Reference no: EM133040603
SITXFIN003 Manage finances within a budget - Duke College
Manage finances within a budget
The purpose of this assessment is to assess your underpinning knowledge to complete the tasks outlined in the elements and performance criteria for this unit of competency and relating to the following aspects:
• types of financial records:
o bank deposit documentation
o bank statements
o banking summaries
o business activity statements
o cheque books
o credit card transaction statements
o invoices
o journal entries
o labour and wages reports
o merchant statements
o merchant summaries
o transaction reports types of budgets:
o cash budgets
o cash flow budgets
o departmental budgets
o event budgets
o project budgets
o purchasing budgets
o sales budgets
o wage budgets
o whole of organisation budgets
• factors for consideration in the preparation of financial and statistical reports:
o cash flow
o commercial account activity
o commission earnings
o covers and financial return
o daily, weekly and monthly transactions
o expenditure
o income
o occupancy rates and financial return
o performance of department, project and/or products and services
o sales performance
o sales returns
o staff costs
o stock levels
o variance in income and/or expenditure
o wastage
o yield
• use, contents of and formats for:
o budgets
o financial reports
o statistical reports
• budget terminology
• specific industry sector and organisation:
o use of budgets to control costs and enhance profitability
o importance of budget control
o techniques for maximising budget performance
o financial reporting procedures and cycles o features and functions of accounting software programs used to manage budgets
Instructions for assessment including WHS requirements
You are required to address all questions to achieve competence.
Assessment 1: Written Test
Question 1
List 8 examples for financial records
Question 2
List 4 different types of budgets.
Question 3
What is the purpose of preparing a draft budget?
Question 4
What should you do with the feedback from the draft budget?
Question 5
List 2 people the final budget might need to be distributed to.
Question 6
Why is it important for each department head to understand their part of the budget?
Question 7
Why should all staff have some knowledge of the budget for their area?
Question 8
Once the final budget has been approved, how often should it be monitored?
Question 9
As well as receiving the final budget the management team should be advised of their reporting duties. What should their report contain?
Question 10
Name 2 financial reports you might generate from your accounting system to check your budget against actual income or expenditure.
Question 11
Every revenue and expense item on the Profit and Loss Statement should be compared to what?
Question 12
When revenue variances occur, why should you talk to the staff to help identify, and find options to Address the issue?
Question 13
List 2 factors that can cause variances in staff budgets.
Question 14
List 3 colleagues you may advise if you noticed that there were deviations between your budget and your targets.
Question 15
List 2 ways you might research new approaches to managing your budget.
Question 16
List 3 things you need to include in your budget report, to give the decision maker enough information to do a clear cost versus benefit analysis of the budget request.
Question 17
If you are cutting expenditure, why must you be careful that the cuts do not cause the level of service and product to fall?
Question 18
Name an accounting program you can use to help manage budgets.
Assessment 2
Case study and Project
Your Task:
Task 1: Case Study Analysis
Top of the Town Hotel has asked you to calculate the variance for the following figures for the month of July and August. Also calculate the total profit that was budgeted and actual. Analyse the findings and inform them about the variance as they are concerned and would like to monitor the income, expenditure, profit levels, budgetary performance of their Food and Beverage Department.
The Hotel owners and managers would like to know from you the major areas of concern where there is a deviation that needs further monitoring and improvement.
PART B
Answer the following questions.
Questions:
1. Explain the importance to the owners of monitoring budgets and why do you think it will help them to manage their finances better for the business.
2. Explain to them the use of analysing the monthly budget and comparing the forecasted budget against the actual budgets.
3. Explain your findings and possible reasons for these variances.
4. Research and suggest what improvements do you think the owners can take to improve this situation?
Task 2 - Variance Analysis Note
You have been provided with the projected data sheet for reference in the Task 2 Spread sheet.
In this task you are provided with an excel file with 2 spread sheets
(Budgeted Rooms Revenue Sheet, Actual Rooms Revenue sheet) with the actual figures on the rooms for a given quarter. You are required to calculate the actual revenue that has been generated for each month in the given quarter based on the actual occupancy rate.
Calculate the following details using the appropriate sheet as per the given instructions Budgeted Rooms Revenue Sheet
In this sheet first calculate the total projected/forecasted revenue per room type for all 365 days.
Budgeted Rooms Revenue Sheet
• You are also required to calculate total projected/forecasted revenue per room type for each month for Jan, Feb and Mar.
• Calculate the total rooms for each month -
• Calculate the Total Revenue for all room types for each month -
• Calculate the total projected revenue for 3 months (Jan, Feb and Mar) -
Actual Rooms Revenue Sheet
In this sheet you are provided with the Actual occupancy for each month.
• Calculate the Revenue per room type for each month (Jan, Feb and Mar)
• Calculate the total rooms for each month -
• Calculate the Total Revenue for all room types for each month -
• Calculate the total revenue per room for 3 months (Jan, Feb and Mar) -
Attachment:- Manage finances within a budget.rar