate the skills and knowledge that you have
learnt during your course.
Please ensure that you read the instructions provided with these tasks carefully. You should also
follow the advice provided in the Hospitality Works Student User Guide. The Student User Guide
provides important information for you relating to completing assessment successfully.
Assessment for this unit

For you to be assessed as competent, you must successfully complete two assessment tasks:
 Assessment Task 1: Knowledge questions – You must answer all questions correctly.
 Assessment Task 2: Student Logbook – You must manage finances within a budget for a case
study organisation and then report on your findings.

Assessment Task 1: Knowledge questions

Information for students
Knowledge questions are designed to help you demonstrate the knowledge which you have
acquired during the learning phase of this unit. Ensure that you:
 review the advice to students regarding answering knowledge questions in the Hospitality
Works Student User Guide
 comply with the due date for assessment which your assessor will provide
 adhere with your RTO’s submission guidelines
 answer all questions completely and correctly
 submit work which is original and, where necessary, properly referenced
 submit a completed cover sheet with your work
 avoid sharing your answers with other students.
i Assessment information
Information about how you should complete this assessment can be found in Appendix A of the
Hospitality Works Student User Guide. Refer to the appendix for information on:
 where this task should be completed
 the maximum time allowed for completing this assessment task
 whether or not this task is open-book.
Note: You must complete and submit an assessment cover sheet with your work. A template is
provided in Appendix B of the Student User Guide. However, if your RTO has provided you with
an assessment cover sheet, please ensure that you use that.

Questions
Provide answers to all of the questions below.
1. Provide a description of each of the types of financial records in the table.
Financial record type Description
Bank deposit slip A bank deposit slip serves as a record of funds deposited
into a bank account, documenting the date, amount, and
account details of the deposit. It acts as a crucial piece of
financial documentation for both the depositor and the
bank, ensuring accurate tracking of transactions and
account balances.
Bank statement A bank statement is a comprehensive summary of all

transactions that have occurred within a specified period for
a particular bank account, including deposits, withdrawals,
and any fees or charges incurred. It serves as a primary
financial record for individuals and businesses, providing
essential information for reconciling accounts and
managing finances.
Business activity statement A Business Activity Statement (BAS) is a document used by

businesses in Australia to report and pay Goods and
Services Tax (GST), as well as other taxes like Pay As You
Go (PAYG) withholding and fringe benefits tax. It
summarizes the financial activities of a business over a
specific period, typically quarterly, and is submitted to the
Australian Taxation Office (ATO) to fulfill tax obligations.
Credit card statement A credit card statement is a monthly document provided by

credit card issuers detailing all transactions made with the
card during a billing cycle, including purchases, cash
advances, and fees. It serves as a record of spending,
payment due dates, and interest charges, aiding
cardholders in managing their finances and reconciling their
accounts.
Invoice An invoice is a commercial document issued by a seller to a

buyer, detailing the products or services provided, their
quantities, prices, and any applicable taxes or discounts. It
serves as a formal request for payment, establishing an
obligation for the buyer to compensate the seller for the
goods or services rendered.
Journal entry A journal entry is a chronological record of financial

transactions, where each entry documents the date,

Financial record type Description
accounts involved, and the amounts debited or credited. It

serves as the foundation of double-entry bookkeeping,
ensuring accurate recording of business activities and
facilitating the preparation of financial statements.
Payroll / wages report Payroll records document the compensation paid to

employees, including wages, salaries, bonuses, and
deductions for taxes and benefits. These records are crucial
for ensuring accurate payment to employees, compliance
with tax regulations, and tracking of labor costs for
businesses.
Merchant statement A merchant statement is a document provided by a

payment processor or acquiring bank to a merchant,
summarizing the transactions processed through credit and
debit card payments. It details fees, chargebacks, deposits,
and other financial information related to card transactions,
helping merchants reconcile their accounts and understand
their processing costs.
Transaction report A transaction report is a detailed record of individual

financial transactions, typically generated by banks,
financial institutions, or businesses to track specific
activities. It includes information such as transaction dates,
amounts, parties involved, and any associated fees, serving
as a valuable tool for monitoring cash flow, identifying
trends, and ensuring accuracy in financial management.
2. Provide a description of each of the type of budgets in the table.
Budget type Description
Cash budget A cash budget is a financial plan that outlines anticipated

cash inflows and outflows over a specific period, typically a
month or a year. It helps businesses or individuals manage
their liquidity by projecting when cash will be received and
when it will be spent, ensuring they have enough funds to
meet their obligations and achieve their financial goals.
Cash flow budget A cash flow budget forecasts the anticipated cash inflows
and outflows over a specific period, providing insight into a
company's ability to meet its financial obligations and cover
operational expenses. By analyzing expected cash
movements, businesses can effectively manage liquidity,
plan for investments, and mitigate potential cash shortages.

