BSB519-i5 Diploma of Leadership and Management
Unit Code: BSBFliV15CM
Unit Name: Manage Buclgets and Financial Plans
Trainer Name: Jacob / Faizur
Student Name:
Student ID:
Date:
Assessment Items Result
S = Satisfactory
NS = Not Satisfactory
Assessment Task 1 a Case study s I NS
Assessment Task 2 a Project S I NS
Assessment Task 3 Q Assignment S I NS
Final Assessment Result for this unit C I NYC
Feedback to Student:
Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I am also aware of my appeal rights.
Signature: Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback
Signature:
AI(ÄJP- BSBFIM501-V2.O 1 I
TCI: 21-23
Tel:
Email: ‘.vmv.aic.edu.au
Assessment Cover Sheet
Course Diploma of Leadership and Management
BSB51915 Term/Block
Unit Code BSBFW1501
Unit Name Manage budgets and financial plans
Assessment Assessment Task 1 — Case study Time allowed
Date Room
Instructions for completing this form
Complete Sections A and B
Attach this two-page cover sheet to your assessment submission
Submit your assessment to your trainer/assessor
Retain Section B as proof of submission Please refer to the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the Student Handbook for more information.
Section A — Student Details (student to complete)
Student Name 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.
I have read the Assessment and Student Handbook and I understand all the rules and guidelines for undertaking assessments.
give permission for my assessment material to be used for continuous improvement purposes.
Signature: Date submitted:
Section B — Receipt (student to keep a signed copy of this section as proof of submission)
(Student to complete) (Assessment receiver to complete)
Student name: Date received:
Student no: Received by:
Task No..
1
TCI: 21-23
Tel: Email:
Task 1
Assessment Instructions
This is an individual assessment. You are required to demonstrate the ability to plan financial management approaches. In response to the scenario providecl, you are required to answer a series of questions. You must answer all of the questions below, and include examples where appropriate. Please ensure that you have answered each question with an appropriate level of detail. If you need help understancling any questions, ask your assessor to explain.
To be deemed competent you will need to successfully demonstrate the following: You must complete and successfully answer all questions.
Question ‘l
Read the case study, then complete the questions that follow.
Case study
I-lasan works for a company that manufactures shower screens. He is the cost centre manager for the production area. For the four products they manufacture, sales at the end of February are in the table below.
Product Unit Value $
Basic 150 37,500 250 er unit
Standard lus 250 125,000 500 per unit)
Deluxe 200 150,000 750 er unit
Su er deluxe 100 100,000 1000 per unit
The above production is standard from month to month and the costs involved are below.
Product Labour per unit (hours) Material cost per unit ($) Overhead contribution per unit $)
Basic 2.0 100 10
Standard lus 3.0 250 20
Deluxe 4.0 480 34
Su er deluxe 5.0 600 43
Labour is costed at $50 per hour and includes contributions to leave entitlements and superannuation. Material costs are fixed with a supply contract for the standard quantities required each month.
Hasan is advised that the company has just won an extra special order for the supply of shower screens for a refit of a hotel, and the products are required by the end of March. The quantities and agreed per unit price are below.
Product Re uired Unit Price a reed er unit $
Basic 30 275
Standard lus 50 550
Deluxe 10 750
Su er deluxe 5 900
Production for March will now be the usual monthly production as per February above, plus the new contract commitment.
3
Tel:
v,n
Question 2
Read the case study, then complete the questions that follow.
Case study
Hugo is the manager of a medium-sized retailing operation and is concerned about the collection of monies for goods sold. He has a current policy for collecting monies from credit customers and all goods are sold on credit. He has actual sales data for the first six months of the financial year and projected sales figures for the six months to credit customers. I-le wishes to consider the impact of adjusting the policy and has two proposals in mind. The policies are below:
Timing of payment Payment under current olic Projected payment under olic o tion ‘1 Projected payment under polic o tion 2
1 st month after sale 60% of monies collected
2nd month after sale 25% of monies collected 5%
3rd month after sale 14% of monies collected 7% 3%
4th month after sale
His sales figures are as follows.
Sales fi ures
Actual for first six months Predicted for next six months
Jul $100,000 Janua $120,000
August $115,000 Februa $125,000
September $115,000 March $125,000
October $100,000 A ril $120,000
November $120,000 Ma $120,000
December $140,000 June $110,000
There is one additional question Hugo wants answered: is there any advantage from a cashflow perspective of offering a two percent discount if accounts are settled in the first month? His view is that most of his customers would pay in the first month and the remaining would pay in the next month, and no bad debts would need to be written off.
1 . Describe a budget development coordination and approval process.
2. For what reasons might you adjust the format or methods of communication about budgets to employees?
3. Analyse the optional policies and make a recommendation to Hugo as to which policy he should consider as the better option. Include in your response a projected cashflow spreadsheet for each of the proposals.
