Satisfactory response

Assessment 1 Answer the following question

Q1: Explain the listed external factors that can impact on budget
development. Write your answer in 25 – 50 words for each.
a. Growth or decline in economic conditions
b. New legislation or regulation
c. The shift in market trends
d. The significant price movement for certain commodities
or items
e. Supplier availability and cost.
Satisfactory
response
Yes ☐ No ☐
Answer:
a. Growth or decline in economic conditions:
The economic conditions of a country
tend to be influenced by microeconomics as well as macroeconomic factors.
These might include the fiscal policy, monetary policy, exchange rates, the level of
unemployment, the current state of the global economy
f. New legislation or regulation: some new legislation or regulation provides a
positive impact on budget development by generating sources to generate revenue
or to minimize ways. On the other hand, it provider negative also by decreasing in
income level and generate unemployment.
b. The shift in market trends:
trends are identified by trendlines or price action that
highlight when the price is making higher swing highs and higher swing lows for an
uptrend, or lower swing lows and lower swing highs for a downtrend.
g. The significant price movement for certain commodities or items: when the price of
a commodity rises, there occurs a fall in the amount purchased. Conversely, when the
price of a commodity falls, the amount purchased increases. It also creates a situation
of demand and supply in budget development.
c. Supplier availability and cost: it can provide impact on budget development if
there will increase in the supply of product than the demand if the supplier
increases the price of the commodities if the commodities manufacturing cost
becomes higher.

 

Q2: Why is it important to get input from colleagues during the
budget planning process? Explain any three (3) points in 25 – 50
words each.
Satisfactory
response
Yes ☐ No ☐
It is important to get input from colleagues during the budget planning process because of
following reasons
1 to know colleagues expectation: in any organization, all the colleagues of the
company has to work together by sharing their views, options, and ideas. In the
budget planning process, colleagues interest and views also have to include so
that budgeting planning become fair and wider
2 colleagues know about the actual expenses and losses: the colleagues of the
company knows about the actual losses and expenses that occur in the business
which helps to determine an actual budget
3 to know about product quality: as colleagues are the one who directly deals with
the customer, so they know about customer expectation, quality, price of the
product
Q3: List the Eight (8) steps to draft a budget based on an analysis of
all the available data resources or information.
Satisfactory
response

 

Yes ☐ No ☐
The Eight (8) steps to draft a budget based on an analysis of all the available
data resources or information are:
Set goals. Goals are what want to achieve in budgeting.
Figure out what is worth.
Add up Income.
Create an Expense Tracker or Spending Diary.
Categorize your spending
Create a budget spreadsheet.
Balance Budget.
Stick to Budge
Q4: Based on the information provided below, estimate the income
and expenditure and prepare a basic budget in the template
provided.
The Melbourne Football Club and the recreational centre has the
following income and expenditure. Identify each item as income
or expenditure and fill in the template provided to get total
income and expenditure for the year. Assume one (1) season of
the game per year.
Sales:
The number of opening hours
per week: 14
The average sales per hour:
$120
Number of open weeks per
season: 30
Newspaper advertising:
Width of advert: 2 columns
Number of lines per columns:
8
Cost per line (per single
column): $3
Number of adverts: 4
Canteen Attendant:
Wage rate per hour: $30.00
Number of hours worked per
week: 25
Referee fees:
Wage rate per game: $100
Total matches per week (all
teams): 30
Satisfactory
response
Yes ☐ No ☐

1. 2. 3. 4. 5. 6. 7. 8.

Weeks per year: 30 Number of weeks in the
season: 30
Cost of Floodlights:
Watts per globe: 500W
Number of globes: 50
Hours of use: 18 hrs. per week
Number of weeks in the
season: 30
Cost per kilowatt-hour: $0.20
Note: 1 Kilowatt = 1000 watts
Game Fees:
Game fee per player: $6
Total matches per week (all
teams): 30
The average number of
players in a team: 14
Number of weeks in the
season: 30
Pitch Mowing:
Hours to mow whole of fields: 6
Number of mows per week: 1
Number of weeks in the
season: 30
Wage rate per hour: $25
Fuel cost per hour: $3.5
Team Apparel Cost:
Cost per shirt: $20
Cost per shorts: $15
Cost per socks (pair): $6
Number of players: 300
Administrative (Yearly):
Management software cost:
$1200
Computer expenses: $200
Telephone and postage: $300
Water uses: $1200
Cleaning:
The number of hours per
week: 10
Wage rate per hour: $22
Weeks per year: 30
Membership Fees:
Number of members: 500
Yearly fee per member: $150
Balls, flags and whistles:
Balls, flags and whistles per
week: $250
Number of weeks in the
season: 30

