Reference no: EM132804202

FNSACC412 Prepare Operational Budgets - Sydney metro college

Question 1 - Question and Answers

Answer the following questions in writing.

Question 1. What are the principles of budgetary control?

Question 2. Discuss common forecasting techniques.

Question 3. What are the principles of double entry bookkeeping?

Question 4. What are the principles of statistical analysis and measures of variance?

Question 5. What are the key features of organisational procedures and policies relate to financial administration?

Question 6. What are the components of an operating budget?

Question 7. What are four benefits of an operating budget?

Question 8. How would you calculate the projected income from a business?

Question 9. Who are the stakeholders in a business? Give a detailed description.

Question 10. What are metrics and how are they used?

Question 11. Give an example of a seasonal pattern coding.

Question 12. List and describe each type of budgeting method that you could use to present an operational budget?

Question 13. Budget coordination and preparations are done in accordance with what management principles?

Task 2: Case Study and Practical Assessment

Student Instructions

1. Type all the answers in a word document if required.
2. You can conduct internet research to answer these questions.
3. Provide explanation of 2-3 lines when answering ‘Describe' questions.
4. Provide detailed workings for calculations questions.
5. Provide answers in table format wherever possible.

Question 1 - Restaurant

The case study details are provided in the appendix document ‘Case Study - Restaurant'. Review the details provided and undertake the following:

1. Calculate the sales & COGS for each of the 5 products
2. Calculate the breakeven points for total sales & each product in

s & units

3. Set a budget for the coming 12 months starting from 1/7/2015 ensuring that %'s are shown

4. Determine the budgeted payback period

5. Determine the R.O.I.

6. Compare the actuals to budget?

7. Role play

You are now required to do a role-play with the senior accountant of the organisation (your trainer) and business partners (other students). Undertake the following during the role play:

a) Present the next month budget
b) Provide opportunities to ask questions and respond appropriately
c) Gain approval for implementation.

Assessor will be looking for following during the role play:

• Used active listening and communication skills
• Used questions to confirm requirements and authorisations
• Showed required understanding of content being presented
• Used language and concepts appropriate for the audience
• Showed ability to handle a questions and answer session
• Uses collaborative and inclusive techniques to build rapport
• establish and maintain positive relationships
• Selects and uses appropriate conventions and protocols when communicating.

8. Create and send an email to all staff and business partners advising them regarding the final version of the budget.

Question 2 - Zurich Budgeting Case Study

You are a contract accounts clerk for Contract Accounting Services (CAS). You have been asked by a new client to help them to understand the benefits of budgeting. You have decided to use a case study approach to assist this client. Review the Zurich Budgeting Case Study, located in Appendix. You are now required to respond to the client's budgeting questions by referencing the Zurich Budgeting case study.

Prepare the Client Budget Response report using information from the Zurich Budgeting case study.

1. Zurich employs 60,000 staff and serves customers in 170 countries around the world. Your client wants you to explain how budget milestones are set and confirmed by Zurich.
2. Your client wants you to explain how Zurich's system of Budget Performance Indicators could be used in any business.
3. The client needs you to explain how Zurich ensures that budgetary issues between the large variety of organisations within the group are managed.
4. The client is curious why Zurich employs so many graduates and financial professionals to manage its budget reports.

Question 3 - Budgeted Balance Sheet

This task requires learners to prepare a Budgeted balance sheet based on supporting budgets provided in the appendix document ‘Budgeted Balance Sheet'.

Attachment:- Prepare Operational Budgets.rar