This resource is copyright. Apart from any fair dealing for the purposes of private study, research, criticism or review as permitted under the Copyright Act 1968, no part may be reproduced by any process without written permission as expressed in the Roteworks License Agreement.
The information contained in this resource is, to the best of the project team’s and publisher’s knowledge true and correct. Every effort has been made to ensure its accuracy, but the project team and publisher do not accept responsibility for any loss, injury or damage arising from such information.
RTO Works has developed this content in partnership with Reubarquin Press and with the expert industry guidance of Dominique Bendebiza-Caron from Brighton College.
While every effort has been made to achieve strict accuracy in this resource, the publisher would welcome notification of any errors and any suggestions for improvement. Readers are invited to write to us at hello@rtoworks.com.au.
Hospitality Works is a series of training and assessment resources developed for qualifications within the Tourism, Travel and Hospitality Training Package.
Introduction
Welcome to the Student Assessment Tasks for SITXFIN003 Manage finances within a budget.These tasks have been designed to help you demonstrate the skills and knowledge that you have learnt during your course.
Please ensure that you read the instructions provided with these tasks carefully. You should also follow the advice provided in the Hospitality Works Student User Guide. The Student User Guide provides important information for you relating to completing assessment successfully.
Assessment for this unit
SITXFIN003 Manage finances within a budget describes the performance outcomes, skills and knowledge required to take responsibility for budget management where others may have developed the budget. It requires the ability to interpret budgetary requirements, allocate resources, monitor actual income and expenditure, and report on budgetary deviations.
For youto be assessed as competent, you must successfully complete two assessment tasks:
- Assessment Task 1: Knowledge questions – You must answer all questions correctly.
- Assessment Task 2: Project – You are required to manage finances within a budget for a case study organisation and then report on your findings.
Preparing for assessment
Please read through all of the assessment tasks and related documents carefully before you get started. Ensure that you have everything that you need and seek clarification from your trainer, assessor or workplace supervisor if you have any questions
| Supporting resources: Supporting resources include templates, journals, workbooks and portfolios which can be used to support you in providing evidence of your competence. Your assessor will provide you with these documents before you begin your assessment tasks. For this unit, the supporting resources comprise:
· Café Quarterly Budget (Assessment Task 2) · Budget Report Template (Assessment Task 2) |
Once you have read through the assessment tasks and are satisfied that you are clear on the requirements and submission dates, complete and sign a Student Assessment Agreement. Your assessor will countersign the agreement and keep it on file. You will find a Student Assessment Agreement in Appendix B of your Hospitality Works Student User Guide or your RTO will provide you with one.
Remember to check your Hospitality Works Student User Guide for information about:
- submitting assessments
- assessment appeals
- re-assessment guidelines
- responding to written questions.
Assessment Task 1: Knowledge questions
Knowledge questions are designed to help you demonstrate the knowledge which you have acquired during the learning phase of this unit. Ensure that you:
- review the advice to students regarding answering knowledge questions in the Hospitality Works Student User Guide
- comply with the due date for assessment which your assessor will provide
- adhere with your RTO’s submission guidelines
- answer all questions completely and correctly
- submit work which is original and, where necessary, properly referenced
- submit a completed cover sheet with your work
- avoid sharing your answers with other students.
| Assessment information | |
| Information about how you should complete this assessment can be found in Appendix A of the Hospitality Works Student User Guide.Refer to the appendix for information on:
· where this task should be completed · the maximum time allowed for completing this assessment task · whether or not this task is open-book. Note: You must complete and submit an assessment cover sheet with your work. A template is provided in Appendix C of the Student User Guide.However, if your RTO has provided you with an assessment cover sheet, please ensure that you use that. |
Questions
| a. Bank deposit slip | Bank deposit slip is a type of slip that is provided to customer to deposit fund in the bank. It is required to deposit fund in bank. |
| b. Bank statement | A bank statement is defined as the framework that includes entire transactions over a specific time period. It includes deposit transaction, withdrawal transaction, opening balance as well as closing balance of a particular account holder. |
| c. Banking summary | Bank summary includes a summary of entire transactions and activities that are done in the particular account. It includes recent transactions as well as existing transactions.