Income
Sales: $50400
Membership fees: 75000
Total Income
125400
Expenditure
Administrative cost:
2900
Cleaning: 6600
Balls,flags,whistles: 7500
Game fee: 75600
Newspaper advertising:
192

Referee fee: 90000
Total Expenditure
182792
Profit 57392

Q5: What should a budget focus on, for a restaurant chain whose
objectives are:
a. Opening one new outlet each six month
b. Building up the restaurant brand
Write your answer in 2 -3 lines for each.
Satisfactory
response
Yes ☐ No ☐
a. Opening one new outlet every six months: for that restaurant, they have
to minimize their expenses and develop a new and unique design in a
restaurant that attracts customers.
b. Building up the restaurant brand: the restaurant had to serve all types f
food items at a reasonable price and has to spend on physical
infrastructure.
Q6: Explain the importance of analysis and presentation of budget
options and recommendations in a clear format. Answer in 50 –
100 words.
Satisfactory
response
Yes ☐ No ☐

 

Budgeting is the process of creating a plan to spend money. This spending plan is
called a budget. Budgeting creates a spending plan for your money and can help
ensure there is always enough money to pay for food, bills, and other expenses.
Having a budget is a good tool to avoid credit card debt and promotes saving.
menu analysis is essential to creating a strategy for improving your restaurant’s sales
and success. By taking a deep dive into our menu, we’ll see how our food costs and
profit margins stack up.
Q7: Explain any three (3) ways to circulate and communicate a draft
budget to colleagues and managers for input. Write your answer
in 100 – 150 words.
Satisfactory
response
Yes ☐ No ☐
The three (3) ways to circulate and communicate a draft budget to colleagues and managers for input are:
1 Focus on how the budget supports the organization’s mission and goals
It is equally important to present a budget by focusing on the actual numbers and how they
support your organization’s mission and goals.
2 Discuss the variables that impact the budget: the variables that can impact the
budget has to be discussed with colleagues so that everyone will aware of the
budgeting.
3
Focus on transparency:
Stakeholders expect greater levels of transparency, for all financial and strategic plans.
Institution officials must look at the future financial position of the institution, not just the
current trend of the budget

 

Q7: How can you negotiate with colleagues on budget requirements
and incorporate any agreed modifications, according to
organisational policy and procedures? Write your answer in 100-
150 words.
Satisfactory
response
Yes ☐ No ☐
Here is the negotiation process with colleagues on budget requirements
set objectives clearly in own mind)
determine what has to do if the negotiation, or a particular outcome, fails
determine needs, the needs of the other party, and the reasons behind them
list, rank, and value your issues
analyze the other party
conduct research and consult with colleagues and partners
rehearse the negotiation
write an agenda — discussion topics, participants, location, and schedule
Q8: Explain in brief, an approach to complete a final budget, in a
clear format and within designated timelines? Write your answer
Satisfactory
response

 

in 100-150 words. Yes ☐ No ☐
The bottom-up approach tends to be more effective as employees are more inclined to
accept the budget. Regardless of the approach used, the budget committee is
responsible for overseeing and approving the master budget. It begins by deciding
upon the financial goals according to which the budget will be made. Other important
activities in the budgeting process include things such as forecasting, monitoring,
controlling, and evaluating financial goals. The budgeting process is very crucial for
any business entity. budgeting estimates revenue plans expenditure and restricts any
spending that is not part of the plan. budgeting ensures that money is allocated to
those things that support the strategic objectives of the business. a well
communicated budget helps everyone understand the priorities of the business
Q9: How would you inform colleagues of final budget decisions and
applications, in line with reporting and financial management
responsibilities, within your relevant work area? Write your
answer in 100-150 words.
Satisfactory
response
Yes ☐ No ☐
1
Identify the employees who will receive the budget information. If employees on different
levels are involved, determine if certain employees, such as managers, should hear the
budget announcement first. Choose the date for each group of individuals to receive the
budgetary information.
2
Write an overview of the budget, highlighting the major changes from the previous budget.

