Assessment
T-1.8.1
Details of Assessment
Term and Yea
TERM 2 , 2018
Time allowed
Week 2, 3, 4, 5, 6, 7
Assessment No
1
Assessment Weighting
60%
Assessment Type
Portfolio of activities (Written)
Due Date
Week No. 7
Room
1
Details of Subject
Qualification
BSBFIM501Â Diploma of Leadership and Management
Subject Name
Finance
Details of Unit(s) of competency
Unit Code (s) and Names
BSBFIM501 Manage Budgets and Financial Plans
Details of Student
Student Name
College
AAI
Student ID
Student Declaration: I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source.
Signature: ___________________________
Date: _______/________/_______________
Details of Assesso
Assessor’s Name
SINDHU NAIR
Assessment Outcome
Results
|_| Competent |_| Not Yet Competent
Marks
/ 60
FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive improvements:
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I also am aware of my appeal rights and reassessment procedure.
Signature: ____________________________
Date: ____/_____/_____
Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback
|_| Student did not attend the feedback session.
XXXXXXXXXXFeedback provided on assessment.
Signature: ____________________________
Date: ____/_____/_____
Purpose of the Assessment
The purpose of this assessment is to assess the student in the following learning outcomes:
Competent
(C)
Not yet Competent
(NYC)
Plan financial management approaches
Implement financial management approaches
Monitor and control finances
Review and evaluate financial management processes
Assessment/evidence gathering conditions
Each assessment component is recorded as either Satisfactory (S) or Not Satisfactory (NS). A student can only achieve competence when all assessment components listed under Purpose of the assessment section are Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NS (Not Satisfactory) is eligible for re-assessment.
Resources required for this Assessment
1. Upon completion, submit the assessment to your trainer along with assessment coversheet
1. Refer to the subject notes on E-Learning prior to responding to the tasks/questions
1. Any additional material will be provided by Traine
Instructions for Students
Please read the following instructions carefully
· This assessment has to be completed |X| In class |X| At home
· The assessment is to be completed according to the instructions given by your assessor.
· Feedback on each task will be provided to enable you to determine how your work could be improved. You will be provided with feedback on your work within 2 weeks of the assessment due date. All other feedbacks will be provided by the end of the term.
· Should you not answer the questions co
ectly, you will be given feedback on the results and your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.
· If you are not sure about any aspects of this assessment, please ask for clarification from your assessor.
· Please refer to the College re-assessment and re-sit policy for more information.
Week 1:
Task 1: Give some examples for the following costs:
Direct cost
Material, labour, power, rent, commission on sales
__________________________________________________________________________________
Indirect cost
insurance, rent ,power,
eakdowns. Administrative salaries phone expenses
__________________________________________________________________________________
Fixed cost
Materials, labourers , insurance
__________________________________________________________________________________
Variable cost
Materials, utilities, machine rental , __________________________________________________________________________________
Step cost/Semi variable cost
__________________________________________________________________________________
__________________________________________________________________________________
Task 2: Classifying costs and Monitoring process for actual expenditure:
Part a:
A company incurs the following costs (as shown under ‘Workings’) during a manufacturing process. Identify them with one of the cost elements (direct material, direct labour or other costs) by ticking the appropriate column. Also indicate by a tick whether it is a direct or an indirect cost.
Workings:
Costs
Direct material
Direct labou
Overhead
Other cost
Direct cost
Indirect cost
1
Raw materials
x
x
2
Electricity
x
x
3
Foreperson’s salary
x
x
4
Telephone calls
x
x
5
Machine operators’ wages
x
x
6
Rent and rates for factory premises
x
7
Insurance on machinery
x
x
8
Maintenance materials
x
x
9
Cleaners’ wages
x
x
10
Gas
x
x
11
Telesales wages
x
x
12
Nuts and bolts
x
x
Part b:
i) Complete the following variance report.
PRODUCT
BUDGETED
SALES
ACTUAL
SALES
VARIANCE
Qty
$
Qty
$
Qty
$
Product X
100
20 000
120
26 000
20
6000
Product Y
150
18 000
160
17 600
10f
400uf
Product Z
200
40 000
190
36 100
10f
3900uf
Total
450
78000
470
79700
40
1900f
ii) Complete the missing figures in the following cost of production report for product X.
Cost of production report
Budget
$
Actual
$
Variance
$
Direct material
8 950
9600
650(U)
Direct labou
17 900
18 260
360u
Factory overhead
6540
6 420
120(F)
Part c:
From the information given, calculate and write down all possible variances (units or dollar amounts as applicable) in the variance columns stating whether they are favourable (F) or unfavourable (U).