|
| d. Business activity statement | BAS that is stand for business activity statement. It is a kind of form that is supposed to be submitted to the Australian taxation office. The entire registered offices are needed to report this to maintain tax obligations including fringe benefit tax as well as other tax amount. |
| e. Cheque book | A cheque book is a book including blank cheques that is provided to every account holder for the payment through cheques. The person who is writing on the cheque is called as drawer. |
| f. Credit card statement | Credit card statement is defined as the statement that defines a summary of utilized credit fund in different aspects under the billing period time (Lessambo, 2018). |
| g. Invoice | An invoice is a document that defines information regarding the services, products that need to be delivered to the clients including due amount and specific payment method. |
| h. Journal entry | Journal entry is a entry that is done for any financial transaction. Journal entries are done in the books of a company. It is converted into general ledger accounting (Hasanaj, et l., 2019).
|
| i. Payroll / wages report | A payroll report is the report that is utilized by the employer to verify liabilities of tax and checking of financial data. It includes different rates, total hours worked, accrued overtime, balances of vacations and contribution of employer tax. |
| j. Merchant statement | A merchant statement is a document that explains entire transactions, sales activity and fees of process in a given month. |
| k. Merchant summary | Merchant summary report defines total number of transactions and total amount that is processed for each transaction. |
| l. Transaction report | A transaction report is a report that defines the data related to the transaction history. It is framed to maintain records for each transaction effectively and efficiently. |
- Provide a description of each of the following types of budget:
| a. Cash budget | A cash budget is a document that is framed to maintain cash transactions of a business. It is helpful to manage total cash inflows or outflows. It is a way to estimate cash inflows and outflows according to the budgeted amount. It is helpful to maintain financial stability of the organization.
|
| b. Cash flow budget | Cash flow budget is the budget that is framed to evaluate entire inflows as well as outflows of a particular period of time. It is the outcome from operating, financing and investing activities of the organization including its opening and closing balance. |
| c. Department budget | Department budget is a budget that is framed to evaluate criteria for each department in the organization such as operation department, finance department and human resources department. |
| d. Event budget | Event budget is a budget that is framed to include entire activities of a particular event. It includes estimation of all cost that would be incurred based plan and research. |
| e. Project budget | A project budget is a document that is completed to estimate entire cost of a project including its activities in different phases of a project. |
| f. Purchasing budget | Purchasing budget is helpful for the organization growth. It includes quantity of inventory that is needed to complete a task during specific period of time. |
| g. Sales budget | Sales budget is the budget that is framed to ensure about marketing department activities. It includes expenses related to sales department that is done to achieve estimated results. |
| h. Wages budget | Wages are the amount that is paid to workers in respect of work on regular basis. It is the budget that is created to ensure specific amount that is utilized to pay wages. |
| i. Total or master budget | A total or master budget is a kind of financial document that includes entire criteria for a specific period of time. It is divided into quarters and on monthly basis. |
- Explain how the following factors may assist in preparing financial and statistical reports for a business:
| a. Cash flow | Cash flow is defined as the term that overall inflows and outflows of cash so that financial and statistical report could be designed. |
| b. Covers | It is a way to measure ability as well as capability of a company to meet the financial obligations of a company. |
| c. Expenditure | It is needed to determine overall expenditures of a company so that financial and statistical report could be designed properly. |
| d. Occupancy rates | Occupancy rate is defined as the ratio that defines the ration between the utilized space and rented space to the available space at the workplace.
|
| e. Sales performance | Sales performance is defined as the total amount that is analysed from the entire activities in the sales department. It is important to maintain financial and statistical report of the organization. |
| f. Stock (inventory) level | It is needed to analyse current stock and required amount of stock to maintain stock department effectually. |
| g. Staff costs | It is required to determine the actual staff cost to identify overall expenditure. |
| h. Variances | Variances are defined as the difference between actual happenings and projected budget so that financial report could be designed. |
| i. Wastage | Wastage is defined as the amount that is wasted due to unforeseen activities. It is required to maintain financial as well as statistical report. |
| j. Yield | Yield is known as one of the component of return on investment. It is helpful to determine the total amount of return on investment. |
| k. Income | It is needed to calculate overall income of the organization to make financial and statistical report of the organization. |
| l. Commercial account activity | Commercial account activity is a type of activity that defines financial stability including accepting of deposits, checking of different account details and provide financial products. |
| m. Commission earnings | Total amount of commission earnings is a part of income that is earned in respect of some other thing. It is needed to calculate total amount of earning respectively. |
| n. Daily, weekly and monthly transaction reporting | Reporting plays a vital role to maintain performance of the organization. It must be done on daily, weekly and monthly basis according to the requirement of the organization. |
| o. Department/area performance | There are different departments in every organization. It is needed to analyse the performance of each department to maintain financial and statistical report. |
- Explain the importance of a budget and budget control for a business.