 

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3
Incorporate a list of any action points the employees need to perform based on the budget
announcement
4
Compile a packet for each employee that includes the overview, action list, and budget itself.
If the information is different for various groups of employees, ensure that you mark each
packet so each person gets the correct information.
5
Send an email notification or memo based on your company’s typical form of communication
to let employees know the budget is prepared. Announce the date that the budget
information will be released.
6
Gather employees for a meeting to disperse the budget information.
Q10
:
How can regularly reviewing a budget, to assess actual
performance against estimated performance, assist in the
preparation of accurate financial reports? Write your answer in
50-100 words.
Satisfactory
response
Yes ☐ No ☐
Here are some steps to review the budget:
Take the time and think that need and double it.
Don’t Sweat the Small Stuff.
Decide Who Owns the Numbers.
Make Sure to Understand the Context.
Surprises in Review Means You Have Failed.

1. 2. 3. 4. 5.

Q11
:
Explain the term ‘financial commitments’ and reason to
incorporate these into budgets and budget reports. Write your
answer in 150-200 words.
Satisfactory
response
Yes ☐ No ☐
A financial commitment is a commitment to an expense at a future date. We may use
the term for either a major expense or an ordinary one. It is a snapshot of a
business’s finances on a given date. A financial commitment is a pledge to pay
something on a future date or over a specific period. Budgeting is the basis for all
business success. It helps with both planning and control of the finances of
the business. If there is no control over spending, planning is futile and if there is no
planning there are no business objectives to achieve. to ensure that the business can
fund its current commitments. A budget is an estimation of revenue and expenses over
a specified future period and is usually compiled and re-evaluated periodically

 

Q12
:
What are the four (4) steps to investigate and manage
significant budget deviations? Write your answer in 100-150
words.
Satisfactory
response
Yes ☐ No ☐
the four (4) steps to investigate and manage significant budget deviations are:
1 Calculate the difference between what we spent and what we budgeted to spend.
2 Investigate why there is a difference.
3 Put the information together and talk to management.
4 Put together a plan to get costs more in line with the budget.
Q13
:
Explain the importance of analysing the changes in the internal
and external environment and making adjustments to mitigate
any variation/deviation? Give two (2) examples for each. Write
your answer in 150-200 words.
Satisfactory
response
Yes ☐ No ☐
.
It is important to note that external and internal factors have a great impact on competitive
advantage. It is recommended to managers, evaluate these factors, to assess these two
environments. Managers should be sensitive toward the external environment which is so
dynamic, it extremely influences the decision making. When firms globalize, analyzing
the environment becomes more complex because they must examine the external
environment in each country in which they do business. Regulations, competitors,
technological development, and the economy may be different in each country and will affect
how firms do business.

Assessment Task 2 – Project
Project
Scenario:
You are a project manager for Melbourne Events, an event management company. You need
to organise a charity program to raise fund for the Royal Children’s Hospital. The event is
planned to take place in Swanston street, at Melbourne Town Hall, a historic landmark of the
city. The Royal Children’s Hospital wants a green-themed event with entertainment, music
and dance, along with a charity auction. The event is planned to be held on the first Saturday
in December, before Christmas and they hope to sell 350 tickets.
As a project manager, you need to organise food and beverages, along with a master of
ceremonies, entertainment and music for the night. The charity will source all items for the
auction. The program preparation should start from the first week of August.
The goal is to conduct a successful event and collect at least 25% of the profit from the
event and the auction, for charity.
As part of the planning process, you must prepare a series of budgets to help achieve these
goals.
Part A
As a project manager, analyze and prepare the budget information as requested below:
PR2.1. For the event, budgets should be prepared to achieve the goal. Mention the scope
and nature of selected budgets.
The program budget should be prepared to achieve the goal. It should
list income and
expense categories, detailed budgets, a list of staff, their compensation, and records or
estimates of their activities, and information about major expense items, such as facility
and program expenses. The nature of a budget is to arrange for how cash is to be spent. It is to
live inside your methods and to distribute assets accurately. A Budget is also known as a
financial plan predicts costs and earnings for a precise timeframe.

PR2.2. To prepare the budget, you are required to gather the necessary information. Outline
six (6) sources of data and the information these data sources will provide to meet
the organization’s requirements. Fill in the template below with the information
gathered.