4. Provide feedback on Hugo’s additional question.
5
Tel: 21-23
TCI:
for Email:
Assessment Cover Sheet
Course Diploma of Leadership and Management
BSB51915 Term/Block
Unit Code BSBFlM501
Unit Name Manage budgets and financial plans
Assessment Assessment Task 2 —Project Time allowed
Date Room
Instructions for completing this form
Complete Sections A and B
Attach this two-page cover sheet to your assessment submission
Submit your assessment to your trainer/assessor
Retain Section B as proof of submission Please refer to the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the Student Handbook for more information.
Section A — Student Details (student to complete)
Student Name 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.
I have read the Assessment and Student Handbook and I understand all the rules and guidelines for undertaking assessments.
give permission for my assessment material to be used for continuous improvement purposes.
Signature: Date submitted:
Section B — Receipt (student to keep a signed copy of this section as proof of submission)
(Student to complete) (Assessment receiver to complete)
Student name:
Student no: Received by:
Task No.:
1
FOÄ:
TCI: Fax:
Task 2
Assessment Instructions
This is an individual assessment. You are required to demonstrate the ability to monitor and control finances. In response to the scenario provided, you will create a simple spreadsheet budget to capture rnonitoring information. using inforrnation provided to you by your assessor, you will then use the budget spreadsheet to produce a report on expenditure in accordance with organisationa policies ancl procedures. You will also modify a contingency plan.
If you need help understanding any questions, ask your assessor to explain.
Procedure
1 Read through the scenario provided and tasks A and B.
2. Design and develop a spreadsheet to capture budgeted and actual figures to produce a variance report.
3. Access actual budget figures from relevant managers and accounting systems (assessor).
4. Monitor and record actual figures.
5. Produce a variance report as per organisational requirements.
6. Consider the scenario information and contingency plan provided and analyse the variance report.
7. Modify the contingency and implementation plans provided in the scenario to improve effectiveness.
8. Submit all documents required in the specifications below to your assessor. Ensure you keep a copy of all work submitted for your records.
To be deemed competent you will need to successfully demonstrate the following: You must provide:
a budget spreadsheet a budget variation report a modified contingency plan and modified implementation plan.
3
TCI: 21-23
TCI:
Email: wvvr
through the second quarter (Q2), when sales data for the company’s product are in.
Consider the contingency plan and the implementation plan for the contingency below. You have already implemented a portion of the contingency plan, namely the monitoring of budget performance in the variation report you have prepared. You should now analyse the report to determine the effectiveness of the contingency plan and its irnplementation.
You have received the following feedback from team members:
full-time workers and sales people resentful of time wasting and distracting contract ernployees oveåime not used but employees resentful of suggestion it might not be approved if needed training suited the neecls of many sales team members but was not relevant to about half
sales team members were happy with the incentives program and tried hard to make sales in the third quarter (Q3); however they were also resentful at the threatening tone of emails and soon lost enthusiasrn effect of one-day training wearing off
50 percent of direct wages costs are attributable to short-term contract employees whose contracts have expired and who are no longer needed employees concerned about lack of attention paid to wastage: water; electricity: paper; raw materials employees feel left out of budgetary decision-making in general.
The managing director would like you to submit a revised contingency plan and contingency plan implementation to bring incorne and expenses under more effective control.
5
TCI:
Appendix 2 — Budgeting and finance policy
Budget preparations
The business plan will set the key parameters for all financial budgeting.
Variations to the business plan must be approved by the CEO and senior management strategic committee.
Prior period results are to be analysed to identify the profit level of cost centres, identify correlations between financial statistics and to set key performance indicators encl benchmarks for future budgets.
The budget planning committee will meet prior to budgets being developed and agree on budget parameters. The cornmittee will consist of all department rnanagers plus the CEO and finance manager.
A CAPEX budget will be developed from the approved business plan.
A detailed sales budget must be completed before completing the profit budget for the year.
A cash-flow budget covering the first three months will be prepared after the profit budget is completed.
A master budget including profit projections will be completed from which cost centre allocations will be made.
Budget notes that contain all the assumptions used in the budgets should accompany the master budget or be made available on a separate document. Where possible, the notes should justify the basis on which the estimates were made.
Overheads (non-direct expenses) will be apportioned across the cost centres equally. Exceptions need to be negotiated with relevant authorities.
All expenses and income will be spread equally throughout the year unless otherwise required by business needs or business environment.
The financial cycle for budgeting purposes will be yearly ending 30 June.
Reporting requirements Software applications to be used in reporting.
environment — Windows o accounting Information System — BRB will use MYOB AccountRight plus o data analysis — BRB will use Microsoft Excel 2007.
Actual results will be produced monthly by the MYOB accounting system. Actual variances to budget will be performed by Excel with a report prepared for senior management for significant variances.
Financial delegations
o Each manager is responsible for achieving the revenue budgets agreed to in the budget committee.
