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GSB003_Assessment 2_Guide PAGE 1 MANAGING FINANCIAL RESOURCES Assessment Task 2: Additional Guidance This document provides additional guidance to assist students as you undertake MFR Assessment Task...

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GSB003_Assessment 2_Guide PAGE 1
MANAGING FINANCIAL RESOURCES
Assessment Task 2: Additional Guidance
This document provides additional guidance to assist students as you undertake MFR Assessment Task 2.
Note that the requirements for Assessment Task 2 are set out in the Unit Guide, and the information in this
document is intended to be supplementary to that.
Assessment Purpose
The underlying learning objectives that we are seeking students to demonstrate are that you:
• Have knowledge of good practice budget principles and can apply these principles within a work context
to evaluate a chosen budget process,
• Understand key costs
evenues and be able to interpret how they ‘behave’ within a work context,
• Are able to draw on the budget process evaluation and the analysis of key costs
evenues to develop
and propose recommendations for improvement,
Selecting a budget process
Students may choose any suitable budget for analysis. This could include, as examples, a sales budget for a
usiness unit, a division, a State or a region. It could be a an expense budget or a profit & loss budget for a
usiness unit, a division/department a State or a region. It could be a Project budget or a BAU (Business as
usual) budget.
It makes sense to choose a budget for which you have involvement and are able to access information. It may
e a budget for which you are accountable or may be a budget that you provide input to or a budget into which
your cost is allocated. If you don’t have accountability for a budget, it may make sense to select a budget that
you may have involvement with in the future.
It is recommended that you clearly identify the chosen budget and its scope and context within the organisation.
ThiThe s would be well placed in the Introduction section of your report. The context of the budget has an
important influence on your evaluation of the budget process.
Research
Your research will typically involve two aspects:
1) Academic research that is required in order to become informed about good practice budgeting
principles and costing concepts. It may also include researching potential impacts to budgeting or
costings that are emerging from the use of data analytics. This research will build intellectual rigour and
mastery of business and management disciplines (graduate attribute 1 and 5).




GSB003_Assessment 2_Guide PAGE 2

2) Workplace research, including examining workplace documents and conducting interviews with
stakeholders associated with the budget. This will build effective communication and interpersonal
skills (graduate attribute 4).
Generally, it follows that more thorough research leads to stronger analysis, stronger arguments and more
obust and well supported recommendations.
Analysis
Analysis involves drawing meaning from the results and goes beyond providing a description of what the budget
process is and what the key costs
evenues are. Thus analysis should compare the workplace budget process
against good practice principles and within the context of the organisation so as to identify gaps and areas for
improvement. Consider what is working well and what could be improved.
Some further tips in relation to analysis:
• We do not need to see the actual budget or budget “numbers”. You do NOT need to provide the actual
udget figures or to have access to the budget figures. The assessment relates to an evaluation of the
udget process as an mechanism for managing financial resources, and also on the costing structure (ie
knowing what the main cost elements are within the budget). It is not an evaluation of whether the budget
was met or not, or whether the budget was underspent or overspent (although that may be considered
within the evaluation). Having access to the actual budget may assist, but is not essential to being able to
espond to this assessment.
• In your assessment, we would expect you to demonstrate that you have knowledge of what constitutes
good practice budgeting (both preparation and monitoring) and are able to apply this in identifying any gaps
in your chosen budget process
• We expect that have developed an understanding of the key costs (and or revenues) and also the factors
that drive (influence) those.
Developing academic argument
Arguments are essentially the key points that you wish to make. They reflect key themes identified in the
esearch and associated analysis. We expect that your paper is structured / organised along these key themes.
Themes usually only emerge after you have done some initial research. Thus, after doing research, stop and
eflect on what you have found. Identify the important themes/issues that are apparent. These become your
arguments. Build your paper around these arguments. This may then require further research as you dig deeper
to provide information and analysis to support these arguments.
Arguments lead to and support conclusions and or recommendations.
Arguments must be supported by evidence (theory plus findings). Evidence is provided by theory content
(supported by credible references) and by findings (supported by workplace research).
The ability to refine all your findings and to distil them into clear arguments is an important written
communication skill. This will assist you in being able to convey the most important imformation and stay within
word count.




GSB003_Assessment 2_Guide PAGE 3

Recommendations
This is an important section of this assessment and should be considered throughout your research and
analysis. The assessment speccifically requires a critique and recommendations to follow from the critique.
Note that recommendations must be informed judgements, decisions or insights reached by reasoning and
supported by evidence. They should emerge from the key arguments and analysis. Every recommendation must
e clearly traceable to the supporting arguments and its associated evidence.
Presentation, format and style
This assessment is required to be submitted in a Report format. Please ensure you are confident on what a
Report entails - and its major sections. Refer to the Communication Skills Handbook and Academic skills
materials for information.
Note that a Report format is not just a case of inserting report headings. The content under each heading must
provide the content required of that section. As examples, the Executive Summary is NOT an introduction, nor a
methodology section. Similarly, the Introduction section should provide an introduction to the report, including
purpose, scope and any limitations.
The style in a report is objective and neutral. Avoid emotive language and bias and write in third person
language.
A report is not a learning journal – it is focused on what you have found and explains those results – it does not
explain the process you followed or your ‘learning journey’. It must lead to conclusions.
Cover sheets are not required.
For further information, please speak with your facilitator.
Answered Same Day Sep 15, 2021