Budget type Description
Department budget A department budget outlines the anticipated revenues and

expenses for a specific department within an organization
over a defined period, typically a fiscal year. It serves as a
financial roadmap for departmental managers, guiding
resource allocation, expenditure control, and performance
evaluation to ensure alignment with organizational goals.
Project budget A project budget is a detailed financial plan that estimates

the costs and revenues associated with a specific project,
including expenses for labor, materials, equipment, and
overhead. It serves as a critical tool for project managers to
monitor spending, allocate resources effectively, and
ensure that the project remains within its financial
constraints.
Purchasing budget A purchasing budget outlines the planned expenditures for

acquiring goods and services needed by an organization
over a specified period, typically a fiscal year. It helps
control procurement costs, streamline purchasing
processes, and ensure that resources are allocated
efficiently to support operational needs.
Sales budget A sales budget projects the expected sales revenue for a
business over a specific period, typically a month, quarter,
or year, based on historical data, market trends, and sales
forecasts. It serves as a cornerstone for setting sales
targets, guiding marketing strategies, and evaluating the
performance of sales teams.
Wages budget A wages budget estimates the total labor costs associated
with employing staff within an organization over a specified
period, considering factors such as salaries, wages,
benefits, and payroll taxes. It helps businesses plan and
control labor expenses, ensuring that staffing needs are
met while maintaining budgetary constraints.
Master budget (i.e., A master budget is a comprehensive financial plan that

organisation wide budget) consolidates all individual budgets within an organization,
providing an overview of expected revenues, expenses,
and financial performance for a specific period, typically a
fiscal year. It serves as a roadmap for management,
guiding strategic decisions, resource allocation, and
performance evaluation across various departments and
functions to achieve organizational objectives.

3. Explain each of the terms in the table that are factors to consider in preparing financial and
statistical reports for a business.
Term Explanation of the term
Cash flow Cash flow refers to the movement of money into and out of
a business over a specific period, indicating its liquidity and
ability to meet financial obligations. Factors to consider in
preparing financial and statistical reports include cash
inflows from sales, investments, and financing, as well as
cash outflows for expenses, debt repayment, and capital
investments, ensuring a comprehensive understanding of
the company's financial health and operational efficiency.
Covers "Covers" in the context of financial and statistical reports for

a business typically refers to the extent to which revenue
generated covers various costs incurred by the business.
Factors to consider include gross profit margin, which
assesses how much revenue remains after deducting the
cost of goods sold, and contribution margin, which
measures how much revenue covers variable costs to
determine the profitability of products or services.
Expenditure Expenditure refers to the money spent by a business to

acquire goods, services, or assets necessary for its
operations. Factors to consider in preparing financial and
statistical reports include analyzing expenditure patterns,
controlling costs, and evaluating the efficiency of resource
allocation to ensure sustainable financial performance and
profitability.
Occupancy rates Occupancy rates represent the proportion of available

space or capacity that is currently being utilized by a
business, typically in industries like hospitality, real estate,
or transportation. Factors to consider in financial and
statistical reports include analyzing occupancy trends,
optimizing pricing strategies, and managing resources to
maximize revenue and profitability while ensuring
operational efficiency.
Sales performance Sales performance rates measure the effectiveness of a

business's sales efforts in generating revenue, typically
expressed as a ratio of actual sales to target sales. Factors
to consider in financial and statistical reports include
analyzing sales trends, assessing the impact of marketing
initiatives, and identifying opportunities for growth or
improvement to optimize overall sales performance.
Stock (inventory) level Stock (inventory) level refers to the quantity of goods or

materials held by a business at a specific point in time.

Factors to consider in financial and statistical reports
include monitoring stock levels to avoid stockouts or
overstocking, optimizing inventory turnover to minimize
holding costs, and ensuring timely fulfillment of customer
orders to maintain customer satisfaction and profitability.
Staff costs Staff costs encompass the expenses associated with

employing personnel within a business, including salaries,
wages, benefits, and payroll taxes. Factors to consider in
financial and statistical reports include analyzing staff costs
as a percentage of revenue, assessing productivity levels,
and managing labor expenses to ensure operational
efficiency and profitability.
Variances Variances represent the differences between actual

financial or operational performance and planned or
budgeted amounts. Factors to consider in preparing
financial and statistical reports include analyzing variances
to identify areas of deviation from expectations,
investigating the root causes of discrepancies, and
implementing corrective actions to improve future
performance and achieve organizational goals.
Wastage Wastage refers to the unnecessary or inefficient use of

resources within a business, leading to increased costs and
reduced profitability. Factors to consider in preparing
financial and statistical reports include identifying sources of
wastage, implementing measures to minimize losses, and
optimizing resource utilization to improve operational
efficiency and financial performance.
Yield Yield typically refers to the output or return generated from