Answer
Budget plays a vital role for overall growth and expansion of the organization. It is a way to achieve goals and targets under the budget as well as available finance in the organization. It is helpful to concentrate on different aspects such as improvement in profit, enhancing returns on the investment, reduce variable as well as fixed cost and focus on cash flow activities. It is important to focus on total inflows and total outflows of the organization in particular time period. Budget control is helpful to achieve financial as well as overall goals and targets of the organization. It is beneficial to maintain financial stability, tracking expenses and making transactions on time that is helpful for the effectiveness as well as efficiency of the organization (Hasanaj, et l., 2019).
- List two techniques a business can use for maximising budget performance.
Answer
There are two techniques that must be followed to maximise budget performance such as
1) Rolling of budget and forecasting must be done time to time
2) Tracking must be done to get high amount of output (Palepu, et al., 2020).
- Explain the term budget variance.
Answer
Budget variance is a term that shows different between actual budget and estimated budget. Actual budget shows the amount that defines actual expense that has been paid and actual income that has been earned on the other side estimated amount is a estimation that how much income would be earned and how much expenses would be spent on different aspects. At a time when actual income is greater than the estimated income would result in positive result on the other side when actual expenses is greater than the estimated expenses would result in negative result.
- Explain the reporting that is completed for the following cycles/periods and write down a procedure for each that is relevant to a hospitality business.
| Cycle | What reporting should happen | A relevant procedure |
| Monthly | Monthly reports such as operation department report and finance department report must be considered on each month. | It could be done in group meeting or a mail. |
| Quarterly | There used to be four quarters in a particular year. There are three months in a particular quarter. Quarterly report including three months report must be discussed (Palepu, et al., 2020). | It could be mentioned in the books of accounts of a company. |
| Annually | A annual report defines twelve months report including information regarding twelve months is discussed effectually. | It could be mentioned in annually records such as annual report. |
- For two different accounting software programs of your choice, write down at least one function and one feature of each and how these can help in monitoring budgets.
Answer
There are two different accounting software’s that could be utilized for work and monitoring of each budget type such as –
1) Spreadsheet – It is a way to monitor budget effectively and efficiently. It includes statistical analysis.
2) Forecasting software – This software is needed to plan different aspects such as financial resources to support future activities in an effective and efficient manner.
These both software play vital role to monitor budget in different finance aspects.
- What information does an annual financial report contain and how should it be presented?
Answer
Annual financial report is a report that defines output of financial department annually. It includes financial statement of the organization such as income statement, balance sheet, cash flow statement and different aspects of the organization. It defines financial stability as well as overall performance of the organization. It includes financial information in the form of graphs and break down structure. Annual financial report is based on the operating activities, investing activities and financing activities of the organization. It shows liquidity as well as financial stability of the organization. It defines utilization of cash generated from the operating, investing and financing activities of the organization (Pelekh, et al., 2020).
- Discuss how a business will show the findings of the projected budget versus the actual budget and how this might be presented.
Answer
Projected budget is the budget that is designed the amount f overall inflows that would be earned and amount of overall outflows that would be spent out in specific period of time. Projected budget must be discussed with the head of each department so that it could be designed perfectly. An analysis must be done to discuss findings of projected budget effectively and efficiently. Actual budget is the actual situation that has been occurred during specific time of period. Actual budget is the term that is under the financial department that shows actual happenings of total inflows and total outflows. Projected budget must be discussed with all team members as well as members of each department. It must be designed by taking reviews from all senior authorities. Differentiation between projected budget and actual budget must be done effectively and efficiently. Improvements to remove negative aspects must be done productively (Lessambo, 2018).
