Reference no: EM132332640
ASSESSMENT TASK 1:
1. Discuss some of the costs involved while performing customer engagement operations, using suitable examples from your workplace.
2. Using suitable example explain why fixed cost is not always fixed.
3. What do you understand by Break-Even Analysis? Discuss the situations where break-even analysis can be used.
4. What do you understand by a budget? Discuss the various objects of preparing a budget.
5. Discuss the differences between the capital expenditure and revenue expenditure using suitable examples.
6. Discuss some of the methods that can be used for effective budget presentation.
7. Explain how an organization can have effective budget management.
8. Discuss why it is important to compare the actual financial results to the budget.
9. Give an example of a financial control system being used in your organization
ASSESSMENT TASK 2 - CASE STUDY ANALYSIS
Preparation and presentation of budget
STUDENT INSTRUCTIONS:
For this Assessment Task 2, you are required to analyse the given case study and answer the questions given below. To complete this task you would be given a week's time.
Case Study : Have your flu shot!
The Flu Shot department at The Hospital will soon enter flu season.
To prepare, the department is stocking up on Band-Aids - regular and glow-in-the-dark. A regular Band-Aid is budgeted at $1, while a glow-in-the-dark Band-Aid is budgeted at $2. The net revenue for a flu shot is $20/patient.
During last year's flu season, the department saw 400 adults and 700 children. Children always request glow in the dark band-Aids.
You are required to answer the following questions:
a) Prepare a statistical budget, in a tabular format.
b) Calculate the revenue and operating budget to find out the total profit or loss.
c) Present the result in a graphical format.
The Hospital's flu season campaign brings forth additional patients resulting in actual patients as 300 adults and 1,000 children. Perform a variance analysis and answer the following questions.
d) How does volume change affect budgeted revenue and expenses?
e) How does change in patient mix affect the department's finances?
ASSESSMENT 3 - SCENARIO ANALYSIS
Break-even Analysis
STUDENT INSTRUCTIONS:
For this Assessment Task 3, students are required to analyse the given scenarios and answer the given questions related to Break-even Analysis. You will be given a week's time to complete this task.
Scenario A - Basis break-even point problem
CAC students, including you, are planning to organize a movie show function in CT theater for fundraising to help victims of recent earthquake in Timbuktu. Your team is worried about the costs involved and expected revenue from this function. The team has asked you to determine the number of tickets to be sold to ensure that the program is at least break-even.
The data you need to make your calculation is as follows:
- Total Fixed Costs: $10,080
- Variable Cost per Participant: $2.00
- Ticket Price per Participant: $20
Scenario B - Variation of the basic break-even point problem
This problem is much the same problem as in Scenario A except that you are given the number of participants and you must work out what is the minimum price that spectators must be charged.
The data you need to make your calculation is as follows:
- Total Fixed Costs: $10,000
- Variable Cost per Participant: $5.00
- Number of Participants Required: 500
Scenario C - Awards evening
The club committee are putting on an awards evening in the clubhouse. The ticket price will be $30 per person and it is expected that 100 people will attend. The committee will spend $1500 on entertainment and prizes.
What is the maximum cost of the meal per person that can be afforded, if the event is not to make a loss?
Scenario D - Calculating the break-even point of three possible venues for an event
The committee of a sport organisation is considering three different venues to stage a major fundraising event.
- Venue A has a maximum seating capacity of 500 people and costs $1,200 to hire.
- Venue B has a maximum capacity of 1000 and costs $3,500 and
- Venue C has a maximum capacity of 2000 and costs $9,000.
If the variable cost for each participant is $5.20, which venue would be the most profitable at maximum capacity, if the price per person is $10?
To solve this problem you will need three separate spreadsheets, one for each venue
ASSESSMENT TASK 4 - PROJECT REPORT
Presenting, monitoring and controlling budgeting operations
STUDENT INSTRUCTIONS:
Assessment 4 is a project report and presentation task, where students are required to prepare a budget, present it using suitable presenting method, analyse the variance in the budget and discuss the budget controlling mechanism. Students will be given 2 weeks' time to complete this project report.
As this is the skills and knowledge activity, students should use this opportunity to demonstrate as much of the skills and knowledge as they can. Students may add in any further information that they feel is relevant and demonstrates your understanding.
The following guidelines should be used to prepare the report.
a) Select an organisation of your choice; give a brief description of the major activities of the business, products and services.
b) Select an activity that will be carried out by the organization in next quarter. Explain the activity, its major stakeholders and processes involved in the activity.
c) Prepare a budget for the activity. You may consider the figures from previous similar activity being carried out.
d) Once the activity has been completed discuss the differences between the budget and actual figures. Also perform variance analysis and explain the reasons for the variance.
e) Outline the financial delegation policy of organisation, financial control systems and requirements and discuss how financial control system has been implemented.
f) Give suggestion for future budget management improvements.
g) Present the entire budget process using suitable presentation method to the class, considered them as the relevant stakeholders.