Assessment Cover Sheet
Course Diploma of Leadership and Management
BSB51915 Term/Block
Unit Code BSBFlM501
unit Name Manage budgets and financial plans
Assessment Type Assessment Task 3 —Assignment Time allowed
Date Room
Instructions ‘for completing this form
Complete Sections A and B
Attach this two-page cover sheet to your assessment submission
Submit your assessment to your trainer/assessor
Retain Section B as proof of submission Please refer to the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the Student Handbook for more information.
Section A — Student Details (student to complete)
Student Name 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.
have read the Assessment and Student Handbook and I understand all the rules and guidelines for undertaking assessments.
I give permission for my assessment material to be used for continuous improvement purposes.
Signature: Date submitted:
Section B — Receipt (student to keep a signed copy of this section as proof of submission)
(Student to complete) (Assessment receiver to complete)
Student name: Date received:
Student no: Received by:
Task No..
AIC-UP- BSBFIM501-V2.O 1 9
ii’ln]l, Australia
2938
Task 3
Assessment Instructions
This is an individual assessment. You are required to demonstrate the ability to review and evaluate financial management processes. Using the scenario information supplied, you will respond to a number of scenario tasks. You will collect and analyse financial data and make recommendations to improve existing processes. You will also create a plan to implement and rnonitor solutions. If you need help understanding any questions, ask your assessor to explain.
Procedure
1 Consider the four scenario activities below along with the scenario background information and financial information contained in the appendices of this assessment task.
2. Provide written responses to the following four scenario activities.
3. Submit a document containing your responses to your assessor as per the specifications outlined below. Ensure you keep a copy of all work submitted for your records.
To be deemed competent you will need to successfully demonstrate the following: You must provide:
provide responses to the four scenario activities provided in this assessment task
Scenario background information
Big Red Bicycle is a bicycle manufacturer based in Bendigo, Victoria. The company produces bicycles which it sells to retailers in the domestic Australian market.
The senior management structure of the company appears below:
Person Position
Michelle CEO
Tom Co eland Mana ing Director
John Black CFO
Stuart LaRoux O erations General Manager
Pat Roberts Senior Accountant
Sam Gellar Sales General Mana er
Charles Pierce Production Mana er
I-loll Burke HR Mana er
According to company strategic plans, the company had aimed to achieve a net profit before tax of $1 Actual figures showed the company fell about $175,000 short of goals.
After successful labour cost cutting measures and improved sales team performance, the company aims to generate a net profit before tax of $1 , 200,000 from Australian operations alone.
This year, in addition to Australian operations, the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales of one product.
The board of directors of Big Red Bicycles feels that more cash will be needed to make investments to achieve strategic aims. One chief risk to plans is bad debt and poor cash flow due to large and unsustainable trade debtors balances quarter by quarter.
Note: Strategic plans dictate that Big Red Bicycles must reduce its debt levels and so additional financing to increase cash flow is not an option.
AIC-UP- BSBFIM501-V2.O 05ågéA3ØfCF
Mall,
2938 for Excellence v.-.vw.aic.edu.au
Ageing Debtors budget
Role
You are the Senior Accountant. As part of your role, you will need to complete the following four activities.
Activity ‘l
As you are aware, one risk to the strategic plans of Big Red Bicycle (BRB) is bad debt and poor cash flow due to large trade debtors balances. Consider the following:
according to its policies, Big Red Bicycles offers 30 day terms to debtors currently, BRB does not train sales staff on credit terms there is currently no enforcement of credit terms warehousing of stock is expensive at current leased premises
many bicycles need to be thrown out if parts rust; this problem exacerbates the problem of waste expense.
You have the following information from the Statement of Financial Position and current ledger accounts in the electronic accounting system (MYOB AccountRight).
Account
Trade debtors 362,500
Trade creditors 80,000
Opening stock 100,000
Closing stock 300,000
Purchases
UTC2tJPOSDFjM5012V2. m
INSh’ Fax:
Mall, SA Australia
Fax: 2938
Excellence info@aic.edu.auWebsite: wwv.’.aic.edu.au
Complete the following.
I .
2.
3. On your response document, work out:
a. how many units at current variable cost would need to be producecl to achieve profit target (show calculations)
b. what the variable costs per unit would need to be to achieve profit target at current manLlfacturing capacity (show calculations).
On your response clocument, make one written recornmendation based on your analysis. To support your recommendation ensure you refer to the organisational needs or situation, and any analytical techniques used. You may also suggest possible actions for BRB to take depending on possible future scenarios.
On your response document, list three sources of information of possible use to complete this activity.
Activity 3
Soon you will need to prepare a business activity statement (BAS) for the first quarter on 2016/17.
Complete the following,
1.
2. State how many years you will need to keep GST records in order to satisfy ATO requirements.
Complete the GST budget on the following page to anticipate GST liability.
AIC-UP- BSBFIM501-V2.O -page 7 of9
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c) GST liability
Activity 4
implement
Choose one of the recommendations from Activity 1 or 2 and develop an action plan to elines and and monitor the recommendation. Ensure you include appropriate activities, monitoring, tirn accountabilities.
AIC-UP- BSBFIM501-V2.O

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