Budget
Actual
Variance
(Total)
Qty
$
Sales – Product A
Units
900
950
50f
Sales – Product B
Units
1 200
1 180
200 uf
Sales – Product C
Units
1 500
1 650
150f
Sales – Product A
$/Unit
10
9
1u
Sales – Product B
$/Unit
12
14
2f
Sales – Product C
$/Unit
15
16
1f
Production – Product A
Units
1000
1 100
100f
Production – Product B
Units
1 200
1 320
120f
Production – Product C
Units
1 800
1 780
20u
Raw material X
$
5 700
6 875
1175u
Raw material Y
$
10 500
10 230
270f
Raw material Z
$
7 200
7 476
276f
Task 3a: Dissemination of budgets and financial plans
List the ways by which dissemination of budget and action requirements takes place.
__________________________________________________________________________________
__________disseminating the relevant details of the agreed budget and financial plans to the team members can capably execute the required roles which is associated with the management of finance. ________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Task 3b:
Give some examples of budgets, and explain which parties these should be discussed with.
Operating Budget
Master budget
Financial budget
Week 2: Case Study – Task 4
Performance indicators
Rural fire services consist of a number of volunteers who are drawn from the local communities. These volunteers are trained by the State’s fire
igade. They are called upon to assist the permanent staff in case of emergency. Depending on the training and their capability they are provided with protective clothing where the well trained volunteers get a full set of uniform and the beginners get an identifying cap. These volunteers also help in fund raising activities. The money collected goes into funding the unit.
Performance indicators linked to the activities of an organisation are necessary for the organisation to assess its performance. The performance indicators used by commercial organisations are motivated by the need to make a profit for them to survive and provide returns to the investors. The performance indicators for not-for-profit organisations are some what different to those of commercial organisations. Not-for-profit organisations are those organisations that provide services for organisation members or for other people but not interested in profits. This is mainly due to the fact that these organisations survive on grants and donations. Examples of such organisation include charities, churches and political parties. Some not-for-profit organisations are substantial organisations such as the International Red Cross that has a large budget and complex operations while others such as local sports teams are run for a local community.
What might be some of the performance indicators used to assess the performance of such units?
You might investigate such a unit or look at other not-for-profit groups and review how they go about measuring performance.
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Task 5: Performance Indicators.
Explain whether the items in the ‘Workings’ area are financial or non-financial performance indicators.
Workings:
Items
Financial
Non-Financial
Reason
1
The absenteeism in the paint shop of Ru
er Toy Manufacturing Company caused a loss of 28 productive hours in the past week.
x
2
The gross profit to sales ratio of the cosmetic section of XYZ Department Stores was 60% for May.
3
There was one reported accident in the cutting section of Dale Furniture Manufacturers during the month of June.
4
Accounts receivable as at 31Â December was 15% of the sales for the year.
5
Net profit to sales ratio of XYZ Department Stores was 8% for May.
Task 6: Classification of work description:
Identify the following as Trading (T), Manufacturing (M) or service (S) business.
0. a grocery store ( T )
0. a furniture wholesaler ( T )
0. a legal firm ( S )
0. a plumber ( S )
0. a dentist ( S)
0. a bakery ( M )
0. a food processing factory ( M)
0. a restaurant ( S )
0. a super market ( T)
0. a doctor’s surgery ( S )
0. a shoe store ( T )
Task 7: Fees Budget
The Suburat Medical Centre, located in an affluent subu
, provides a 24-hour medical service to the
esidents. A recently recruited employee has been asked to help the management with the
preparation of a fees budget for January 20X1and is provided with the following information:
• Forty-five per cent of patients pay in cash when services are performed, and those insured claim refunds from their medical funds. The fee charged to the patients is $25.
• Fifty-five per cent of the patients are accepted on bulk billing, where the fee charged is $19.
• The number of patients expected for consultation/treatment in January 20X1 is 1700.
Show how the fees budget will be prepared.
Workings:
Suburat Medical Centre
Fees budget – January 20X1
$
Fees receivable in cash
19125
Fees receivable from bulk billing
13005
Total fees
32130
Task 8: Sales Budget and production budget
The projected sales in units for Parker and Company for the month of January 20XX is
12000. The inventory of finished goods on 1 January 20XX was 6,000. The company expects
the ending inventory for January to be 7000 units and expects to maintain it at that level fo
the coming months