manage budgets and financial

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timer Asked: Nov 23rd, 2017

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this is all about questions and answer. there's nothing hard and difficult .

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ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 STUDENT ASSESSMENT MANAGE BUDGETS AND FORECASTS FNSACC503 Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 1 of 9 ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 Instructions You are advised to commence work on your assessment from week 1 and all tasks must be submitted by the due dates provided. 1. All assessments must be completed and delivered individually. Where an assessment involves group discussions, you should consider the input of your group but submit an individual assessment to your trainer. 2. Please read all instructions on completing each assessment. Instructions for completion are provided at the beginning of each assessment. 3. All written answers must be typed in a word document using Arial font, 12 size and single spacing if similar instructions are not provided in the assessment. 4. Your trainer will not be able to assist you in answering questions. However, your trainer will address any issues concerning questions requiring further explanation. 5. You may refer to your student learning resources or any other relevant resources when completing your assessment. 6. Assessments are due for submission as specified in the assessment schedule. Any variations to this arrangement must be approved by your trainer prior to the due date for submission. 7. You have access to computers which are equipped with Microsoft suite of products or any other relevant software and printing facility. 8. Use assessment templates if provided, to complete relevant sections of the assessment. You can also create your known templates for assessment evidence. 9. You must achieve a satisfactory result for all tasks to achieve competency in this unit. 10. All assessment answers should be submitted to the trainer in required format (soft or hard copy) as per trainer instructions with completed assessment cover sheet (if required). Assessment Schedule Task Task 1 Task 2 – Q1 (a - b) Task 2 – (Complete) Due Date Week 1 Week 2 Week 3 Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 2 of 9 ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 Task 1: Theory Assessment Student Instructions 1. 2. 3. 4. 5. Type all the answers in a word document if required. You can conduct internet research to answer these questions. Provide explanation of 2-3 lines when answering ‘Describe’ questions. Provide detailed workings for calculations questions. Provide answers in table format wherever possible. Question 1 – Question and Answers Answer the following questions in writing. 1. What are the major objectives of a budget system? 2. Describe the features of cash, revenues and expenditures. Give examples of each category with a linked budget objective. 3. Consider the first line example in the table provided in appendix. Complete the table describing the items listed in the first column by making selections from the following terms. • Category = Cash/ Revenue/ Expenditure or Capital • Financial Statement = Cash flow/ Financial performance/ Financial position/ Capital • Objective = Increase/ Report Revenue/ Manage Expenditures/ Cash and/or Capital 4. Explain how organisational goals determine the master budget. 5. You are responsible for the manufacturing budget preparation. What other forecast or budget/s affects the raw materials budget and in what way? How would a growth in the sales forecast affect the raw materials budget? What will this growth mean to the budgeted statement of financial performance and what should be considered in terms of the capacity of the production department and costs across all departments? 6. The disability manager, Helene, is constantly asking you to increase her budget. You have explained to her on a number of occasions that the board has officially adopted the budget. What will you do if her request begins to take up too much of your time? 7. What accounting standard is relevant to the presentation of financial statements including budgets? Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 3 of 9 ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 8. You present the financials at the annual general meeting. Separately list three groups of stakeholders you expect to be at this event. How should each group be treated/ what would you expect from them? 9. How can the sales forecast spreadsheet be used to show which period profit milestones occur? 10. How can management use budgets to encourage staff to meet profit/ sales milestones? 11. Describe the benefits of using graphs to explain budget spreadsheets. 12. Which budget is the GST amount transferred to: a) For cash payment? b) At the end of the period? 13. What needs to be covered when researching information for the cash flow budget? 14. Identify four factors of management intention in regard to the cash flow budget. 15. Who is legally responsible for supervising the budget? 16. Voyager is a Telco with an innovation that will generate it significant market share growth. This will result in many new customers in several new areas. Telco is aiming for much higher incomes. Consequently it has adopted an organisational expansion policy seeking to maximise income. Voyager is about the revenue forecast but unsure of their total budget expenses. Explain to Voyager executives the importance of considering related expenses and discuss some of their controls as planning for its aggressive revenue expansion policy. 17. Describe how balances are transferred into and out of the budgeted statement of cash flows to explain the statement and how the closing cash is calculated. 18. How can timesheets assist the accountant to make the annual reporting timeline? 19. What is the budget calendar? 20. Describe how the accountant assists decision making by identifying budget trends. 21. What three steps should be undertaken when making assumptions about feasibility? 