Data /
Information
Data Sources
Information about
the food and
beverages
Information obtained from guests, directors, and participants of the charity
program
Information about
charity
Information can get from charity organizations
Fund
requirements
From financial manager and fund supervisor
Information about
music, dance, and
art
From the event organizer and coordinator
Information about
decoration and
placement of
program
From the event organizer and coordinator

PR2.3. Analyze three (3) internal and three (3) external factors that can impact the budget.
List them and provide a brief description of the positive/negative impact of each. Use
the template provided below.

Factor Impact

 

Company culture Company culture provides both positive and negative
impacts on the budget. Some of the corporate cultures
are favorable to budget if it fulfills budget requirements
and vice-versa
Staff’s emotions and personality
finance
The budget is impacted both positively and negatively by
the staff’s emotions and personality. if the budget move
according to employee emotions and personality, the
budget nature becomes favorable.
whether the finance is enough for the charity program or
not. If the fund is enough then it impacts positively on
the budget
Technological factors Technical factors affect a lot in the budgeting system
which provides both positive and negative impacts on the
budget. If the company uses modern technical factors,
the budget system can make a budget as per the
planning and there is less chance of extra expenses.
Political condition The political condition can greatly impact the budget of
the company. The company made a budget based on one
political system and if suddenly the political party
changes then, it will negatively impact the budget.
Competitive environment The competitive environment also impacts n budget
system of the charity program. If there is a highly
competitive environment, then there is very little chance
of raising funds for the program or vice-versa.

Part B:
Conduct a discussion session with three (3) stakeholders (Finance manager, Food and
beverage manager, event committee chair) to obtain input on the possible budget items.
Instructor and two (2) students will act as the stakeholders for the meeting. If there are
insufficient student numbers, the trainer will assume multiple roles.
PR2.4. Share the information on the type of budget, external and internal factors affecting
the budget and obtain input on the ideas and/or any concerns/missing areas to cover
in the budget.
Gather the following input from the stakeholders:
Finance manager: Key performance indicators to be used in the budget to
measure its performance.
Food and beverage manager: How to account for significant price movements
for certain commodities, if any.
Event committee chair: Objectives to be achieved.
Use the following template to gather the input:

Suggestion / Input on budget planning Input by
We have to use our funds wisely and spend more on decoration, food items,
and dance, music, and arts so that more and more funds should be raised.
the more funds should be raised if the audience gets attached to the
programs if they like the theme of the programs if they enjoy dance, music
arts
Finance manager
The food and beverages should be according to the participants, directors,
and audience. The food and beverages should be made healthy without
using unwanted taste and food items so that audience can have good taste.
the food items have to purchase from the wholesaler so that we can get
them at minimal cost
Food and beverage
manager
The Event Chairperson provides the leadership for the entire event planning
process. As the leader, the Chairperson will recruit and motivate committee
members and event volunteers and act as the spokesperson for the entire
group.
Event committee chair

Part C
For this part, use MS Excel for calculating and preparing the budget.
Assume you have conducted research on the available vendors/suppliers and have received
the following information:

Expense item Quote ($) Comments
Venue 2,000.00 Main hall and stage
Stationery items / Postages 225.00
Communication 250.00
Event staff uniform 650.00 T-shirt for service staff in the event.
Hire audio-visual equipment 3,500.00 Projector, microphones, sound systems,
screens
Floral arrangements 4,000.00 35 x table centres, 8 x large stands
Stage and lighting hire 5,500.00 For stage and dance floor with colourful
spotlights
Food and service equipment
lease
1,570.00 Food preparation and service equipment
Master of ceremonies 900.00 6 hours including auction
Consultant fees 4,000.00

PR2.5. Prepare linen hire cost for the event
The financial information from suppliers on the cost of linen for the event is provided below.
Prepare the linen hire cost based on the following information.

Linen type Price per item
($)
Quantity Cost
($)
Round tablecloths 8.50 35 297.5
Trestle tablecloths 8.50 10 85
Table overlays 5.50 35 192.5
Napkins 0.70 350 245
Chair covers 3.00 350 1050
Total linen hire costs 1870

PR2.6. Prepare an expense budget
Based on the quotes provided by suppliers and your calculations, prepare an expense budget
for the event.

