Knowledge Assessment (Written Tasks)
1. When you are preparing a budget where could you gather information and data from?
2. How could you estimate parameters for your budget?
3. What are the four stages involved in developing a budget?
4. List and describe the 4 most common budgeting approaches.
5. You have discussed with the human resource manager the new budget. Why is it now important that you incorporate their suggestions and make the modifications to the budget promptly?
6. What types of resources could be allocated in a budget?
7. To ensure effective monitoring and reporting of budgets what do you need to do?
8. What are the key processes to effectively manage approved budgets?
9. You will need to prepare financial reports for management. What do reports answer?
10. Who would you provide budget and financial reports to?
Task 1 - Budget Development and Management
From the following information prepare a cash budget for The Bowman Holiday Village for the following year.
Sales
The following information has been supplied regarding projected sales for the next twelve months and actual sales for the last quarter of last year.
|
Estimated Sales
|
Cash Sales $
|
Credit Sales $
|
|
January
|
1,000
|
12,000
|
|
February
|
1,200
|
14,000
|
|
March
|
1,100
|
13,000
|
|
April
|
1,200
|
14,000
|
|
May
|
1,300
|
15,000
|
|
June
|
1,350
|
15,500
|
|
July
|
1,350
|
15,500
|
|
August
|
1,400
|
16,000
|
|
September
|
1,500
|
17,000
|
|
October
|
1,400
|
16,000
|
|
November
|
1,550
|
15,500
|
|
December
|
1,550
|
17,500
|
|
Actual Sales - Previous Quarter
|
|
|
|
October
|
900 |
11,000
|
|
November
|
900 |
11,500
|
|
December
|
950 |
11,900
|
Past performance has indicated the following payments trend:
- 55% of debtors pay in the first month after purchase
- 30% of debtors pay in the second month
- 15% of debtors pay in the third month.
Purchases
Estimated purchases and actual purchases for the month of December are:
| December |
5,500 |
|
| January |
5,800 |
|
| February |
6,000 |
|
| March |
|
6,000 |
| April |
6,200 |
|
| May |
6,200 |
|
| June |
|
6,400 |
| July |
6,400 |
|
| August |
6,500 |
|
| September |
|
7,000 |
| October |
6,900 |
|
| November |
6,900 |
|
| December |
7,200 |
|
Payments for all purchases are made one month after purchase.
Other Expenses:
- Wages $3,200 per month and other expenses $1,000 per month. These must be paid in the month of purchase.
- New equipment is being purchased which will necessitate 2 payments of $2,000 in May and June.
- Company tax of $700 is paid in quarterly instalments.
- The company had an overdraft of $1,200 on 1 January.
Task 2 - Budget Development and Management
Your organisation is planning to tender for the following project:
ATM ID:
PRI-00003635
Agency:
Department of Industry, Innovation and Science
Category:
80100000 - Management advisory services
Close Date & Time:
27-Sep-20XX 3:00 pm (ACT Local Time)
Publish Date:
26-Aug-20XX
Location:
ACT, NSW, VIC, SA, WA, QLD, NT, TAS
Canberra, Sydney, Melbourne, Adelaide, Perth, Brisbane, Darwin, Hobart
ATM Type:
Request for Tender
Multi Agency Access:
No
Panel Arrangement:
No
Description:
The ABCB is seeking the services of an organisation to develop a targeted campaign for one of our primary stakeholder groups, architects. The goal of the campaign is to increase the use of Performance Solutions by practitioners. This is to be done by:
- Increasing awareness - by increasing knowledge about the benefits and processes of performance based design practices.
- Changing attitudes - by engendering a performance mindset within industry and by practitioners recognising why it is important to them as individuals.
- Shifting behaviour - by ensuring current and future practitioners are appropriately skilled and supported to operate in a performance based work environment.
Conditions for Participation:
Not Applicable.
Timeframe for Delivery:
The Services are required to be completed on or before 30 June 2017.
Address for Lodgement:
Tenders must be lodged electronically using AusTender.
Your task is to develop the budget for the project. As such, you must:
- collect and accurately interpret relevant data to develop and finalise a budget
- consult effectively and negotiate outcomes with others on budgetary issues
- accurately complete financial and statistical reports related to budgeting.
Note: Your Assessor will play the role of your supervisor for this assessment task.
Create a detailed budget and reports to accurately reflect the requirements and impact on the organisation.