Trainers Assessment Resource FNSACC XXXXXXXXXXVersion 2 April XXXXXXXXXXPage 1 of 23 ASSESSMENT 1 –REPORT WRITING STUDENT INFORMATION This information is to be handed to each student to outline the...

Please write detailed answers and answer all the questions


Trainers Assessment Resource FNSACC517 Version 2 April 2018 Page 1 of 23 ASSESSMENT 1 –REPORT WRITING STUDENT INFORMATION This information is to be handed to each student to outline the assessment requirements For the assessment, students must write a detailed report on how they would undertake the task of gathering, record and analyse data for management budgetary use. Students may choose a company of their choice for this report in consultation with their instructor, or may alternatively use the company model detailed below (MJ Holdings Inc) Students must answer the following in their report:  What data is necessary for the purpose of creating cost and operating budgets? - Be specific, i.e. cash flow reports for the last 3 months, P&L statements for the last 12 months etc  What sort of a system would you set up to retrieve the necessary data? - How would you ensure the appropriate departments staff are aware of what is required of them? - How would you go about gathering the data?  How would you code and classify the data appropriately for management use?  How would you store the data? - Briefly discuss how you would ensure security of the financial data - Also discuss how you would ensure the financial data is protected from being erased or lost.  What steps should you undertake to ensure the data is accurate and reliable?  Give a detailed explanation on how you adequately ensure your interpretation of the data is reliable and consistent with management performance strategies. - What constitutes valid analysis? - What auditing requirements would be involved in this process? - What steps would you take to ensure your reasoning is logical, transparent and supported by the data? This assignment should be submitted in the form of a detailed written report. Assessment Summary You are to submit the following evidence / perform the following tasks  Develop and submit your written report as outlined above Business Example (MJ Holdings Inc) MJ Holdings Inc. is a Medical Supplies company in East Melbourne specialising in orthopaedic instruments and disposable items. The company has 67 employees employed in their customer service, accounts, managements, sales, marketing and costing departments. Their annual turnover is approximately $2.5M with profits of $970,000 recorded last year. Management requires operating and cost data for budgetary decision making and has asked you to gather record and analyse the data for their use. This assessment is due on: __________________________________ ASSESSMENT 2 – PROJECT STUDENT INFORMATION FNSACC517 Version 2 April 2018 Page 2 of 23 This information is to be handed to each student to outline the assessment requirements For this assessment, students are to utilise the data in the Appendices regarding Ed’s Whitegoods. The instructor can role-play the part of Edward Tan, the proprietor and will give any additional information required, including company policies and procedures, milestones etc. Students are to undertake the following:  List all personnel you would consult with in order to gain adequate advice prior to commencing your reports.  Consult with your instructor to determine management requirements  Prepare a 1 year budget & projected financial statement including: - Sales forecast, taking into account additional information in Appendix 5 - Estimated expenses / inventory costs - Estimated profits  Ensure report layout and format comply with management information requirements, are clear and error-free Note: Students must use appropriate spreadsheet or accounting software to undertake this task. Students must ensure that estimates of future cash flow, costs and revenues are realistic in context of the available information at the time of creating the budget. Changes in circumstances should be anticipated as best as possible with particular emphasis on financial risks and creating protection strategies in accordance with organisational procedures. Any liaison with the proprietor of the business to determine milestones, policies, goals etc. should be carried out with your instructor, who will role play the relevant parts. Assessment Summary You are to submit the following evidence / perform the following tasks  Develop and submit your annual budget as outlined above This assessment is due on: __________________________________ FNSACC517 Version 2 April 2018 Page 3 of 23 ASSESSMENT 3 –PROJECT STUDENT INFORMATION This information is to be handed to each student to outline the assessment requirements Students are required to compare their budgeted figures against actual figures located below: Ed’s Whitegoods 1 year result: Total Sales: $1,623,000 Total Purchases: $701,400 Total Expenses: $402,000 Students are to undertake the following:  Prepare a variance analysis between budgeted and actual figures  Ensure report demonstrates major differences  What was the discrepancy? - Is the discrepancy a positive or negative one? - Locate the area and give at least 5 reasons why the discrepancy may have occurred  Utilise the data provided to determine the effectiveness of the cost budgeting techniques used  Lastly, students should give recommendations as to how their variance may be corrected for future budgets for the business. The variance report should be submitted along with a written report detailing the student’s answers to the above questions. Assessment Summary You are to develop and submit the following:  revised budget  budget assessment report  feasibility report This assessment is due on: __________________________________ FNSACC517 Version 2 April 2018 Page 4 of 23 ASSESSMENT 4 – RESEARCH & QUESTIONING Submission details Students will use their online study time to prepare for answers to the following questions and submit 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 student. · 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 Trainer/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: Assessment Questions: 1 List and describe 3 major cost elements of any product 2 Provide 5 examples of committed fixed costs FNSACC517 Version 2 April 2018 Page 5 of 23 3 Provide 5 examples of discretionary fixed costs 4 Describe how you measure cost behaviour as a function of appropriate cost drivers? 5 Provide 5 examples of cost drivers 6 Describe the following methods of measuring cost functions Engineering Analysis Account Analysis High-Low Method Visual Fit Method FNSACC517 Version 2 April 2018 Page 6 of 23 7 Calculate the variable rate using the High Low method of measuring cost function. High capacity High capacity January: 55,000 machine hours Cost of electricity $80,450 Low capacity September: 30,000 machine hours Cost of electricity: $64,200 8 Continuing from the previous question, what is the fixed cost? 9 What is the difference between cash and accrual accounting? 10 What is the difference between single and double entry accounting? 11 Describe the key management information requirements required when determining the structure and format of budgets and reports 12 What is meant by "standard costing and variance analysis"? FNSACC517 Version 2 April 2018 Page 7 of 23 13 List and explain 5 different measures of variance to be considered when developing an annual budget Variance Type Variance Explanation 14 Provide 5 different reasons (each) for a favourable market price variance, and adverse material price variance. 15 What are the key purposes / objectives of creating and using an annual budget? 16 What are the key purposes / objectives of forecasts? 17 What is the importance of milestones and KPI's when budgeting / forecasting? FNSACC517 Version 2 April 2018 Page 8 of 23 18 What information is needed in order to create an accurate financial forecast for a business? 19 Outline 9 different expenditure and revenue items that are relevant to budgeting and forecasting 20 Describe the steps that are in most company budgeting procedures 21 What is the difference between job costing and process costing? 22 Explain 3 key processes for recording and securely storing data FNSACC517 Version 2 April 2018 Page 9 of 23 Appendix 1 – Big Ed’s Whitegoods Ltd Edward Tan owns a medium sized whitegoods retail store. He provides you with the following information which is current as of 1 October 2012. All sales and purchasing figures are inclusive of GST. Assets: Cash (Bank) $245,000 Computer equipment $16,400 Delivery Van $26,000 Phones $2,300 Office Equipment $4,500 Debtors $13,580 Stock $117,303 Expenses Phone Service / Calls $780 Electricity $1590 Gas $600 Water $550 Insurance $1300 Payroll $465,000 Cleaning $850 Finance Costs $1650 Advertising $560 Rent $25,000 Petrol $560 Accountants Fees