Expense budget
Expense item ($)
Venue 2,000.00
Stationery items / Postages 225.00
Communication 250.00
Event staff uniform 650.00
Hire audio-visual equipment 3,500.00
Floral arrangements 4,000.00
Stage and lighting hire 5,500.00
Food and service equipment lease 1,570.00
Master of ceremonies 900.00
Consultant fees 4,000.00
Linen hire 1870
Total expenses 24465

PR2.7. Prepare a wage budget for the event
For the event, all human resources required are managed by an HR firm. The financial
information from the company on wages is provided below.
Besides the listed wages, an extra $10 per hour penalty will need to be paid, for anyone that
worked more than 8 hours in a day, after the allotted time.
The staff are required for two days.
Friday – for room set-up and food preparation
Saturday – for the day of the event.
The required resources are listed in the table below:

Job role No. of
staf
Rostered hours per
person
Pay rate per hour
Friday Saturday Weekday Weekend

 

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($)
Cook 2 8 8 30.00 35.00
Kitchen assistant 2 6 8 22.00 25.00
Kitchen hand 2 8 18.00 20.00
Waiters 5 8 8 20.00 25.00
Waiters 10 8 20.00 25.00
Bar attendant 2 4 6 20.00 25.00
Security 1 1 3 pm to
11 pm
3 pm to 11
pm
35.00 45.00
Security 2 1 11 am to
7 pm
6 pm to 2
am
35.00 45.00
Security 3 1 7 am to 3
pm
35.00 45.00
Supervisor 2 10 10 40.00 50.00

Based on the information provided, prepare a wage budget using the template below:

Job role Wages Total wages
Friday ($) Saturday ($) $($)
Cook 8.571 8.571 17.142
Kitchen assistant 6.285 6.285 12.450
Kitchen hand 5.142 5.142
Waiters 14.285 14.285 28.57
Waiters 28.571 28.571 57.142
Bar attendant 5.7142 6.780 12.893
Security 1 5 5 10
Security 2 5 5 10
Security 3 5 5 10
Supervisor 12.450 12.450 25.891
Total event wages 189.23

PR2.8. Prepare food and beverages cost
For the food and beverages, assume the following:
Ticket prices will include a four-course meal with wine, beer, soft drinks and juices.
Every meal caters for two (2) customers, except for the tapas appetiser, which is a
shared platter for each table.
An extra 50 meal sets are required for staff and entertainers.
Beverages include a variety of red and white wines to match each course, bottled
light and heavy beer, post-mix soft drinks and orange juice.
Standard recipes have been costed for each course, and an individual cost per serve
determined.
Calculate the food costs, including food cost per head, assuming 350 customers bought the
tickets and attended the charity ball.

Menu item Cost x 1
serve
($)
No. serves required Food cost
($)
Tapas platter 6.75 2 per table x 35
tables
472.5
Baby beetroot with aged balsamic
salad
3.84 175 672
Pan fried potato gnocchi, crispy
bacon pasta
2.60 175 455
Portuguese marinated chicken 5.27 200 1054
Mustard and macadamia rack of
lamb
6.22 200 1244
Sticky date chocolate pudding 2.00 175 350
Baileys tiramisu 1.95 175 341.25
Tea/coffee 0.25 350 87.5
Petits fours 0.35 350 122.5
Total food costs 4798.75
Food cost per head 13.7107

Calculate the beverage costs, including beverage cost per head.

Beverage item Cost per item per
bottle/serve ($)
Forecasted
requirements
Beverage cost
($)
Sparkling wine 14.52 60 871.2
Sauvignon Blanc 15.07 55 828.85
Chardonnay 14.21 60 852.6
Botrytis Riesling 22.53 45 1013.85
Merlot 8.80 50 440
Shiraz 12.45 45 5645.25
Cabernet Sauvignon 15.01 55 825.55
Light beer (750 ml) 3.40 50 170
Heavy beer (750 ml) 3.99 30 119.7
Soft drink 0.20 400 400.2
Juice 0.31 225 69.75
Total beverage costs 11236.95
Beverage cost per head 32.1055

PR2.9. Prepare draft event budgets
Based on the information provided below, prepare the event budget
The event committee has asked you to prepare two alternative revenue statement budgets
based on ticket prices of $100.00 and $200.00. They wish to determine the most feasible and
profitable alternative for their organisation.
From previous experience in projects, it has been identified that a specific percentage of
ticket sales revenue is spent on additional expenses, such as advertising, printing,
decorating the venue and entertainment for the event. These expenses need to be included
in the revenue statement budgets.