| Student’s name: | |||
| Did the student provide a sufficient and clear answer which met the requirements of the assessor marking guide? | Completed successfully? | Comments | |
| Yes | No | ||
| Question 1a | |||
| Question 1b | |||
| Question 1c | |||
| Question 1d | |||
| Question 1e | |||
| Question 1f | |||
| Question 1g | |||
| Question 1h | |||
| Question 1i | |||
| Question 1j | |||
| Question 1k | |||
| Question 1l | |||
| Question 2a | |||
| Question 2b | |||
| Question 2c | |||
| Question 2d | |||
| Question 2e | |||
| Question 2f | |||
| Question 2g | |||
| Question 2h | |||
| Question 2i | |||
| Question 3a | |||
| Question 3b | |||
| Question 3c | |||
| Question 3d | |||
| Question 3e | |||
| Question 3f | |||
| Question 3g | |||
| Question 3h | |||
| Question 3i | |||
| Question 3j | |||
| Question 3k | |||
| Question 3l | |||
| Question 3m | |||
| Question 3n | |||
| Question 3o | |||
| Question 4 | |||
| Question 5 | |||
| Question 6 | |||
| Question 7 | |||
| Question 8 | |||
| Question 9 | |||
| Question 10 | |||
| Task outcome: | ¨ Satisfactory | ¨ Not satisfactory |
| Assessor signature: | ||
| Assessor name: | ||
| Date: | ||
Assessment Task 2: Project
Information for students
You are required to manage finances within a budget for a case study organisation and then report on your findings.
You will need access to:
- your learning resources and other information for reference
- accounting software (Wave free online software)
- your Café Quarterly Budget
- your Budget Report Template.
Ensure that you:
- review the advice to students regarding responding to written tasks in the Hospitality Works Student User Guide
- comply with the due date for assessment which your assessor will provide
- adhere with your RTO’s submission guidelines
- answer all questions completely and correctly
- submit work which is original and, where necessary, properly referenced
- submit a completed cover sheet with your work
- avoid sharing your answers with other students.
| Assessment information | |
| Information about how you should complete this assessment can be found in Appendix A of the Hospitality Works Student User Guide.Refer to the appendix for information on:
· where this task should be completed · how your assessment should be submitted. Note: You must complete and submit an assessment cover sheet with your work. A template is provided in Appendix B of the Student User Guide. However, if your RTO has provided you with an assessment cover sheet, please ensure that you use that. |
Activities
Complete the following activities.
| You are the café manager of a popular café within the Blue Healer Hotel and Spa. The owner has provided you with the budget for the next quarter and it is part of your responsibility to allocate resources and manage the finances within the budget.
The budget has been increased in month three as this is a popular month where lots of visitors stay at the Blue Healer and neighbouring guest houses as there is a music festival on. As such, additional wait staff will be hired on a casual basis and less private catering jobs will be booked in as the café will be at its peak. Additional information: · The business uses local suppliers but due to a recent drought the cost of meat with the usual supplier, Fresh Farms, went up by 7% last month. · The café serves breakfast, light meals, light dinners and sharing plates, smoothies, coffee, pastries and is a local favourite for its homemade iced tea. · Due to the clientele of the hotel and health spa, and the area within which the Blue Healer is located, there have been a number of requests for more vegetarian and vegan options. · Apart from you and the owner (you also cook and prepare food) there is full-time chef named Navneet, two part-time kitchen porters and casual wait staff employed. · There has been a pattern of food wastage in the past two months with too much fruit purchased that spoiled before it could be used as the iced tea became so popular that not as many smoothies were made and sold. · The food budget has blown out over the past three months but the owner can’t increase it as the profit from the café is being invested into building and landscaping works to create an outside undercover area that will double the capacity of the café. · The business uses Wave Accounting free online software for recording income and expenditure but makes use of Excel spreadsheets for budgeting and planning purposes. |
- Review past information and future budget and plan fund allocation
| Review the following:
· Case study and additional information above · Café Quarterly Budget – budget page · Café Quarterly Budget – past information page Look at the cost of sales figures related to food and beverage purchases which is the food and beverage budget that is allocated to you. Do some research and source some local meat suppliers in your area and check out the costs of menu items you have planned for previously in the past, or meals you are familiar with and see what that 7% could look like and the impact over a three month period. Bring this information with you to the meeting in the next activity step to provide recommendations to the owner. Think about how you can work effectively with the budget allocated to you and the changes you could make to manage the finances more effectively. Make notes on your research and findings for use in the following activity. Answer As the business utilizes native suppliers