Trainers Assessment Resource
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 1 of 23
ASSESSMENT 1 –REPORT WRITING
STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
For the assessment, students must write a detailed report on how they would undertake the task of
gathering, record and analyse data for management budgetary use. Students may choose a company of
their choice for this report in consultation with their instructor, or may alternatively use the company
model detailed below (MJ Holdings Inc)
Students must answer the following in their report:
What data is necessary for the purpose of creating cost and operating budgets?
- Be specific, i.e. cash flow reports for the last 3 months, P&L statements for the last 12
months etc
What sort of a system would you set up to retrieve the necessary data?
- How would you ensure the appropriate departments staff are aware of what is required
of them?
- How would you go about gathering the data?
How would you code and classify the data appropriately for management use?
How would you store the data?
- Briefly discuss how you would ensure security of the financial data
- Also discuss how you would ensure the financial data is protected from being erased or
lost.
What steps should you undertake to ensure the data is accurate and reliable?
Give a detailed explanation on how you adequately ensure your interpretation of the data is
eliable and consistent with management performance strategies.
- What constitutes valid analysis?
- What auditing requirements would be involved in this process?
- What steps would you take to ensure your reasoning is logical, transparent and
supported by the data?
This assignment should be submitted in the form of a detailed written report.
Assessment Summary
You are to submit the following evidence / perform the following tasks
Develop and submit your written report as outlined above
Business Example (MJ Holdings Inc)
MJ Holdings Inc. is a Medical Supplies company in East Melbourne specialising in orthopaedic
instruments and disposable items. The company has 67 employees employed in their customer service,
accounts, managements, sales, marketing and costing departments. Their annual turnover is
approximately $2.5M with profits of $970,000 recorded last year. Management requires operating and
cost data for budgetary decision making and has asked you to gather record and analyse the data for
their use.
This assessment is due on: __________________________________
ASSESSMENT 2 – PROJECT
STUDENT INFORMATION
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 2 of 23
This information is to be handed to each student to outline the assessment requirements
For this assessment, students are to utilise the data in the Appendices regarding Ed’s Whitegoods. The
instructor can role-play the part of Edward Tan, the proprietor and will give any additional
information required, including company policies and procedures, milestones etc.
Students are to undertake the following:
List all personnel you would consult with in order to gain adequate advice prior to commencing
your reports.
Consult with your instructor to determine management requirements
Prepare a 1 year budget & projected financial statement including:
- Sales forecast, taking into account additional information in Appendix 5
- Estimated expenses / inventory costs
- Estimated profits
Ensure report layout and format comply with management information requirements, are clear
and e
or-free
Note: Students must use appropriate spreadsheet or accounting software to undertake this task.
Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of
the available information at the time of creating the budget. Changes in circumstances should be
anticipated as best as possible with particular emphasis on financial risks and creating protection
strategies in accordance with organisational procedures. Any liaison with the proprietor of the
usiness to determine milestones, policies, goals etc. should be ca
ied out with your instructor, who
will role play the relevant parts.
Assessment Summary
You are to submit the following evidence / perform the following tasks
Develop and submit your annual budget as outlined above
This assessment is due on: __________________________________
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 3 of 23
ASSESSMENT 3 –PROJECT
STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
Students are required to compare their budgeted figures against actual figures located below:
Ed’s Whitegoods 1 year result:
Total Sales: $1,623,000
Total Purchases: $701,400
Total Expenses: $402,000
Students are to undertake the following:
Prepare a variance analysis between budgeted and actual figures
Ensure report demonstrates major differences
What was the discrepancy?
- Is the discrepancy a positive or negative one?
- Locate the area and give at least 5 reasons why the discrepancy may have occu
ed
Utilise the data provided to determine the effectiveness of the cost budgeting techniques used
Lastly, students should give recommendations as to how their variance may be co
ected for
future budgets for the business.
The variance report should be submitted along with a written report detailing the student’s answers to
the above questions.
Assessment Summary
You are to develop and submit the following:
revised budget
budget assessment report
feasibility report
This assessment is due on: __________________________________
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 4 of 23
ASSESSMENT 4 – RESEARCH & QUESTIONING
Submission details
Students will use their online study time to prepare for answers to the following questions and submit
softcopies of the answers.
You must submit soft copy of your answers in a word document.
Upload the softcopy on the link provided in the eLearning site.
See instructions below for details.
Instructions:
· To be prepared on an individual basis.
· Assessment will only be
accepted if they have an assignment cover sheet on them signed by the student.
· Students must provide detailed answer for every question along with relevant examples.
· There is no word limit, but answer for every question should be reasonable in size,
preferably ½ a page.
· The Traine
Assessor may further prompt and question in order to receive answers of
appropriate quality and to verify the authenticity
You are required to do research and type answers for following questions in a word document:
Assessment Questions:
1 List and describe 3 major cost elements of any product
2 Provide 5 examples of committed fixed costs
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 5 of 23
3 Provide 5 examples of discretionary fixed costs
4 Describe how you measure cost behaviour as a function of appropriate cost drivers?
5 Provide 5 examples of cost drivers
6 Describe the following methods of measuring cost functions
Engineering
Analysis
Account Analysis
High-Low
Method
Visual Fit
Method
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 6 of 23
7
Calculate the variable rate using the High Low method of measuring cost function.
High capacity High capacity January: 55,000 machine hours
Cost of electricity $80,450
Low capacity September: 30,000 machine hours
Cost of electricity: $64,200
8 Continuing from the previous question, what is the fixed cost?
9 What is the difference between cash and accrual accounting?
10 What is the difference between single and double entry accounting?
11
Describe the key management information requirements required when determining the
structure and format of budgets and reports
12 What is meant by "standard costing and variance analysis"?
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 7 of 23
13
List and explain 5 different measures of variance to be considered when developing an annual
udget
Variance Type Variance Explanation
14
Provide 5 different reasons (each) for a favourable market price variance, and adverse
material price variance.
15 What are the key purposes / objectives of creating and using an annual budget?
16 What are the key purposes / objectives of forecasts?
17 What is the importance of milestones and KPI's when budgeting / forecasting?
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 8 of 23
18 What information is needed in order to create an accurate financial forecast for a business?
19
Outline 9 different expenditure and revenue items that are relevant to budgeting and
forecasting
20 Describe the steps that are in most company budgeting procedures
21 What is the difference between job costing and process costing?
22 Explain 3 key processes for recording and securely storing data
FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 9 of 23
Appendix 1 – Big Ed’s Whitegoods Ltd
Edward Tan owns a medium sized whitegoods retail store. He provides you with the following
information which is cu
ent as of 1 October XXXXXXXXXXAll sales and purchasing figures are inclusive of
GST.
Assets:
Cash (Bank) $245,000
Computer equipment $16,400
Delivery Van $26,000
Phones $2,300
Office Equipment $4,500
Debtors $13,580
Stock $117,303
Expenses
Phone Service / Calls $780
Electricity $1590
Gas $600
Water $550
Insurance $1300
Payroll $465,000
Cleaning $850
Finance Costs $1650
Advertising $560
Rent $25,000
Petrol $560
Accountants Fees