Additional expenses % of revenue
Advertising 1%
Printing 0.25%
Room decoration 3%
Entertainment 5%

 

Total 9.25%

Calculate the revenue for both ticket prices

No. of tickets Ticket price =
$100.00
Ticket price = $200.00
350 109.25 218.5

Prepare alternative revenue statement budgets using the information you have accumulated
so far.

Alternative
1
Alternative
2
% of sales
350 tix x
$100
350 tix x
$200
Sales $ % $ %
Revenue from ticket
sales
109.25 9.25 218.5 9.25
Cost of goods sold 55.60 3 67 5
Food cost 13.7103
Beverage cost 32.5670
Total cost of goods 211.1273
Gross profit 112
Expenses
Labour costs 1000
Venue 2,000.00
Stationery items /
Postages
225.00
Communication 250.00
Event staff uniform 650.00
3,500.00

% of
sales
Hire audio-visual
equipment

Floral arrangements 4,000.00
Stage and lighting hire 5,500.00
Food and service
equipment lease
1,570.00
Master of ceremonies 900.00
Consultant fees 4,000.00
Linen hire 1870
Advertising 2000
Printing 1200
Room decor 4000
Entertainment 3000
Total expenses 35665
Profit/loss 5013

PR2.10. Identify the breakeven ticket price to achieve a 25% profit.
125
PR2.11. Calculate the revenue for the breakeven ticket price.

No. of tickets sold Ticket price = 125
350 43750

Prepare alternative revenue statement budgets using the information you have accumulated
so far.

Amount ($) % of sales
Sales 105000 9
Revenue from ticket
sales
43750
Cost of goods sold 211.1237

 

Food cost 4550.563
Beverage cost 11200.567
Total cost of goods 15962.3927
Gross profit 89037.6072
Expenses 24465
Labour costs 1000
Venue 2,000.00
Stationery items /
Postages
225.00
Communication 250.00
Event staff uniform 650.00
Hire audio-visual
equipment
3,500.00
Floral arrangements 4,000.00
Stage and lighting hire 5,500.00
Food and service
equipment lease
1,570.00
Master of ceremonies 900.00
Consultant fees 4,000.00
Linen hire 1870
Advertising 2000
Printing 1200
Room decor 4000
Entertainment 3000
Total expenses 35665
Profit/loss 11200

Part D
PR2.12. Circulate the draft budget to the event committee for input.
Prepare an email with the detailed draft budget, including two alternatives and breakeven
price, seeking input from the relevant stakeholders (those who gave input in 2.4). The email
should be 150-200 words long.
Email addresses will be provided by the trainer/assessor.
Answer
To:
[email protected]
From:[email protected]
Date: 20xx
Subject: To circulate the draft budget to the event committee for input
Respected sirmadam
Good morning everyone. I had made a draft budget for the charity program by including all
the costs and expenses that will be required for the program. I had made a list of the
expenses and revenue by expected cost so that it will easier for us to determine the required
fund for the event. I had made two alternatives to the budget by including all the revenue
generated sources and expenses of the charity program. The break-even price is $125 by
including a 25% profit on ticket price. If all the expenses and revenue generated sources are
examined properly, the fund will be collected easily and the event would be successful. I
request you to go through the budget and provide feedback where necessary.
Thank you
Student name

Assessment Task 3 – Project
Project
Part A
You are a project manager for Melbourne Events, an event management company and
looking after the organisation of a charity program to raise fund for the Royal Children’s
Hospital.
Based on the case provided under UAT 2, you have already shared the draft event budget
with the key stakeholders and are now planning to negotiate with them to finalise the
agreement.
The negotiation meeting should be conducted with two (2) event committee members.
Instructor and one (1) student will act as the stakeholders for the meeting. If there are
insufficient student numbers, the instructor will assume multiple roles for this exercise.
PR3.1. Based on the draft budget shared earlier, discuss and negotiate on any
changes that need to be incorporated in the budget.
The output of the negotiation should result in potential methods to reduce expenses and
maximize profits.
During the negotiation, you must agree on some of the inputs given from the
trainer/assessor and disagree on some you think will not result in the potential methods to
reduce expenses and maximize profits.
This will assess your knowledge of key concepts to budgeting and your oral
communication skills. You must document three (3) items that you have negotiated.

S no.1 Negotiated item
Negotiation
with an
event
manager
The event manager has to deal with the budget expenses and revenue sources. The
event manager has to find ways to minimize expenses on dance, music, and
entertainment so that more and more funds will be raised for the charity program.
Food and
service
equipment
lease
The food and beverage coordinator has to deal with all the food and beverages items.
Heshe has to take care that required food should be cooked and food does not get
wasted.