but because of the current drought the meat cost with the ordinary suppliers named Fresh Farmed has increased by 7% related to previous year. That is why we have source few native suppliers in our area and we have also checked the cost of items of menu that we have mainly planned for lastly in the previous time (Laffan& Lindner, 2014). Effective management of budget combines various skills. We could work effectively and efficiently with the budget that is mainly allocated to us by following the given steps: 1. Preparation – Budget direct us predict and spending revenue for the specific time. We might have the short-duration budget that covers not further than a year, the mid-duration budget, or the long-duration budget that predicts the finances of business for around 4-5 years or more than that (Laffan& Lindner, 2014). 2. Delegation – Senior management must entitle who will be accountable for updating and maintaining confined budget. We will also require the plan of these point individual so entire updates of could come jointly into the unified whole. 3. Collaboration and monitoring – Daily monitoring is important to maintain the healthy and effective budget. Collaborating with employee in particular department could highlight the differences between high-level potentials and definite regular requirements (Lilien&Grewal, 2012). 4. Forecasting – Planning particular strategy of business begins with the accurate image of where we presently are and where we preferred to go. Appropriate and accurate numbers from the daily monitoring of budget previous year assist us in understanding where we exceeded or met potentials, and where we hit unforeseen difficulties or discrepancies. At the last stage of year, the data could assist in informing our upcoming yearly budget to be further tailored to the definite operational requirements (Lilien&Grewal, 2012). The changes that we can make for managing the finances very effectively are given below: 1. We should track the expenditures for improving finances (Griffin, 2021). 2. We should create the actual monthly or annual budget. 3. We should pay all our bills on accurate time each month 4. Save the cash for affording large purchases 5. Start the strategy of investment (Griffin, 2021). |
- Have a meeting with the owner to discuss the budget and fund allocation
| Now that you have reviewed all the information, have a meeting with the manager (your assessor) at the date and time advised to discuss any concerns, priorities and changes you would like to make before you allocate the funds. Review the new suppliers you have sourced with your assessor.
During the meeting, you will need to demonstrate effective communication skills including: · Speaking clearly and concisely · Using non-verbal communication to assist with understanding · Asking questions to identify required information · Responding to questions as required. Answer Meeting Minutes Date – 14th July, 20XX Time – 10:00 am Duration – 10 min Venue – Conference hall Attendees – Manager, Owner Meeting Manager – Good morning, sir! Owner – Good morning! Manager – How are you sir? Owner – I am good, how are you sir? Manager – I am also fine. This meeting I have conducted so that I discuss my concerns, changes and priorities that I would make before allocating the funds. Also I want to discuss the new suppliers that I have particularly sourced. Owner – Yes sure, please go ahead with the discussion. Manager – Yes sir, so firstly I want to discuss my concerns with you. There are some factors I need to mention that could impact the budget decisions. Owner – Yes, please mention. Manager – These are size of funds available and long-term objectives of business. As the Manager of café, I must be aware of the size of consistent streams and also those that might be further flexible. While making decisions related to budget, we should consider just not only the straight impact of the operating or capital expenses but also their indirect impacts. Owner – Okay, we will take your concerns seriously and will discuss these with all our stakeholders. Manager – Yes sir, now I want to discuss some changes that I would like to make before allocating the funds. I would like to determine all the spending needs before making decisions related to budget as the decisions related to budget must be based on actual and possible figures and facts. Then I would like to identify methods of funding before allocating funds. Owner – Okay, we will also consider these changes. Manager – Yes sir, at last I would like to discuss my priorities that I would like to make before allocating funds. I have priority that is understanding prime cost. This cost is particularly made up of inventory of beverage and COGS that we purchase for making the items of menu and costs of labour. I also have sourced a new supplier for our café named Fresh Foods, and this supplier is supplying us meat at the cheaper cost and its quality of meat is very good. Owner – Okay, if you are saying this then I recommend you to go ahead with this supplier. Manager – Okay sir, as you say. |
- Allocate funds
| Using the Café Quarterly Budget template – Fund allocation page, allocate the funds for the quarter to the relevant areas and what you will purchase from existing or new suppliers. Make notes in the relevant column to support your choice and rationale. Add or delete rows as necessary and apply cell formatting and the use of formula functions as necessary.