a specific input or investment within a business operation.
Factors to consider in financial and statistical reports
include analyzing yield metrics to assess efficiency,
optimize resource allocation, and maximize profitability,
ensuring that resources are utilized effectively to achieve
desired outcomes.
Income Income represents the revenue earned by a business from

its operations, investments, or other sources, contributing to
its overall financial performance. Factors to consider in
preparing financial and statistical reports include analyzing
income streams, assessing their reliability and
sustainability, and identifying opportunities to enhance

revenue generation to support business growth and

profitability.
Commercial account activity Commercial account activity refers to the transactions and
interactions conducted by businesses with their commercial
accounts, such as purchases, sales, and payments. Factors
to consider in preparing financial and statistical reports
include analyzing account activity patterns, monitoring cash
flow, and evaluating the effectiveness of financial
management strategies to support business objectives and
ensure regulatory compliance.
Commission earnings Commission earnings represent the income earned by

individuals or entities for facilitating sales or transactions on
behalf of a business, typically based on a percentage of the
sale value. Factors to consider in preparing financial and
statistical reports include tracking commission payments,
assessing sales performance, and optimizing commission
structures to incentivize sales representatives and
maximize revenue generation.
Daily, weekly and monthly Daily, weekly, and monthly transaction reporting involves
transaction reporting documenting and analyzing financial activities within
specific timeframes to monitor performance, identify trends,
and make informed decisions. Factors to consider in
preparing financial and statistical reports include ensuring
accuracy, timeliness, and relevance of data, as well as
tailoring reporting frequency and format to meet the needs
of stakeholders and support effective financial
management.
4. Explain the importance of a budget and budget control for a business.
Budgets play a crucial role in providing businesses with a roadmap for financial planning
and decision-making. They serve as a guide for allocating resources effectively, setting
targets, and evaluating performance against predefined goals. By establishing clear
financial expectations, budgets help businesses anticipate and prepare for future expenses,
manage cash flow, and identify potential areas for cost savings or revenue growth. Budget
control ensures that actual financial activities align with planned expenditures, enabling
businesses to identify variances, take corrective actions, and maintain financial discipline.
Ultimately, effective budgeting and budget control contribute to improved financial stability,
operational efficiency, and long-term sustainability for businesses of all sizes and industries.
5. List two techniques a business can use for maximising budget performance.

1. Variance analysis: This technique involves comparing actual financial results to

budgeted amounts to identify discrepancies or variances. By analyzing these
differences, businesses can pinpoint areas where actual performance deviates from
the budget, allowing them to take corrective actions promptly. For example, if
expenses exceed the budgeted amount, management can investigate the reasons
behind the overspending and implement measures to control costs.
2. Continuous monitoring and adjustment: Rather than treating the budget as a static
document, businesses can adopt a dynamic approach by continuously monitoring
their financial performance and making adjustments as needed. This technique
involves regularly reviewing budget assumptions, revising forecasts based on
changing market conditions, and reallocating resources to align with strategic
priorities. By staying agile and responsive to evolving circumstances, businesses
can optimize budget performance and adapt to new challenges and opportunities
effectively.
6. Outline the term budget variance.
Budget variance refers to the difference between the actual financial results and the
budgeted amounts for a specific period, typically a month, quarter, or year. It is calculated
by subtracting the budgeted amount from the actual amount, resulting in either a positive or
negative variance. Positive variances indicate that actual results exceed budgeted
expectations, while negative variances signify that actual results fall short of the budget.
Budget variances are essential for assessing the effectiveness of budgeting and financial
management practices, identifying areas of success or concern, and guiding decision-
making to improve future budget performance.
7. Document the reporting that is completed for the following cycles/periods and write down a
procedure for each that is relevant to a hospitality business.
Cycle What reporting should happen A relevant procedure
Monthly Monthly reporting should include The relevant procedure for this
the preparation and distribution of period involves conducting monthly
financial statements such as the inventory counts to ensure
income statement, balance sheet, accurate stock levels and reconcile
and cash flow statement to provide any discrepancies in the inventory
an overview of the company's records.
financial performance. Additionally,
comparative analysis between
actual financial results and
budgeted amounts, along with
explanations for significant
variances, should be provided to

assess performance and guide

decision-making.
Quarterly For the Quarterly period, The relevant procedure for this
comprehensive financial reports period involves conducting a
including income statements, thorough review of operational
balance sheets, and cash flow processes and performance
statements should be prepared metrics to identify areas for
and distributed to provide improvement and develop action
stakeholders with an overview of plans for enhancing efficiency and
the company's financial effectiveness in the upcoming
performance and position. quarter.
Additionally, detailed analysis of
key performance indicators,
strategic initiatives, and variances
between actual and budgeted
figures should be included to
assess progress towards goals
and inform decision-making for the
upcoming quarter.
Annually For the Annual period, The relevant procedure for this
comprehensive financial reports, period involves conducting a
including audited financial comprehensive financial audit to
statements, should be prepared ensure accuracy and compliance
and distributed to shareholders, with regulatory requirements, as
investors, and regulatory well as to provide assurance to
authorities to provide a detailed stakeholders regarding the
overview of the company's company's financial statements.
financial performance and
compliance with accounting
standards. Additionally, an annual
report summarizing key
achievements, challenges,
strategic initiatives, and future
outlook should be produced to
communicate the company's
performance and direction to
stakeholders and the public.
8. For two different accounting software programs of your choice, write down at least one
function and one feature of each and how these can help in monitoring budgets.
1. Xero:
o Function: Cash flow forecasting
o Feature: Xero offers cash flow forecasting tools that enable users to predict

