Unformatted Attachment Preview
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