22. The business Challenger Co. is expanding. The marketing manager advises the junior accountant that a new sales region will double the revenue assumption and that there are no foreseeable expenditures. What is the significance of the revenue assumption to completing the sales forecast? What steps should the junior accountant take in preparing the assumption for the sales forecast? 23. What is unusual about the related expense assumption for Challenger’s expansion? Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 4 of 9 ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 24. List several criteria management might use to complete the project selection process. 25. Prepare a budget versus actual variance analysis report for the end of March for the community services organisation Discoverer. They made an original assumption based on the respite manager’s undertaking that a new food expense would be year to date $900 with the actual amount spent $2,700 at the 31.3.20XX. Include food for this month separately on the report for $300 actual and only $100 budgeted. Include whether the amount is favourable (F) or unfavourable (U), show the percentage (%). 26. Prepare a request for budget revision form provided in appendix to accompany the variance report. Note that the request is due to a new program which had an original incorrect assumption. 27. How frequently should the budget review occur? Under what conditions is this different and when will the review occur in that case? 28. When are rolling budgets appropriate and inappropriate? What other factor must be considered when adopting a policy for using them? Appendix Reports Analysis Table Budget Revision Form Reports Analysis Table.docx Budget Revision Form.docx Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 5 of 9 ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 Task 2: Case Study and Practical Assessment Student Instructions 1. 2. 3. 4. 5. Type all the answers in a word document if required. You can conduct internet research to answer these questions. Provide explanation of 2-3 lines when answering ‘Describe’ questions. Provide detailed workings for calculations questions. Provide answers in table format wherever possible. Question 1 – Speedo Pty Ltd The owner of a new consultancy called Speedo Pty Ltd asked you to prepare the master budget for them. The consultancy consists of the owner who charges out at $68 per hour and the junior staff who charges out at $42 per hour. The owner has advised you that forecast hour for each quarter as below. The consultancy has a credit system of payments with 60% of payment received the quarter in which they are earned and the remaining 40% earned the following month. The opening accounts receivable is $13,200 incl GST. The GST is accounted for on an accrual basis. Additional Information • • Accounting Standards: http://www.aasb.gov.au/Pronouncements/Current-standards.aspx Organisational policies and procedures: http://startupjunkies.com/extras/acct-policies.pdf a) Revenue and cash budget Prepare a quarterly revenue receipts forecast and cash collections forecast for the next financial year. Hours Senior Junior September 250 210 December 230 220 March 230 210 June 230 220 Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 6 of 9 ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 b) Capital Expenses Budget The owner will purchase a new vehicle in the September quarter for $27,500. In December they will purchase photocopiers for $5,500 and a computer system for $5,500 with an upgrade in March for a further $2,750. Each item is inclusive of GST. 2013 Motor vehicle Printing Electricity Rent Sep 1,300 200 600 4,500 Dec 1,495 50 555 4,500 Mar 300 200 500 4,500 Jun 450 50 500 4,500 Prepare the Capital Expense Budget for the financial year. c) Budgeted statement of financial performance Depreciation is $700 per quarter and tax payable at 30% of net profit per quarter. Wages for the senior staff are $8,000 per quarter and junior $5,000 who receive a $1,000 bonus in June depending on the performance of the junior staff and the financial performance of the business. Complete the expense budget, budgeted statement of financial performance: you will need to add the non-GST items to the expense budget, and the cash flow budget, which has an opening cash balance of $42,000. The opening GST liability is $2,000 and the opening PAYG tax instalment is $2,500. d) Budget Graphs Use the cash budget to prepare a graph of quarterly revenue received, payments made and closing cash position. e) Budget Assumptions 1. List the various assumptions and parameters used to create above mentioned budgets. 2. List some of financial risks associated with presented financial information and suggest ways to counter them. Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 7 of 9 ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 f) Role-play You will meet the organisation CEO (your assessor) and undertake the following: 1. Explain the budgeting techniques used and forecast for organisations performance in upcoming financial year 2. Provide opportunity to ask questions 3. Respond appropriately to all questions asked. 4. Seek and obtain all approvals for proposed financial budgets in accordance with management objectives and financial and organizational policy. During the roleplay, you will be assessed on your communication skills including: • • • • • • • • • • Content Professionalism Clarity Timely verbal exchanges language and concepts appropriate for the audience Handling a questions and answer session Uses collaborative and inclusive techniques to build rapport establish and maintain positive relationships with a range of stakeholders Selects and uses appropriate conventions and protocols when communicating with his team members Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 8 of 9 ABN: 57 169 281 501 E: admissions@sydneymetrocollege.edu.au W: www.sydneymetrocollege.edu.au Sydney (Head Office): Level 2, 16-22 Wentworth Avenue Surry Hills NSW 2010 T: 02 8937 0991 Melbourne: Level 1 &2, 213-215 Lonsdale Street Melbourne VIC 3000 T: 03 0 9077 0758 References / recommended resources Manage budgets and forecasts - FNSACC503, Enhance Your Future. Manage budgets and forecasts - FNSACC503 Issue Date: 19/09/2017 Page 9 of 9
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