Reference no: EM131225135

Manage Finances within a Budget Written Assessment

Learning Outline - Within this resource, you will be covering the following key topics:

• Interpret and manage multiple budgets.
• Allocate budget resources.
• Monitor financial activities against budget.
• Identify and evaluate options for improved budget performance.
• Complete financial and statistical reports.
• Use correct budget terminology.

Using these key topics as a guide, you will work with your trainer/assessor to develop your skills and knowledge. The role of your trainer/assessor is to assist and guide you through your learning journey to achieve your goals.

Answer the following questions-

1. List three types of budgets that could be used in the Tourism, Hospitality &Events industry.  Provide a brief explanation on what each budget is used for.

2. When allocating funds from a budget, why is it important to stick to the budget and allocate as per agreed priorities?

3. If a change needs to take place to income and / or expenditure priorities after a budget has been developed, why is it important to discuss these changes with appropriate colleagues prior to the change/s being implemented?

4. After a budget has been finalised, each cost centre can then organise the resources needed to meet budget targets. 

Why is it important to involve all relevant personnel with these decisions?

5. In relation to Question 4 above, why is it important to keep detailed records of resource allocation?

6. What is "budget control" and why is it important that it is promoted throughout the workplace?

7. List three types of financial records that could be used to check actual income and expenditure against budgets.

8. Why is it important that all financial commitments are included in all documentation when monitoring the budget?

9. Explain the difference between a favourable and un-favourable variance.

10. Briefly describe the process you would follow if you identified a cost variation.

11. Briefly describe how you would investigate and develop options for potential budget performance improvements.

12. You have reviewed the organisation's monthly budget for each department against actuals to determine if budget targets are being met.  Who should you advise of the outcome?

13. New approaches to budget management can include... (select the incorrect-answer)

a) Negotiate with existing suppliers

b) Evaluate staffing requirements

c) Introduce marketing and incentive schemes

d) Re-decorate front reception.

14. Why is it important to communicate the benefits and disadvantages of any new approaches to budget management with key personnel?

15. Why is it important to consider impact on service levels when developing new approaches to budget management?

16. Which of the following are not financial or statistical reports used to monitor budget performance?

a) Occupancy Reports

b) Sales Reports

c) Supplier Price Lists

d) Expenditure Reports

17. In order to monitor budget performance with accurate and up-to-date financial information, financial reports should be prepared... (select the correctanswer)

a) Daily

b) Monthly

c) Annually

d) Every 5 years

18. MYOB has a 'prepare budgets' window where you can enter budget figures for this financial year as well as next financial year and then produce budget variance reports after 'actual' data has been entered. 

True or False?