BSBFIM501 Manage budgets and financial plans

SOLUTION AT Australian Expert Writers

BSBFIM501
Manage budgets and financial plans
Assignment Activities
September intake 2018
Lecturer: Kristen Mead
Student name: LEONG YIT LONG
Student number: NVS010172L
BSB51915 Diploma of Leadership and Management
CRICOS course code: 091384C
Assignment Activity 1
Write a detailed report on an overview of the budget system that is in operation at your workplace. Make sure you present the report in a professional manner, which could be used in a real business situation if it was required.
Include the following:
Who develops the budgets?
Who do they consult?
What budgeting methods do they use?
What software do they use?
What budget periods are used?
How is budget information communicated to stakeholders?
Present the report in a professional manner that could be used in a real business situation.
The report will vary in information from workplace to workplace. You are looking for a good understanding of the budget process in the business and the makeup of the budget.
Assignment Activity 2
On the following two pages there is Omar’s Indian Restaurant Budget for 2010/11. This budget was developed in June 2010 and the actual figures for the budget were added at the end of September 2010.
You need to compare the budget and the actual figures and look for variances.
Write a report showing the variances found and indicate if you think the variance is a problem or not. Ensure to explain why you believe the variances found are a concern or why you are not concerned.
Assignment Activity 3
Write a detailed report that compares the advantages and disadvantages of both the ‘Cash System’ and the ‘Accrual system’.
Assignment Activity 4
Case study: A new budget has been in place for three months at the business you are employed by. So far, nobody has compared the actual figures with the budgeted figures. You decide to conduct this budget analysis. What financial data would you need to collect and review in order to do a thorough budget analysis? Explain your reasoning for collecting each data piece.
Assignment Activity 5
Write a list of resources that you would need in order to monitor budgets and financial plans at a business. Explain each of your reasons as to why that resource would be utilised.
Assignment Activity 6
There has recently been a large drop in sales within the business therefore you are currently implementing a contingency plan to improve sales. How do you communicate the plan to staff at your business? And how can you support the staff to implement the plan effectively?
Assignment Activity 7
A business has sales for the month of $231, 787 the sales price includes GST. What is the amount of GST collected on sales? During the same month the business has purchases of $92 400, of this $89 000 contains GST and the remainder was on GST free purchases. How much GST was paid on the purchases? How much money on GST needs to be paid to the tax department (assuming no other factors) for that month?
BSBFIM501
Manage budgets and financial plans
Written Assessment
September intake 2018
Lecturer: Kristen Mead
BSB51915 Diploma of Leadership and Management
CRICOS course code: 091384C
Q1.List six items you would expect to find in a capital budget for company with a fleet of hire cars:
Motor Vehicles
Furniture
Company building
Storage Room
Machinery
6. Software
Q2.List six different income sources you would find in a hospitality business:
Services
Investments
Events
Food & Beverage
Customers
Occupancy and Room Rate
Q3. Name four store expenses for a retail book store:
Rent
Electricity
Asset purchase – computers, books, furniture
Government Licences
Q4.If the current WorkCover % for workers in a bookstore is 1.625% and for your shop your budget has $9750 allocated for WorkCover.
What is the total wages cost allocated in that budget?
(Show calculations)
Q5. For the above gross wages calculate the $ amount of superannuation payable at the current superannuation guarantee rate in Australia (Show calculations):
Q6.Briefly explain the following budget methods:
Incremental Budgeting
An incremental budget is a budget prepared using a previous period’s budget or actual performance as a basis with incremental amounts added for the new budget period.
• The allocation of resources is based upon allocations from the previous period.
• This approach is not recommended as it fails to take into account changing circumstances
• Moreover, it encourages “spending up to the budget” to ensure a reasonable allocation in the next period. It leads to a “spend it or lose” mentality.
Zero Based Budgets
Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a “zero base,” and every function within an organization is analysed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether each budget is higher or lower than the previous one.
Sales are falling and after investigation you have discovered that some customers think the service is very poor.
Q7.What action could you take to rectify the situation and return sales back to budget forecast:
Sales are falling and after investigation you think the reason is that housing interest rates have risen and customers have less money
Q8.What action could you take to rectify the situation and return sales back to budget forecast?
Q9.Define the following accounting and budget terms:
Acceptable variance limit
An acceptable variance limit is a variance that the management are willing to accept without the need for corrective action or dramatic investigation.
Creditor
These are people of which you owe money. They may be supplier such as the butcher or rent to the landlord.
KPI
A business has performance indicators as to health of the business. These often known as Key Performance Indicators. They are statistics that managers use as a tool to help them run the business.
Superannuation
The definition of superannuation is a government regulated investment strategy designed to provide for Australian financially upon their retirement.
Contingency plan
A contingency plan is a plan that has been developed should a specific event occur such as a dramatic event that has a large impact on the budget. It will outline a plan of what to do and who would be responsible to implement the actions.
Balance sheet
A document prepared by an accountant to show all the assets and liabilities of a business at a given moment in time.
Net profit
Net profit represents the number of sales dollars remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company’s total revenue.
Operating budget
An operating budget is the annual budget of an activity stated in terms of Budget Classification Code, functional/sub functional categories and cost accounts. It contains estimates of the total value of resources required for the performance of the operation including reimbursable work or services for others. It also includes estimates of workload in terms of total work units identified by cost accounts.
Q10.How can we calculate the GST that has been included in any sale price (that has had GST applied)?
When adding 10% to the price is relatively easy (just multiply the amount by 1.1), reverse GST calculations are quite tricky:
To figure out how much GST was included in the price you have to divide the price by 11 ($220/11=$20);
To work out the price without GST you have to divide the amount by 1.1 ($220/1.1=$200)
Q11.A lawyer charges $300 an hour for advice and gives two and a half hours of advice to you about your business. How much GST is included in the invoice from the lawyer? (Dollar amount)
$300 an hour
2 and half hour = $750
GST 10% of $750 = $75 .
Q12.Briefly explain one problem that could arise from poor cash flow:
Poor relationships with suppliers – Being constantly late with payments to the suppliers may cause tension in the relationship with them. This may lead to poor service or losing them as a supplier altogether.
Q13.You have just completed a review of the budget after the first quarter of operations and need to share this information with the relevant management and staff members. Briefly explain two methods of sharing this information:
1.Staff meetings or briefing sessions – Many businesses have a daily staff briefing sessions and this is a good way to inform the staff or various things in a regular and informal way.
2.Formal meetings – If the organisation is a large one there may be several committees within the organisation, which may have need of the budget, the sales team.
Q14.List three support services that could be provided to a sales team to help achieve their budget targets:
Marketing
Store layout and planning
Advertising
Q15.You run an electrical repair business and it is known in the industry that a major new competitor may open in your area.
Who within your business who would you consult in the making of a contingency plan if the new competitor opens in your area?
Accounting personnel
Senior management
Department heads
Payrolls staff
Purchasing staff
Marketing staff
Q16. What budget items could be addressed in the contingency plan? Why?
The budget item could be addressed in the contingency plan is the equipment breakdown. The equipment is a wear and tear items. In a restaurant business the equipment such as oven will breakdown or failure to use because the continuous used of this equipment. This is why it included in the contingency plan because this equipment is expensive.

Order from Australian Expert Writers
Best Australian Academic Writers

QUALITY: 100% ORIGINAL PAPERNO PLAGIARISM – CUSTOM PAPER