Solution

Sarabjeet answered on Sep 16 2021
150 Votes
Running Head: Budget Analysis
Budget Analysis
Student Name:
Unit Name:
University Name:
Date:
Executive Summary
This report aims to analyze the Cadwell Construction and Interiors Pty Ltd budget process and understand its monitoring and preparation procedures. This analysis determines its success in promoting good organizational plans, goals, and strategies. The report assesses the preparation process for the August 2018 monthly report, including timing, timetable, cost, and revenue. Also, the review considers dividing costs into variable costs or fixed costs as well as determining cost drivers. Additionally, the report also determines the information source, applicable cost calculation model or system, and meeting requirements. Exploration also considers measuring and monitoring performance based on budgets, internal communication processes, and measures to motivate employees to promote the achievement of organizational goals.
Contents
Executive Summary    2
Introduction    3
Budgetary Aspects Enhancing Planning, Strategies, and Goals    3
Budget Preparation Timeframes and Timing    4
Key Budget Costs, Variables, and Revenues    4
Budget Costing Systems or Models    7
Monitoring and Measurement of Performance    8
Recommendations Drawn from the Budget Analysis    10
Budget Pitfalls    10
Conclusion    11
References    12
Introduction
The budgeting process is essential for monitoring company performance. This process enables the company to estimate costs and expenditures so that it can plan various activities and funding sources to fund its projects. This report assesses the key aspects of the Cadwell Constructions Company's budgeting process. The organization is situated in Sydney, New South Wales, or was established in 1999. This account evaluates how the budget allows Cadwell to play a role in organizational planning, strategy, and goal setting. In addition, the report also shows the company's budget preparation time and schedule, as well as the cost and revenue ratio. The report also categorizes the cost and revenue of the budget and tracks the source of budget information.
Budgetary Aspects Enhancing Planning, Strategies, and Goals
The budgeting process allows industries to make business plans. Cadwell calculates the difference between your budget and the actual number and monitors its level of performance (Cadwell, 2019). The company has managed to achieve a sale YTD of $ 6,679,873, in contrast to its budget of $ 6,700,000. Achieving monthly forecasts will motivate workers.
A one-month budget allows a business to target sales, costs, or gross turnover for the next month depend on differences from the past month. Cadwell aims to generate sales of 2,900,000$ in September. This number is obtained by taking into account sales within the actual budget for August (Askarany, 2011). We also have a strategy to reduce construction costs in September from $ 2,707,527 in August to $ 2,128,000. Monthly costs will be reduced from $ 416,647 to $ 320,000 and the net income budget will increase from $ 39,600 to $ 44,000. The additional profits make sure the maximization of shareholder wealth concerning higher dividends or more value of their holdings. Cadwell might also improve the working situations of employees, thereby improving their performance and job satisfaction (Carey et al., 2014).
Financial planning allows the business to anticipate upcoming construction opportunities. The company received $ 586,000 worth of construction bids out of $ 9,837,184 worth of bids. Depend on a 14% bid win rate, the business forecasts worn bids worth $ 2,934,850 in September (Davis, 2007). The strategic plan will include hiring more employees, which will increase the estimated monthly employment cost to $ 220,000, compared to the actual cost in August of $ 156,010
Budget Preparation Timeframes and Timing
Preparation of the Cadwell budget includes calculating monthly expenses or income, tracking progress, as well as determining spending levels (Cadwell, 2019). The company's budget proposal will be reviewed or executed by July 30 of all accounting periods. The draft shows year-end figures and forecast figures for the next year's budget. Quarterly performance audits adjust your yearly budget to reflect the proposed level of performance (Dugas, 2012). Quarterly reviews will take place by October 10, January 10, and April 10. On July 30, the annual report will be reviewed repeatedly and adjusted to reflect the budget for the following year. The budgeting process is common to all accounting phases.
Key Budget Costs, Variables, and Revenues
Construction costs
The business derived budget construction costs by critically assessing the estimated lifespan of the project and its feasible income and expenditure (Cadwell, 2019). The budget includes construction costs with several cost items for projects of various organizations. The total annual construction cost was $ 2,734,400. This amount consisted of costs associated with the subcontractor (Ott, 2016). For example Site management, labor, PM, materials, project preparation, and project coordination. Additionally, the quote includes finishing costs. These expenses fall into the hard and soft cost categories.
Contract wages
Budget contract wages include forecasts of future costs related to the contractual agreements among the business or other parties. Agreement wages typically take the structure of salary paid to the contractor and other remuneration created as settled upon at the beginning of such a contract (Cadwell, 2019). Budget contract wages can be either an estimate of future costs determined by an existing contract or a potential future contract in the normal course of business. The organization estimated the total contract wage for the year to August 30, 2018, to be $ 2,734,400 (SEN, 2009). The contract wage included labor costs for various construction activities of the company. A review was done.
Project...
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