future cash flows based on historical data, scheduled transactions, and

budgeted amounts. Users can create custom scenarios, set targets, and
compare forecasted cash flows with actual performance to monitor budget
adherence, identify potential cash shortages or surpluses, and make
proactive adjustments to optimize cash management.
2. QuickBooks Online:
o Function: Budgeting
o Feature: QuickBooks Online allows users to create and track budgets for
different categories such as income, expenses, and classes. Users can set
budget amounts for specific accounts or groups of accounts, monitor actual
spending against budgeted amounts, and generate budget reports to
analyze variances and make informed financial decisions.
9. What information does an annual financial report contain and how should it be presented?
An annual financial report typically contains comprehensive financial statements, including

the income statement, balance sheet, and cash flow statement, providing stakeholders with
a detailed overview of the company's financial performance and position over the past year.
Additionally, it may include notes to the financial statements, providing further explanations
and disclosures about significant accounting policies, transactions, and events. The report
should be presented in a clear and organized manner, following generally accepted
accounting principles (GAAP) or relevant accounting standards, to ensure accuracy,
transparency, and comparability. It should include headings, subheadings, and labels to
facilitate navigation, as well as tables, charts, and graphs to present financial data in a
visually appealing and understandable format. Furthermore, the report should include a
management commentary or narrative section, discussing key achievements, challenges,
strategic initiatives, and future outlook to provide context and insights into the company's
performance and prospects.
10. Discuss how a business will show the findings of the projected budget versus the actual
budget and how this might be presented.
To demonstrate the findings of the projected budget versus the actual budget,
businesses often prepare variance analysis reports. These reports compare the
budgeted amounts with the actual financial results for a specific period, such as a
month, quarter, or year. Each line item in the budget is compared to its corresponding
actual value, highlighting any differences or variances. Positive variances indicate that
actual results exceeded budgeted expectations, while negative variances suggest that
actual results fell short of the budget. Additionally, these reports may include
explanations for significant variances, detailing the factors contributing to the
differences between the projected and actual budgets. For instance, if expenses

exceeded the budgeted amount due to unexpected increases in costs or higher-than-

anticipated sales generated more revenue than projected, these factors would be
explained in the variance analysis report.
The presentation of the projected budget versus actual budget findings can take
various forms depending on the preferences of the business and the needs of
stakeholders. Common methods include preparing visual aids such as tables, charts,
and graphs to illustrate the variances effectively. For example, bar charts or line graphs
can be used to compare budgeted and actual amounts for different expense categories
or revenue streams over time. Additionally, narrative explanations or commentary
sections may accompany the visual representations to provide context, insights, and
interpretations of the findings. These presentations should be clear, concise, and
understandable, allowing stakeholders to grasp the key findings and implications of the
budget variances easily. Furthermore, businesses may incorporate these findings into
management reports, presentations, or meetings to facilitate discussions, decision-
making, and actions to address any discrepancies and improve budget performance in
the future.

Assessment Task 2: Project

Information for students
You are required to manage finances within a budget for a case study organisation and then report
on your findings.
You will need access to:
 your learning resources and other information for reference
 software such as an accounting program or Microsoft Excel or similar
 your Café Quarterly Budget
 your Budget Report Template.
Ensure that you:
 review the advice to students regarding responding to written tasks in the Hospitality Works
Student User Guide
 comply with the due date for assessment which your assessor will provide
 adhere with your RTO’s submission guidelines
 answer all questions completely and correctly
 submit work which is original and, where necessary, properly referenced
 submit a completed cover sheet with your work
 avoid sharing your answers with other students.
i Assessment information
Information about how you should complete this assessment can be found in Appendix A of the
Hospitality Works Student User Guide. Refer to the appendix for information on:
 where this task should be completed
 how your assessment should be submitted.
Note: You must complete and submit an assessment cover sheet with your work. A template is
provided in Appendix B of the Student User Guide. However, if your RTO has provided you with
an assessment cover sheet, please ensure that you use that.