Submit to your assessor. |
- Meet with your team
| Briefly meet with Navneet (your assessor) to discuss the resource allocations and the planning for the next quarter in relation to fresh produce, reduction of wastage and recipe variation.
Make sure that you discuss the importance of sticking to the budgeted allocations and discuss ways that food wastage can be avoided to ensure the budget is met. During the meeting, you will need to demonstrate effective communication skills including: · Speaking clearly and concisely · Using non-verbal communication to assist with understanding · Asking questions to identify required information · Responding to questions as required. Answer Manager – Good morning, Navneet! Navneet – Good morning! Manager – How are you? Navneet – I am good, what about you? Manager – I am also fine. I have conducted this meeting to discuss about allocation of resources and many other things. Navneet – Yes please, go ahead. Manager – For allocation of resources, we must follow some steps and these steps are given below: 1. Allocate the resource to each department 2. Determine effectively attributes of resources 3. Level all resources 4. If necessary, allocate the resources again 5. Track utilization of resources Navneet – Okay, we consider your thoughts regarding this. Manager – We have also planned something for upcoming quarter in connection to recipe variation, reduction of wastage and fresh produce. These all will be considered as we are going to implement the policy of sustainability in the café that will help in maintaining quality and environment clean and effective. Navneet – Yes you are right we should implement sustainability policy in café. Manager – I want to discuss the necessity of sticking to the allocation of budget. This mainly enables the owner for concentrating on decreasing costs, enhancing profits, maximizing investment return and cash flow. Budgeting is the very important basis for entire success of business and it assists with both control and planning of business finances. Navneet – Yes, you are correct in your opinion. This is a very important topic to discuss. Manager – Yes, now I want to discuss some ways that wastage of food could be avoided for ensuring the budget is particularly met. These ways include curing, freezing, fermenting, canning, drying and pickling could utilize for making food last and for longer duration. Navneet – Yes, I agree with you. All your points are accurate and we will consider all your points to the owner. Thank you for sharing this with us. Manager – It is all my pleasure. |
- Monitor activities – month 1
| It is the end of month 1. You have kept to the budget and the funds have been allocated as you planned for.
Using the relevant accounting software and the exact figures from your fund allocation document, enter the expenses you have incurred over the first month exactly as they are represented in your fund allocation page of your spreadsheet. Print a report of the entries or take a screenshot and submit to your assessor. |
- Monitor activities – month 2
| It is the end of month 2. You have kept to the overall budget but funds have had to be rearranged in the following ways:
· There was an accident when unloading the vegetable crate one week and all the produce was spoiled. You had to purchase a second crate which pushed your amount spent with the vegetable supplier up by 10%. · To accommodate for the overspend, you reduced the amount spent on cakes and pastries by that same amount and baked inhouse. Enter the expenditure figures into the accounting software as outlined in your fund allocation document but consider the information above and work out the variances. Print a report of the entries or take a screenshot and submit to your assessor. |
- Monitor activities – month 3
| It is the end of month 3. The following has happened:
Due to recent environmental conditions, less people came to the local area than planned for and many people cancelled their accommodation at Blue Healer. Some of the food for the first week had already been ordered and as such – there was a lot that went to waste. The figures have been calculated for the month based on 4 weeks. $6000 was spent on food in preparation for the increased numbers but during the first week there was a total waste of 35%. Many items were able to be frozen, and as such the budget can be amended for the next quarter to try and recoup some of the losses. The following three weeks the same amount was spent as budgeted for the two prior months, being $3,750 per week and a total of $6000 for the month was spent on beverages. Enter the expenditure figures into the accounting software as outlined in your fund allocation document but consider the information above and work out the variances. Print a report of the entries or take a screenshot and submit to your assessor. |
- Develop an actual budget from the past three months
| Develop an actual budget using the past information and your financial records you complied and submitted in the previous activity steps. Make a new page in the Café Quarterly Budget spreadsheet and name it ‘Actual Budget’.
Assume the following information: · Variances of 10% are not considered unusual. · The actual income is as follows: · The operating expenses are all correct. Submit to your assessor. |
- Conduct research and write a budget report
| Compile a report to the owner about what has occurred over the past three months. You will also need to conduct some research when writing this report as outlined below. Submit in the timeframe as provided to you by your assessor.