 

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Floral
arrangemen
t and stage
decoration
The floran arrangement and stage decoration should be unique and as per the theme
of the event. the event coordinator has to make sure that stage decoration should
depict the theme of the program and should look attractive. The cost should be more
spend on it than the budget amount.

Part B
For this part, use MS Excel for calculation and preparing the final budget.
Assume, based on the negotiation and interaction with the event committee, the following
decisions are made:
Ticket prices are confirmed as $200.00 per person.
Increase advertising allowance to 2% and printing to 0.5%.
Increase room decoration expenses to $2,500.
Reduce lighting and audiovisual expenses by $1,000 each.
Remove chair covers and overlays for the event.
Confirmation from major liquor supplier on free supplies of wine for the event in
return for acknowledgement on printed materials like menus and posters.
Confirmation from the catering equipment supplier to provide free supply in return of
same acknowledgements.

PR3.2.
timely format.
Prepare the final budget to incorporate the agreed changes in a clear and

The updated linen expense budget:

Linen type Price per item
($)
Quantity Cost
($)
Round tablecloths 8.50 35 297.5
Trestle tablecloths 8.50 10 85
Napkins 0.70 350 245
Total linen hire costs 627.5

Updated expense budget:

Expense budget
Expense item ($)
Venue 2,000.00
Stationery items / Postages 225.00
Communication 250.00

 

Event staff uniform 650.00
Hire audio-visual equipment 3,500.00
Floral arrangements 4,000.00
Stage and lighting hire 5,500.00
Food and service equipment lease 1,570.00
Master of ceremonies 900.00
Consultant fees 4,000.00
Linen hire 1870
Total expenses 24465

Updated beverages cost:

Beverage item Cost per item per
bottle/serve ($)
Forecasted
requirement
s
Beverage cost
($)
Light beer (750 ml) 3.40 50 170
Heavy beer (750 ml) 3.99 30 119.7
Soft drink 0.20 400 80
Juice 0.31 225 69.75
Total beverage costs 439.45
Beverage cost per head 13.5634

PR3.3. Updated event budgets
Based on the information provided above and changes in additional expenses, update the
event budget.

Additional expenses % of revenue / amount
Advertising 2%
Printing 0.5%
Room decoration 2500
Entertainment 2000

Revenue from the ticket sale

No. of tickets Ticket price = 200
350 70000

Updated Event budget:

$ % of Sales
Sales 105000 9
Cost of goods sold 211.1245
The total cost of goods 15962.3927
Gross profit 89037.6072
Expenses
Venue 2,000.00
Stationery items / Postages 225.00
Communication 250.00
Event staff uniform 650.00
Hire audio-visual equipment 3,500.00
Floral arrangements 4,000.00
Stage and lighting hire 5,500.00
Food and service equipment
lease
1,570.00
Master of ceremonies 900.00
Consultant fees 4,000.00
Linen hire 1870

 

Total expenses 24465
Profit/loss 80535

Part C
PR3.4.
Email the updated budget to the event committee members, finance manager,
Food & Beverage manager and colleagues, focusing on relevant work areas, including
reporting and financial management. (Refer to PR2.4 for email addresses/ask your trainer or
assessor)
Answer
To:
[email protected]
From: [email protected]
Date: 20xx
Subject: To circulate updated budget
Respected: sir/madam
Good morning everyone. I would like to inform you all about the updated budget of the
charity program. I request you to go through the updated budget and provide us with some
feedback where necessary. i had made all the budget systems for the charity program.
Thank you
Student name
Part D
For this part, use MS Excel features as accounting software.
Assume that the budget has been approved, and it is now the middle of November. The
entertainment group has confirmed that they will donate the remaining $2000 to charity. The
current expenses and fund collection by ticket sale are as provided below:
Please see the below expense report source:

Expense Amount $ Comments
September
Consultant fees 2,000.00 1st Instalment
Stage and Lighting hire 2,500.00 Booked
Hire Audio-visual equipment 1,500.00 Booked

 

Room decorations 500.00 Booked
Advertising 500.00
Printing 95.00
Venue hire 1,000.00 Booked
Labour 2,000.00 Booked
October
Advertising 1,000.00
Printing 450.00
Entertainment 1,500.00 Booked
November
Advertising 500.00
Postage/stationery 301.50
Communicatio`n 300.00
Revenue: ticket sales
October 34,000.00 170 tickets sold
November 30,000.00 150 tickets sold

PR3.5. Analyse the recent income and expenditure information and review the budget
to assess the performance against the estimated budget. Analyse the changes in the
environment and make the necessary adjustments.