Activities
Complete the following activities.
1. Carefully read the following information.
Successful completion of this unit requires that you complete the range of tasks
listed above. It is important that you provide evidence that you have successfully
completed each task.
Below is a guide to the skills and knowledge you must demonstrate when you are
completing each activity step. We have provided several documents to assist you
and you will find these in the student resources.
You will need access to:
 your learning resources and other information for reference
 software such as an accounting program or Microsoft Excel or similar
 your Café Quarterly Budget
 your Budget Report Template.
 space for a meeting.
What do I need to demonstrate?

During this task, you will be required to demonstrate a range of the skills and
knowledge that you have developed during your course. These include:
 managing a budget for a business over a three-month period that meets the
specific business’ needs and including reviewing operating procedures and
sourcing new suppliers.
 Allocating budget resources including:
o allocating funds according to budget and agreed priorities.
o discussing changes to income and expenditure priorities with colleagues

prior to implementation.
o consulting with, as well as informing staff about resource decisions.
o promoting awareness of the importance of budget control.
o Maintaining resource allocation records.
 Monitoring financial activities against a budget over the three-month period

including:
o identifying and using financial records to check actual income and
expenditure against budget.
o making sure that the reference records used are accurate.

o Identifying and reporting significant deviations
o Investigating options for more effective management of deviations.
o advising colleagues of budget status in relation to targets.
 Identifying and evaluating options for improved budget performance including:
o Assessing existing costs and resources and proactively identifying areas

for improvement including:
 discussing desired budget outcomes with colleagues.
 undertaking research to investigate new approaches to budget

management.
 defining and communicating the benefits and disadvantages of new

approaches.
 factoring in the impacts on customer service levels and on

colleagues when developing new approaches.
 presenting clear and logical recommendations for budget

management.
 Completing financial reports relating to the budget including:
o completing the required financial and statistical reports according to

required timelines.
o preparing and presenting clear and concise information to enable
informed decision making.
How will I provide evidence?

Your assessor will provide you with templates to complete each task. You will find
some detailed information about providing evidence; this will include:
 a completed Café Quarterly Budget
 a completed Budget Report.
You will need to complete each activity and submit the completed templates at the
end of each step completed.
2. Carefully read the following scenario.
You are the café manager of a popular café within the Blue Healer Hotel and Spa.
The owner has provided you with the budget for the next quarter and it is part of
your responsibility to allocate resources and manage the finances within the
budget.
The budget has been increased in month three as this is a popular month where
lots of visitors stay at the Blue Healer and neighbouring guest houses as there is a
music festival on. As such, additional wait staff will be hired on a casual basis and

less private catering jobs will be booked in as the café will be at its peak.
Additional information:
 The business uses local suppliers but due to a recent drought the cost of meat
with the usual supplier, Fresh Farms, went up by 7% last month.
 The café serves breakfast, light meals, light dinners and sharing plates,
smoothies, coffee, pastries and is a local favourite for its homemade iced tea.
 Due to the clientele of the hotel and health spa, and the area within which the
Blue Healer is located, there have been a number of requests for more
vegetarian and vegan options.
 Apart from you and the owner (you also cook and prepare food) there is full-
time chef named Navneet, two part-time kitchen porters and casual wait staff
employed.
 There has been a pattern of food wastage in the past two months with too
much fruit purchased that spoiled before it could be used as the iced tea
became so popular that not as many smoothies were made and sold.
 The food budget has blown out over the past three months, but the owner can’t
increase it as the profit from the café is being invested into building and
landscaping works to create an outside undercover area that will double the
capacity of the café.
 The business uses Wave Accounting free online software for recording income
and expenditure but makes use of Excel spreadsheets for budgeting and
planning purposes.
3. Review past information and future budget and plan fund allocation.
Review the following:
 Case study and additional information above
 Café Quarterly Budget – budget page
 Café Quarterly Budget – past information page
Look at the cost of sales figures related to food and beverage purchases which is
the food and beverage budget that is allocated to you.
Do some research and source some local meat suppliers in your area and check
out the costs of menu items you have planned for previously in the past, or meals
you are familiar with and see what that 7% could look like and the impact over a
three-month period. Bring this information with you to the meeting in the next
activity step to provide recommendations to the owner.
Think about how you can work effectively with the budget allocated to you and the

changes you could make to manage the finances more effectively.

Make notes on your research and findings for use in the following activity.

4. Have a meeting with the owner to discuss the budget and fund allocation.
Now that you have reviewed all the information, have a meeting with the manager
(your assessor) at the date and time advised to discuss any concerns, priorities and
changes you would like to make before you allocate the funds. Review the new
suppliers you have sourced with your assessor.
During the meeting, you will need to demonstrate effective communication skills
including:
 speaking clearly and concisely
 using non-verbal communication to assist with understanding
 asking questions to identify required information
 responding to questions as required.
5. Allocate funds.
Using the Café Quarterly Budget template – Fund allocation page, allocate the
funds for the quarter to the relevant areas and what you will purchase from existing
or new suppliers. Make notes in the relevant column to support your choice and
rationale. Add or delete rows as necessary and apply cell formatting and the use of
formula functions as necessary.
Submit to your assessor.
6. Meet with your team.
Briefly meet with Navneet (your assessor) to discuss the resource allocations and
the planning for the next quarter in relation to fresh produce, reduction of wastage
and recipe variation.
Make sure that you discuss the importance of sticking to the budgeted allocations
and discuss ways that food wastage can be avoided to ensure the budget is met.
During the meeting, you will need to demonstrate effective communication skills
including:
 speaking clearly and concisely
 using non-verbal communication to assist with understanding
 asking questions to identify required information
 responding to questions as required.
7. Monitor activities – month 1.