Include the following in your report: · The status of the budget and the variations in relation to what was projected – use percentages and figures to discuss a detailed account of what has occurred in the overall actual budget in relation to projections. · Lessons learned from what has occurred in the past quarter and ideas for how you can prevent similar situations in the future by improvements that can be made. · Undertake research to investigate new or different approaches to budget management and then outline the benefits and advantages of different approaches you could take and how these approaches may impact on customer service levels or staff. · Provide recommendations for budget management for the next quarter and provide estimates for this period. Make sure you use correct budget terminology and your report is neatly presented, clear and concise with the use of statistical representations. Use the Budget report template to guide your work. Submit to your assessor. Budget report Introduction This report let the organization compare the definite expenditure with mainly what was planned for. We mainly plan the budget for a particular given time, and then at the last of that particular period, the budget report mainly shows how much amount we have incurred (Liebowitz& Beckman, 2020). Body Outline: The budget has been mainly allocated in café accurately to each department and there are variations of 10%. The actual income is $1760. Lessons that are learned from the previous quarter are that the food budget should be made as per the funds and resources available only and the café should focus on the decrease of food waste so that there should be a cost reduction (Liebowitz& Beckman, 2020). Different approaches to the management of budget are given below: 1. Incremental budgeting – The advantages of this approach are given below: – It is easy and quick to maintain. – It suits only stable companies with satisfactory historic numbers (Anrig, 2015). The disadvantages are given below: – It embeds previous inefficiencies and issues. – Economically unproductive activities could continue (Anrig, 2015). 2. Zero-based budgeting – The advantages are given below: – Obsolete and inefficient operations could be superseded. – It particularly responds to all changes in the environment of business (Month, 2017). The disadvantages are given below: – Staff may be demoralized by the requirement for significant effort and time. – Skills of management may be deficient (Month, 2017). Recommendations The recommendations that we can consider by following the given points: 1. Set actual expectations of the budget – Justify all expenditure in connection to its long-duration versatility and profitability (Snell & Morris, 2018). 2. Separate variable and fixed expenses – Every business has particular expenses that mainly remain constant and reliable throughout the whole year and some that might vary. 3. Always check for any competencies in the budget – At the last of each period, the revenue must be capable of covering entire costs (Snell & Morris, 2018). |
Assessment Task 2: Checklist
Final results record
| Student name: | |
| Assessor name: | |
| Date: | |
| Unit name: | |
| Qualification name: |
Final assessment results
| Task | Type | Result | ||
| Satisfactory | Unsatisfactory | Did not submit | ||
| Assessment Task 1 | Knowledge questions | S | U | DNS |
| Assessment Task 2 | Project | S | U | DNS |
| Overall unit results | C | NYC | ||
Feedback
- My performance in this unit has been discussed and explained to me.
- I would like to appeal this assessment decision.
Student signature: ___________________________________________ Date: _________________
- I hereby certify that this student has been assessed by me and that the assessment has been carried out according to the required assessment procedures.
Assessor signature: _________________________________________ Date: _________________
References
Anrig, G. (2015). How we know collaboration works. Educational Leadership, 72(5).
Clark, R. (2013). The japanese company. Tuttle Publishing.
Griffin, R. W. (2021). Management.Cengage Learning.
Hasanaj, P., & Kuqi, B. (2019). Analysis of financial statements. Humanities and Social Science Research, 2(2), p17-p17.
Laffan, B., & Lindner, J. (2014). The budget: who gets what, when, and how?.Oxford University Press.
Lessambo, F. I. (2018). Financial Statements. Analysis and Reporting.
Liebowitz, J., & Beckman, T. (2020). Knowledge organizations: What every manager should know. CRC press.
Lilien, G. L., &Grewal, R. (Eds.).(2012). Handbook on business to business marketing.Edward Elgar Publishing.
Month, C. (2017).US Department of Education. Notes, 8, 14.
Palepu, K. G., Healy, P. M., Wright, S., Bradbury, M., & Coulton, J. (2020). Business analysis and valuation: Using financial statements. Cengage AU.
Pelekh, U., Khocha, N., & Holovchak, H. (2020). Financial statements as a management tool. Management Science Letters, 10(1), 197-208.
Snell, S., & Morris, S. (2018). Managing human resources.Cengage Learning.