Trainers Assessment Resource
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ASSESSMENT 1: PROJECT
STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
For this assessment, you are required to prepare an annual budget for a business of your choice.
Students may liaise with their supervisor when choosing a business or may utilise the example of
Patrick’s Cod Fishing Ltd in Appendix 1-6.
Task: Taking into account previous years figures, available cu
ent year figures and any additional
information, you are to create an annual budget for your chosen business.
Undertake discussions with stakeholders (Your instructor will role play these parts) to
determine budget objectives and set milestones and / or performance indicators
Discuss and review assumptions and budget parameters – review these during the budget
process as needed. (Some assumptions are included in Appendix 6 for Patrick’s Cod Fishing
Ltd).
Clearly details any Cash, expenditure and revenue items
Ensure your budget objectives are clear & conform with the business’ expectations
Include milestones and performance indicators to monitor financial performance
Include a detailed
eak down of your annual budget into seasonal periods as required by the
usiness
Identify any financial risks and incorporate protection strategies according to business
Details: Students should keep the following points in mind when creating the budget
Set profit targets/goals to reflect the business’ (or Patrick’s) returns
Identify the non-cu
ent asset requirements and consider alternative asset management
strategies
Prepare cash flow projections to enable business operation in accordance with business plan
and legal requirements
Select budget targets to enable ongoing monitoring of financial performance
Relevant taxes such as GST and BAS should also be included.
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: __________________________________
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ASSESSMENT 2: PROJECT
STUDENT INFORMATION
This information is to be handed to each student to outline the assessment requirements
For assessment you are given the following information: (Please note, this information is relevant to
Patrick’s Cod Fishing Ltd. If the instructor has decided to give students a different business model to
work with, the instructor will provide different data).
At the beginning of Fe
uary 2014, the following up to date figures are now ready for your review for
Patrick’s Cod Fishing Ltd:
In the past 3 months since asking you to prepare his budget forecast, Patrick’s business has performed
as follows:
His catch for the 3 months has totalled 9,450kg
His Revenue has totalled $384,377
His business expenses have come to $332,362
Part 1: Prepare an 800 word written report discussing the following:
How has your budget matched up with actual figures?
What figures have been overestimated / underestimated?
What business milestones have been met or have fell short?
Part 2: You must now adapt your original budget to incorporate and respond to the information given
to you by Patrick. Undertake the following tasks:
Give a detailed comparison of budgeted forecasts and actual figures for the 3 month period –
include comparison trends and other graphs as required to demonstrate the information clearly
and demonstrate validity of analysis.
Prepare and analyse the budget variances
Prepare a recommendation to Patrick regarding his business’ performances and
Complete a reviewed budget taking into account the latest figures. Patrick’s goals are skill the
same – is he on track? If not, what needs to be dome for Patrick’s business to get back on track?
Are his goals too unrealistic? Complete a feasibility report answering these questions.
Prepare a report to give to Patrick (instructor) with your recommendations.
This assessment is due on: __________________________________
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ASSESSMENT 3 – 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 Define the term ‘Corporate Governance’
2 List 4 key elements of good corporate governance
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3 List and describe 4 principles of corporate governance
4 Give 3 examples of perceived disadvantages to budgeting
5 Define ‘Budgetary Control’
6 What is the difference between single and double entry accounting?
7
Pedro's Pasta purchases a car for $8,800 using a loan from the bank suppler. Refe
ing to
double entry accounting, what are the two effects of action? Show how you would record the
transaction in the ledger.
DR CR
8 What is regression analysis? What benefits are there to this technique?
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9 List and describe the four different ratio types that make up a Financial Ration Analysis
Classifying Ratio Description
10 Outline the calculation method used to determine the following profitability returns ratios.
Operating return on
assets
Return on assets
Return on total capital
11 What is meant by measures of variance? Explain how it is calculated
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12 List and explain 5 different measures of variance to be considered when developing an annual
Variance Type Variance Explanation
13
Provide 5 different reasons (each) for an favourable market price variance, and adverse
material price variance.
14
Give an example of a situation that would result in an accrued expense. What happens if the
expense isn’t accrued?
15 What is a prepaid expense? When can this be used? Give an example
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16 What is cost underestimation? What does it result in? What usually causes this?
17 What is strategic misrepresentation?
18 How can strategic misrepresentation be minimised?
19 What are the key purposes / objectives of creating and using an annual budget?
20 What are the key purposes / objectives of forecasts?
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21 What is the importance of milestones and KPI's when budgeting / forecasting?
22 What information is needed in order to create an accurate financial forecast for a business?
23
Outline 9 different expenditure and revenue items that are relevant to budgeting and
forecasting
24 Describe and compare the following forecasting techniques
Time series forecast
The Delphi Method
Executive Opinions
Forecasting
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25
List 3 common features and assumptions that are inherent in forecasting, regardless of the
method used?
26 Describe the steps that are in most company budgeting procedures
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Appendix 1 – Patrick’s Cod Fishing Ltd
Patrick is the proprietor of a Mu
ay Cod fishing business called “Patrick’s Cod Fishing Ltd”
which is located at Post Office Box 123, Newtown 2042.
Patrick possesses the necessary licence from the State Fisheries Board at $20,000.00 per Cod
Net.
Patrick grows the Cod and sells them to export wholesalers. This means that for GST purposes,
Patrick’s Cod Fishing Ltd is EXP and NCF. (That is all of his sales are GST free and he does
not have to pay any GST on expenditure items.)
Patrick is still entitled to claim the GST that he has to pay on his payments. Therefore you use
the tax code NCG, NCF and FRE where appropriate.
INFORMATION Patrick has decided he wants you to prepare an annual budget for his
operation. He states that business was very good last year, and enabled him to repay a
number of outstanding personal debts. He provides you with the following figures:
He caught 42,300kg of Mu
ay Cod
His yearly income totalled: $1,438,232
His yearly expenses totalled: $183,488
This gave him a yearly profit of: $1,254,744
He used the majority of this profit