It is the end of month 1. You have kept to the budget and the funds have been
allocated as you planned for.
Using relevant software (such as an accounting program or Microsoft Excel or
similar) and the exact figures from your fund allocation document, enter the
expenses you have incurred over the first month exactly as they are represented in
your fund allocation page of your spreadsheet.
Print a report of the entries or take a screenshot and submit to your assessor.
It is the end of month 2. You have kept to the overall budget, but funds have had to
be rearranged in the following ways:
 There was an accident when unloading the vegetable crate one week and all
the produce was spoiled. You had to purchase a second crate which pushed
your amount spent with the vegetable supplier up by 10%.
 To accommodate for the overspend, you reduced the amount spent on cakes
and pastries by that same amount and baked inhouse.
Enter the expenditure figures into the software you are using as outlined in your
fund allocation document but consider the information above and work out the
variances.
It is the end of month 3. The following has happened:

Due to recent environmental conditions, less people came to the local area than
planned for and many people cancelled their accommodation at Blue Healer. Some
of the food for the first week had already been ordered and as such – there was a
lot that went to waste. The figures have been calculated for the month based on 4
weeks. $6000 was spent on food in preparation for the increased numbers but
during the first week there was a total waste of 35%. Many items were able to be
frozen, and as such the budget can be amended for the next quarter to try and
recoup some of the losses. The following three weeks the same amount was spent
as budgeted for the two prior months, being $3,750 per week and a total of $6000
for the month was spent on beverages.
Enter the expenditure figures into the software you are using as outlined in your
fund allocation document but consider the information above and work out the
variances.

10. Develop an actual budget from the past three months.
Develop an actual budget using the past information and your financial records you
complied and submitted in the previous activity steps. Make a new page in the Café
Quarterly Budget spreadsheet and name it ‘Actual Budget’.
Assume the following information:
 Variances of 10% are not considered unusual.
 The actual income is as follows:
Account Month 1 Month 2 Month 3
Income
Food sales 36,500 35,800 34,000
Beverage sales 23,000 24,500 21,000
Catering fees 10,000 10,200 7,200
Total income 69,500 70,500 62,200
 The operating expenses are all correct.
Submit to your assessor. Your assessor will provide you timelines for completing
this task which you must adhere to, and you will be assessed on this.
11. Conduct research and write a budget report.
Compile a report to the owner about what has occurred over the past three months.
You will also need to conduct some research when writing this report as outlined
below. Submit in the timeframe as provided to you by your assessor.
Include the following in your report:
 The status of the budget and the variations in relation to what was projected –
use percentages and figures to discuss a detailed account of what has
occurred in the overall actual budget in relation to projections.
 Lessons learned from what has occurred in the past quarter and ideas for how
you can prevent similar situations in the future by improvements that can be
made.
 Undertake research to investigate new or different approaches to budget

management and then outline the benefits and advantages of different
approaches you could take and how these approaches may impact on
customer service levels or staff.
 Provide recommendations for budget management for the next quarter and

provide estimates for this period.

Make sure you use correct budget terminology, and your report is neatly presented,
clear and concise with the use of statistical representations.
Use the Budget report template to guide your work.
Submit to your assessor. Your assessor will provide you timelines for completing
this task which you must adhere to, and you will be assessed on this.
Budget Report Template

Introduction
Outline the purpose of the report and the time period it covers.
 This report aims to provide an overview of budget allocation, actual expenditure, and
variances observed in the preceding three months. It will cover the current budget status,
variations in comparison to the overall actual budget and the previous quarter. Additionally, the
report will explore innovative budget management approaches and their advantages, along
with suggestions to avert similar situations in the future. The final section of the report will offer
recommendations for budget management in the upcoming quarter spanning from January to
March 2024.
Body
Outline:
 The status of the budget and the variations in relation to what was projected – use
percentages and figures to discuss a detailed account of what has occurred in the overall
actual budget in relation to projections.
 In the initial month, sales and costs showed minimal variances, as the budget remained
consistent for the first two months, incorporating a 7% increase in meat prices. However, in
the second month, an accident during vegetable crate unloading resulted in the loss of all
produce. To compensate, a second batch had to be procured, leading to a 10% rise in
expenditure with the vegetable supplier. In response, spending on pastries and cakes was
decreased, and inhouse cooking was increased to offset the overspending.
 Moving to the third month, adverse environmental conditions led to a decrease in customer
visits, resulting in significant food waste, especially considering the pre-ordered items for the
initial week. Despite an anticipation of increased expenses, $6,000 was spent on food, with a
substantial 35% waste in the first week. Considering the possibility of revising the budget for
the next quarter to recover losses, freezing certain items was explored. Drink expenses
remained consistent at $3,750 per week, totaling $6,000 for the month, aligning with the
previous two months.

