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.
Students are required to create a 12 month operating budget for a business of your choice
(instructor may provide several business models to choose from or utilise data from Appendix
1).
The task will encompass disseminating a business’ previous year’s statements with projected
values for the coming 12 month period. Students will be required to include a
eakdown of
the 12 month budget into seasonal periods in accordance with operating trends. Your task will
also include:
Consulting with stakeholders of the business to determine mutual goals and ensure
ongoing cooperation (this can be within the context of a simulated learning
environment)
Clearly define and disseminate information about revenue and outgoings including, but
not limited to:
- Projected sales and revenue
- Payroll
- Business Expenses
- P/L Statements
- Cash flow of the business
- Relevant business taxes including GST and BAS
Present your data in a format that is easily understood and appropriate to the budget
Ensure that all your reports conform to relevant legislation and taxation requirements
Your operating budget should be
oken up into detailed budgets relevant to your chosen
usiness, such as:
Sales/Revenue Budget (Forecast)
Income Statement Budget
Cash Budget
Purchases and Production Budget
Balance Sheet Budget
Operating Expenses Budget
For any further information, you are to confer with your client (who will be role-played by your
assessor). This includes identifying the structure and purpose of the business, along with any
additional assumptions or financial data required
Assessment Summary
You are to submit the following evidence / perform the following tasks
Submit your operating budget as outlined above
This assessment is due on: __________________________________
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ASSESSMENT 2: RESEARCH AND QUESTIONING
Submission details
Students will use their online study time to prepare for answers to the following questions and
submit both hardcopies and 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 stu
dent.
· 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:
Questions
1 What is the difference between cash and accrual accounting?
2 What is the difference between single and double entry accounting?
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3
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.
4
What are performance indicators? Provide 2 different PI’s that can be used for budgets and
financial plans.
5 What is regression analysis? What benefits are there to this technique?
6 List and describe the four different ratio types that make up a Financial Ration Analysis
Classifying Ratio Description
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7 Outline the calculation method used to determine the following profitability returns ratios.
Operating return on
assets
Return on assets
Return on total capital
8 What is meant by measures of variance? Explain how it is calculated
9
List and explain 5 different measures of variance to be considered when developing an annual
udget
Variance Type Variance Explanation
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10
Provide 5 different reasons (each) for an favourable market price variance, and adverse
material price variance.
11 Describe and compare the following forecasting techniques
Time series forecast
The Delphi Method
Executive Opinions
Forecasting
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12
List 3 common features and assumptions that are inherent in forecasting, regardless of the
method used?
13 Describe the steps that are in most company budgeting procedures
14 What is performance reporting? Why is this an important part of the budgeting process?
15
The master budget requires the preparation of many detailed budgets – in what order should
these budgets be prepared?
a) Purchase, Sales, Cash, Balance Sheet, Income Statement
) Sales, Purchase, Income Statement, Cash, Balance Sheet
c) Balance Sheet, Income Statement, Sales, Purchase, Cash
d) Cash, Income Statement, Purchase, Sales, Balance Sheet
e) Cash, Purchase, Income Statement, Sales, Balance Sheet
16 What does it mean to have a favourable variance?
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17 What is the balanced scorecard, and what 4 key perspectives are integrated in this?
18
Tom Jnr. Ltd has budgeted sales and production of the next quarter as follows:
July
Sales in Units: 30,000
Production in Units: 31,800
August
Sales in Units: 36,000
Production in Units: 37,800
September
Sales in Units: ?
Production in Units: 42,600
October
Sales in Units: 48,000
Production in Units: -
Calculate the budgeted sales in units for September
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a) 40,000
) 42,000
c) 42,800
d) 44,200
e) 45,000
19
McKabe & Co. collects accounts receivable as follows:
- 30 percent in the month of sale
- 60 percent in the next month
- 8 percent in the second month after sale
- 2 percent is uncollectible
Budgeted sales (all on credit) for the next 4 months are as follows:
Fe
uary: $32,000
March: $44,000
April: $38,000
May:$46,000
What are the budgeted collections in May?
a) $40,120
) $41,170
c) $42,430
d) $42,340
e) $43,100
20 Define the following Budgeting Terms:
Zero-based budgeting
Top-Down Budgeting
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Rolling Budget
Fixed Costs
Activity-Based Costing
21
Give an example of when a budget will need to be changed in response to changing
operational requirements.
22
It is not always appropriate to base sales forecasts on cu
ent sales trends. State 3 examples of
factors besides overall demand for your product which may impact on sales in the future.
23 What is a sensitivity analysis? Discuss how this can impact the business budget
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Appendix 1
TTMT Limited.
Cash receipts journals
date Particulars folio
ec.
no.
Gst
adj.
$
disc
exp.
$
debtors
$
cash
sales
$
GST
payable
$
Sundries
$
Bank
$
1/06/2016 Sales and GST Payable CRR XXXXXXXXXX XXXXXXXXXX
4/06/2016 Sales and GST Payable CRR XXXXXXXXXX XXXXXXXXXX
6/06/2016 Commission and
GST Payable XXXXXXXXXX XXXXXXXXXX
7/06/2016 K Allen XXXXXXXXXX XXXXXXXXXX
9/06/2016 Sales and GST Payable CRR XXXXXXXXXX XXXXXXXXXX
14/06/2016 L Ha
is XXXXXXXXXX XXXXXXXXXX
17/06/2016 Interest revenue XXXXXXXXXX XXXXXXXXXX
19/06/2016 Sales and GST Payable CRR XXXXXXXXXX XXXXXXXXXX
22/06/2016 P Adams XXXXXXXXXX XXXXXXXXXX
Sales and GST Payable CRR XXXXXXXXXX XXXXXXXXXX
29/06/2016 A Jones XXXXXXXXXX XXXXXXXXXX
30/06/2016 Monthly totals XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Cash payments journal
date Particulars folio
chq
no.
ITC
adj.
$
disc
ec'd
$
creditors
$
purchases
$
ITC
$
Wages
$
Sundries
$
Bank
$
2/06/2016 Electricity XXXXXXXXXX XXXXXXXXXX
4/06/2016 Purchases and ITC XXXXXXXXXX XXXXXXXXXX