Budgeted Septembe
r
October Novembe
r
Variance
$ $ $ $ $ %
Income 64000
Expenses
September
Consultant fees 2,000.00

 

Stage and Lighting
hire
2,500.00
Hire Audio-visual
equipment
1,500.00
Room decorations 500.00
Advertising 500.00
Printing 95.00
Venue hire 1,000.00
Labour 2,000.00
October
Advertising 1,000.00
Printing 450.00
Entertainment 1,500.00
November
Advertising 500.00
Postage/stationery 301.50
CommunicatiON 300.00
Total expenses 14146.5

PR3.6. Identify the areas of deviation, investigate them and take appropriate actions.

Deviation Cause Action
Deviation in advertisement It causes because
advertisement plays a vital role
in promoting charity shows and
raising funds
The more and more fund should be
collected by advertisement
Deviation in stage and
floral arrangement
It causes as to make program
successful there needs to spend
a lot in decoration to attract an
audience
The event organizer has to spend a
huge amount of money on decoration
and adopt the unique way of
designing

Part E
For this part, use MS Excel features as accounting software.
At the end of November, all the tickets were sold out. The enthusiasts were checking with the
event committee if there are any more tickets, but due to limited seats, the booking system
was closed.
On the 1
st Saturday of December, the charity program was conducted with huge success.
At the end of the program, the financial status is as below:

Expense Amount
$
Comments
September
Consultant fees 2,000.00 1st Instalment
Stage and Lighting hire 2,500.00 Booked
Hire Audio-visual equipment 1,500.00 Booked
Room decorations 500.00 Booked
Advertising 500.00
Printing 95.00
Venue hire 1,000.00 Booked
Labour 2,000.00 Booked
October
Advertising 1,000.00
Printing 450.00
Entertainment 1,500.00 Booked
November
Advertising 700.00
Postage/stationery 401.50
Communication 500.00
Room decorations 2,000.00 Paid on full before the event.
December
Food cost 5,200.00 One of the food raw material was damaged
during transportation, causing additional

 

cost to cover it.
Beverage cost 439.45 Paid on delivery
Labour costs 6,824.00
Venue 1,000.00 Paid on the day of the event
Stationery items / Postages 200.00
Communication 150.00
Event staff uniform 650.00
Hire audio-visual equipment 1,000.00 Paid on the day of the event
Floral arrangements 4,000.00
Stage and lighting hire 2,000.00
Master of ceremonies 900.00 Paid on the day of the event
Linen hire 627.50
Revenue: ticket sales
October 34,000.00 170 tickets sold
November 36,000.00 180 tickets sold (Sold out)

PR3.7. Analyse the change in the internal and external environment and with
necessary adjustments, prepare the cash flow statement.

Cash flow report as at 15 December
September
$
October
$
November
$
December
$
Opening bank balance 8095 2950 3601 22990
Cash in: Sales
34000 36000
Cash-out: Expenses
Consultant fees 2,000.00
Stage and Lighting hire 2,500.00
1,500.00
Room decorations 500.00
Advertising 500.00
Printing 95.00
Venue hire 1,000.00
Labour 2,000.00
Advertising 1,000.00
Printing 450.00
Entertainment 1,500.00
Advertising 700.00
Postage/stationery 401.50
Communication 500.00
Room decorations 2,000.00
EXPENSES OF
DECEMBER
22990.91

Hire Audio-visual
equipment

Total cash outflow 343000
Closing bank balance 254000
Outstanding
expenses
89000
Outstanding income 134000
Anticipated final bank balance 197654

PR3.8. Prepare a profit and loss report. Identify the deviation and budget
performance for future reference during budget preparation.

Profit and loss report Budget Actual Variance
$ $ $ %
Sales 70000 105000 5.876
Cost of goods sold 2567.789 2111.1245 1.65
The total cost of goods 20087.345 15962.3927 4.78
Gross profit 10023.234 89037.6072 1.43
Expenses 30023 24472 5

 

Total expenses 50836 60087
Profit/loss 20813 4560

 

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