 The gross profit fell short of the planned amount by 13%, primarily due to a 36% drop in sales
during the third month. Notably, the cost of sales decreased by 39%, attributed to waste
reduction. It is imperative to find an alternative meat supplier as Farm Fresh charges 7%
higher prices.
 Lessons learned from what has occurred in the past quarter and ideas for how you can
prevent similar situations in the future by improvements that can be made.
The main lessons learnt from this quarterly budget allocation include planning for discrepancies in order to
better allocate the budget and conducting a market and environment analysis is essential while having
different quotes from several suppliers and choosing the best one in the market. Budget needs to be
reconsidering with new approaches and waste reduction.
 Undertake research to investigate new or different approaches to budget management and

then outline the benefits and advantages of different approaches you could take and how
these approaches may impact on customer service levels or staff.
1. Incremental Budgeting: Incremental budgeting involves calculating a budget by adjusting

the actual expenditures from the previous period. This adjustment is often represented as a
percentage, signifying an increase or decrease based on factors such as organizational
needs and circumstances. It provides a straightforward and simple method, ensuring
continuity and standardization.
Advantages:
 Simplicity in application.
 Ensures continuity.
 Facilitates standardization.
2. Zero-Based Budgeting (ZBB): Zero-based budgeting requires a detailed explanation of all

budget expenditures and line items on the balance sheet to create a new budget. Unlike
the traditional approach of modifying historical actuals, ZBB starts fresh with no
consideration for previous period expenditures.
Advantages:
 Improved accuracy.

 Optimized resource allocation.
 Increased efficiency.
 Fosters congruence.
 Aligned with business objectives.
3. Continuous (Rolling) Budgeting: Continuous budgeting is a rigorous technique where a

new budget period is continuously added to replace the previous one as it expires.
Advantages:
 Staying ahead of the curve.
 Mitigating risks.
 Driving performance.
 Maintaining relevance.
4. Activity-Based Budgeting (ABB): Activity-based budgeting determines the total cost

required to achieve anticipated levels of activities. This top-down strategy involves
identifying and thoroughly examining all cost-driving activities.
Advantages:
 Elimination of redundancy.
 Effective cost management.
 Enhanced efficiency.
Recommendations
Provide recommendations for budget management for the next quarter and provide estimates for
this period.
1. Involve all stakeholders and maintain transparent communication.

2. Stay informed about market conditions, the business environment, and
3. competition.
4. Seek feedback from suppliers, staff, and customers to enhance cost
5. planning and meet demand efficiently, minimizing waste.

6. Anticipate budget discrepancies and develop contingency plans for

7. unexpected situations.
8. Set realistic budget expectations.
9. Distinguish between fixed and variable costs.
10. Categorize all expenses systematically.
11. Evaluate the adequacy of the budget.
This document is Café Quarterly Budget for the unit SITXFIN009

Income
Food sales 36,000 36,000 52,000
Beverage sales 24,000 24,000 40,000
Catering fees 10,000 10,000 5,000
Total income 70,000 70,000 97,000
Cost of sales
Food purchases 15,000 15,000 24,000
Beverage purchases 5,000 5,000 12,000
Total cost of sales 20,000 20,000 36,000
Gross profit 50,000 50,000 61,000
Operating Expenses
Wages 17,000 17,000 21,000
Insurance 600 600 600
Utilities 2,000 2,000 2,000
Rent 5,000 5,000 5,000
Marketing 2,000 2,000 2,000
Phone 100 100 100
Live music 500 500 500
Repairs and maintenance 500 500 500
Total operating expenses 27,700 27,700 31,700

Net profit/loss 22,300 22,300 29,300

This document is Quarterly budget for the unit SITXFIN009
Last month's cost of sales
Last month's food and beverage budget: $20,000

Supplier Category Cost
Fresh Farms (meat) Food $8,500
Donna's wholesale pastries (cakes and pastries) Food $2,000
Wild Beans (coffee beans and flavoured syrups) Beverages $4,000
Fizzy Lizzy (soft drinks) Beverages $1,200
Fromo Fruits (fruit for smoothies) Beverages $1,000
Byron's Baking Supplies Food $500
Coles (milk and sundries) Food $1,500
Ferguson Family Farms (vegetable crates) Food $2,000
Total $20,700
Food sales $14,500

