Need to be done 23 October
Trainers Assessment Resource FNSACC412 Version 2.1 April 2018 Page 1 of 13 ASSESSMENT 1 – PROJECT STUDENT INFORMATION This information is to be handed to each student to outline the assessment requirements. Students are required to create a 12 month operating budget for a business of your choice (instructor may provide several business models to choose from or utilise data from Appendix 1). The task will encompass disseminating a business’ previous year’s statements with projected values for the coming 12 month period. Students will be required to include a breakdown of the 12 month budget into seasonal periods in accordance with operating trends. Your task will also include: Consulting with stakeholders of the business to determine mutual goals and ensure ongoing cooperation (this can be within the context of a simulated learning environment) Clearly define and disseminate information about revenue and outgoings including, but not limited to: - Projected sales and revenue - Payroll - Business Expenses - P/L Statements - Cash flow of the business - Relevant business taxes including GST and BAS Present your data in a format that is easily understood and appropriate to the budget Ensure that all your reports conform to relevant legislation and taxation requirements Your operating budget should be broken up into detailed budgets relevant to your chosen business, such as: Sales/Revenue Budget (Forecast) Income Statement Budget Cash Budget Purchases and Production Budget Balance Sheet Budget Operating Expenses Budget For any further information, you are to confer with your client (who will be role-played by your assessor). This includes identifying the structure and purpose of the business, along with any additional assumptions or financial data required Assessment Summary You are to submit the following evidence / perform the following tasks Submit your operating budget as outlined above This assessment is due on: __________________________________ FNSACC412 Version 2.1 April 2018 Page 2 of 13 ASSESSMENT 2: RESEARCH AND QUESTIONING Submission details Students will use their online study time to prepare for answers to the following questions and submit both hardcopies and 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 stu dent. · 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: Questions 1 What is the difference between cash and accrual accounting? 2 What is the difference between single and double entry accounting? FNSACC412 Version 2.1 April 2018 Page 3 of 13 3 Pedro's Pasta purchases a car for $8,800 using a loan from the bank suppler. Referring to double entry accounting, what are the two effects of action? Show how you would record the transaction in the ledger. 4 What are performance indicators? Provide 2 different PI’s that can be used for budgets and financial plans. 5 What is regression analysis? What benefits are there to this technique? 6 List and describe the four different ratio types that make up a Financial Ration Analysis Classifying Ratio Description FNSACC412 Version 2.1 April 2018 Page 4 of 13 7 Outline the calculation method used to determine the following profitability returns ratios. Operating return on assets Return on assets Return on total capital 8 What is meant by measures of variance? Explain how it is calculated 9 List and explain 5 different measures of variance to be considered when developing an annual budget Variance Type Variance Explanation FNSACC412 Version 2.1 April 2018 Page 5 of 13 10 Provide 5 different reasons (each) for an favourable market price variance, and adverse material price variance. 11 Describe and compare the following forecasting techniques Time series forecast The Delphi Method Executive Opinions Forecasting FNSACC412 Version 2.1 April 2018 Page 6 of 13 12 List 3 common features and assumptions that are inherent in forecasting, regardless of the method used? 13 Describe the steps that are in most company budgeting procedures 14 What is performance reporting? Why is this an important part of the budgeting process? 15 The master budget requires the preparation of many detailed budgets – in what order should these budgets be prepared? a) Purchase, Sales, Cash, Balance Sheet, Income Statement b) Sales, Purchase, Income Statement, Cash, Balance Sheet c) Balance Sheet, Income Statement, Sales, Purchase, Cash d) Cash, Income Statement, Purchase, Sales, Balance Sheet e) Cash, Purchase, Income Statement, Sales, Balance Sheet 16 What does it mean to have a favourable variance? FNSACC412 Version 2.1 April 2018 Page 7 of 13 17 What is the balanced scorecard, and what 4 key perspectives are integrated in this? 18 Tom Jnr. Ltd has budgeted sales and production of the next quarter as follows: July Sales in Units: 30,000 Production in Units: 31,800 August Sales in Units: 36,000 Production in Units: 37,800 September Sales in Units: ? Production in Units: 42,600 October Sales in Units: 48,000 Production in Units: - Calculate the budgeted sales in units for September FNSACC412 Version 2.1 April 2018 Page 8 of 13 a) 40,000 b) 42,000 c) 42,800 d) 44,200 e) 45,000 19 McKabe & Co. collects accounts receivable as follows: - 30 percent in the month of sale - 60 percent in the next month - 8 percent in the second month after sale - 2 percent is uncollectible Budgeted sales (all on credit) for the next 4 months are as follows: February: $32,000 March: $44,000 April: $38,000 May:$46,000 What are the budgeted collections in May? a) $40,120 b) $41,170 c) $42,430 d) $42,340 e) $43,100 20 Define the following Budgeting Terms: Zero-based budgeting Top-Down Budgeting FNSACC412 Version 2.1 April 2018 Page 9 of 13 Rolling Budget Fixed Costs Activity-Based Costing 21 Give an example of when a budget will need to be changed in response to changing operational requirements. 22 It is not always appropriate to base sales forecasts on current sales trends. State 3 examples of factors besides overall demand for your product which may impact on sales in the future. 23 What is a sensitivity analysis? Discuss how this can impact the business budget FNSACC412 Version 2.1 April 2018 Page 10 of 13 Appendix 1 TTMT Limited. Cash receipts journals date Particulars folio rec. no. Gst adj. $ disc exp. $ debtors $ cash sales $ GST payable $ Sundries $ Bank $ 1/06/2016 Sales and GST Payable CRR 1400.00 140.00 1540.00 4/06/2016 Sales and GST Payable CRR 1000.00 100.00 1100.00 6/06/2016 Commission and GST Payable 201 120.00 1200.00 1320.00 7/06/2016 K Allen 202 1.00 10.00 206.00 195.00 9/06/2016 Sales and GST Payable CRR 1600.00 160.00 1760.00 14/06/2016 L Harris 203 2.00 20.00 497.00 475.00 17/06/2016 Interest revenue 204 60.00 60.00 19/06/2016 Sales and GST Payable CRR 1800.00 180.00 1980.00 22/06/2016 P Adams 205 0.60 6.00 286.60 280.00 Sales and GST Payable CRR 1000.00 100.00 1100.00 29/06/2016 A Jones 206 0.80 8.00 418.80 410.00 30/06/2016 Monthly totals 4.40 44.00 1408.40 6800.00 800.00 1260.00 10220.00 Cash payments journal date Particulars folio chq no. ITC adj. $ disc rec'd $ creditors $ purchases $ ITC $ Wages $ Sundries $ Bank $ 2/06/2016 Electricity 422 625.00 625.00 4/06/2016 Purchases and ITC 423 835.00 83.50 918.50 8/06/2016