Beverage sales $6,200
This document is Quarterly budget for the unit SITXFIN009

Fund allocation
Food
Type Month 1 Month 2 Month 3
fresh market (meat) $8,500 $8,500 $8,500
Donna's wholesale pastries (cakes and pastries) $2,000 $1,800 $2,687.50
Byron's Baking Supplies $500 $500 $1,188
Coles (milk and sundries) $1,500 $1,500 $2,188
Ferguson Family Farms (vegetable crates) $2,000 $2,200 $2,688
Total $14,500 $14,500 $17,250
Beverages
Type Month 1 Month 2 Month 3
Wild Beans (coffee beans and flavoured syrups) $4,000 $4,000 $4,000
Fizzy Lizzy (soft drinks) $1,200 $1,200 $1,200
Fromo Fruits (fruit for smoothies) $1,000 $1,000 $1,000
Total $6,200 $6,200 $6,000
Combined total $20,700 $20,700 $23,250

Actual Budget

Income
Food sales 36,500 35,800 34,000
Beverage sales 23,000 24,500 21,000
Catering fees 10,000 10,200 7,200
Total income 69,500 70,500 62,200
Cost of sales
Food purchases 15,000 15,000 24,000
Beverage purchases 5,000 5,000 12,000
Total cost of sales 20,000 20,000 36,000
Gross profit 49,500 50,500 26,200
Operating Expenses
Wages 17,000 17,000 21,000
Insurance 600 600 600
Utilities 2,000 2,000 2,000
Rent 5,000 5,000 5,000
Marketing 2,000 2,000 2,000
Phone 100 100 100
Live music 500 500 500
Repairs and
maintenance 500 500 500
Total operating
expenses 27,700 27,700 31,700
Net profit/loss 21,800 22,800 -5,500


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SITXFIN009 Manage finances within a budget

manage finances within a

Student Assessment Tasks – SITXFIN009 Manage finances within a

Student Assessment Tasks – SITXFIN009 Manage finances within a

Student Name: Yuhua Zhang Student ID: 14075655

Unit SITXFIN009_Knowledge questions and Project

√ First Attempt  Second Attempt

Trainer Name Sujeet

Student Signature: Yuhua Zhang Date Submitted: Due 18 Feb, 2024

Trainer’s name: Sujeet

Student Assessment Tasks – SITXFIN009 Manage finances within a

Student Assessment Tasks – SITXFIN009 Manage finances within a

Assessment for this unit

Student Assessment Tasks – SITXFIN009 Manage finances within a

Assessment Task 1: Knowledge questions

 adhere with your RTO’s submission guidelines

 answer all questions completely and correctly

 submit work which is original and, where necessary, properly referenced

 submit a completed cover sheet with your work

 avoid sharing your answers with other students.

 where this task should be completed

 the maximum time allowed for completing this assessment task

 whether or not this task is open-book.

Student Assessment Tasks – SITXFIN009 Manage finances within a

1. Provide a description of each of the types of financial records in the table.

Financial record type Description

Bank statement A bank statement is a comprehensive summary of all

Business activity statement A Business Activity Statement (BAS) is a document used by

Credit card statement A credit card statement is a monthly document provided by

Invoice An invoice is a commercial document issued by a seller to a

Journal entry A journal entry is a chronological record of financial

Student Assessment Tasks – SITXFIN009 Manage finances within a

Financial record type Description

accounts involved, and the amounts debited or credited. It

Payroll / wages report Payroll records document the compensation paid to

Merchant statement A merchant statement is a document provided by a

Transaction report A transaction report is a detailed record of individual

2. Provide a description of each of the type of budgets in the table.

Budget type Description

Cash budget A cash budget is a financial plan that outlines anticipated

Student Assessment Tasks – SITXFIN009 Manage finances within a

Budget type Description

Department budget A department budget outlines the anticipated revenues and

Project budget A project budget is a detailed financial plan that estimates

Purchasing budget A purchasing budget outlines the planned expenditures for

Master budget (i.e., A master budget is a comprehensive financial plan that

Student Assessment Tasks – SITXFIN009 Manage finances within a

Term Explanation of the term

Covers "Covers" in the context of financial and statistical reports for

Expenditure Expenditure refers to the money spent by a business to

Occupancy rates Occupancy rates represent the proportion of available

Sales performance Sales performance rates measure the effectiveness of a

Student Assessment Tasks – SITXFIN009 Manage finances within a

Term Explanation of the term

materials held by a business at a specific point in time.

Staff costs Staff costs encompass the expenses associated with

Variances Variances represent the differences between actual

Wastage Wastage refers to the unnecessary or inefficient use of

Yield Yield typically refers to the output or return generated from

Income Income represents the revenue earned by a business from

Student Assessment Tasks – SITXFIN009 Manage finances within a

Term Explanation of the term

revenue generation to support business growth and

Commission earnings Commission earnings represent the income earned by