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SITXFIN004 Prepare And Monitor Budgets

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Introduction

Welcome to the Student Assessment Tasks for SITXFIN004 Prepare and monitor budgets. 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

SITXFIN004 Prepare and monitor budgets describes the performance outcomes, skills and knowledge required to analyse financial and other business information to prepare and monitor budgets. It requires the ability to draft and negotiate budgets, identify deviations, and manage the delivery of successful budgetary performance.

For you to be assessed as competent, you must successfully complete three assessment tasks:

  • Assessment Task 1: Knowledge questions – You must answer all questions correctly.
  • Assessment Task 2: Budget planning project – You must complete a budget template and participate in a meeting to discuss the budget. You must then present the budget to your team.
  • Assessment Task 3: Budget monitoring and review project – You must review budget figures and report on these as part of monitoring processes.

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:

·           Marketing Budget Briefing Report Template (Assessment Task 2)

·           Profit and Loss Reports 2017/18 and 2018/19 (Assessment Task 2)

·           Finance Policy and Procedures(Assessment Task 2)

·           Marketing Expenditure(Assessment Task 3)

·           Marketing Budget Analysis and Recommendations Report Template(Assessment Task 3)

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

Information for students

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

  1. Describe the purpose of each of the following budgets:
Budget type Purpose
a.     Cash/Cash flow budget The purpose of the cash flow budget is for cash flow estimation for a particular period, so that if you want to know about the cash coming information and the process of maintaining a cash flow statement for a given timeframe, and gives you direction for allocating the budget.
b.     Departmental budget The purpose of the department budget is for predicting the transaction such as how much expenses and income is spent for getting the organizational goal and it is also helpful for managing performance. (Gegedyush, 2022)
c.     Event budget Setting the organizational goal is a crucial step during the planning, this budget is helpful for forecasting the financial budget for the event and helpful in controlling the revenue and expenses, identifying the success. (Dowson, & Bassett, 2018)
d.     Project budget The project budget purpose is for cost estimating for each part of the budget. This project is helpful for expenditure expectations, ensuring funds are ready for a particular time, and gauging performance.
e.     Purchasing budget Purchase budgets are basically for the wholesaler who is not producing their individual goods, it is for budgeting purposes.
f.      Sales budget The sales budget’s purpose is to manage resources and profits based on expected sales, and helpful in estimating the current sales budget with the help of differences in the previous and current budgets so that company knows its financial standing.
g.     Wages budget This budget-creating purpose is for a salary that is maintained for estimating how much the organization’s budget is used or distributed for payroll. This budget is helpful for knowing the track of the company.
h.     Organisation wide budget. This budget is prepared by the financial manager but for the owner for knowing the expenses and anticipated changes are helpful for business support and in achieving organizational goals.
  1. Define each of the following budget terminology.
Budget type terminology Definition
a.     Budget variance

It is ansecretarial term that labels actual costs which can be higher and lower than the standard cost.

The negative figure indicates a shortfall of the budget, which may happen revenues to error or costs to come in advanced than expected. This variance is calculated by subtracting actual or standard figures for each line item.

b.     Balanced scorecard It is a planned management presentation metric that can be very helpful in improving their internal operations so that improving internal operation is helpful for the external outcome. It is helpful in measuring the performance data and the feedbacks are helpful in future taking decision.
c.     Financial forecast A financial forecast is a process from which the company estimates a business’s future performance, it is a prediction that how the financial position of the business is to look in the future.
  1. Describe why companies may choose to develop budgets.

Answer

Budget plays a very vital role in every business for their success. It would be enabled a business owner to distillate on business improving profits, its tumbling cost, it is helpful for both controlling and planning the business finance. Companies are developing the budget for estimating the standard and actual approach of the finance.

  1. Explain the use of electronic spreadsheets in developing budgets and give two of their key features.

Answer

The electronic spreadsheet is helpful for developing a budget because it is helpful in calculating expenses, tracking the budget, conducting other numerical analyses, and cost estimating jobs. In the spreadsheet, we can change and analyze their effects. Its use is basically for calculating the financial data and numerical digits.

  1. List five ways to improve cash inflow and give examples.
Ways to improve cash inflows Example
1) Check the payable terms of your account N/40 means the purchaser must settle their account in 40 days.
2) Cut unnecessary spending Recycle the waste and stop unnecessary spending like a bowl of honey for cooking non-wage.
3) Stretch customer incentives and penalties Discounts, store credits
4) Study your cash flow patterns Payrolls, rent
5) Reflect invoice factoring Some amount is due for some time
  1. Identify and explain three types of financial statements and their purpose.

Answer

The type of financial statements are given below:

Financial statements Purpose
1) Balance sheet The balance sheet is prepared for maintaining the financial status of the business by recording the assets and liabilities of the company.
2) Income statements The income statements show the position of the financial performance of the company over time.
3) Cash flow statements The cash flow statement shows the cash transaction that what happened to the organization’s cash, how much expenditure is spent, and how much cash is received in accounting period.
  1. Describe the type of entity that is required to have financial reports audited.

Answer

It has two types of entity which are given below:

1) Disclosing entity

2) Registered scheme

  1. Explain three key principles relating to the management of a chart of accounts.

Answer

The key principle is:

1) credit the giver and debit the receiver

2) Credit income and gain and debit all expenses and loss

3) Credit what goes out and debit what comes in

  1. Explain the purpose of a profit and loss statement and give two of its key features.

Answer

The purpose of profit and loss statements are:

1) Companies’ expenditure and revenue for that accounting period

2) Shows where the company has profit and where the company got the loss

The key feature is:

1) Cost of goods sold

2) Revenue (Van Mourik, &KatsuoAsami, 2018)

  1. Explain the purpose of financial reporting procedures.

Answer

The purpose of the financial reporting document is to report the organization’s income, analyze the income and track those income and the financial health of the organization.(Cordery, et al., 2019)

  1. List the two common reporting cycle periods for financial reporting.

Answer

The reporting cycle period for the financial report is month and year so that company can compare its financial position.(Cordery, et al., 2019)

  1. For the listed accounting software, describe two key features and two functions of the accounting software.

Answer

Accounting software Features Functions
a.     Xero 1) Cloud-based

2) Care of payroll

3) It lets for various currencies

(Solihin,&Tugiantoro, 2021)

 

It saves the invoices data

Online payroll

(Agostino, & Kirman, 2019)

 

b.     MYOB 1) Scan and store receipts

2) Connect with your bank account
3) Bank feed transaction

(Solihin,&Tugiantoro, 2021)

 

It has traditional accounting methods

Make extensive report

(Agostino, & Kirman, 2019)

 

  1. Explain how each of the factors below impact on budget development.
Factors Impact
a.     growth or decline in economic conditions

The budget is very sensitive to economic conditions like an increase in direct tax automatically decreasing the disposable income of a person.

(Maisaroh, et al., 2019)

b.     human resource requirements The human resources impact is that it enhances the business’s modest advantages.
c.     new legislation or regulation

If the new legislation is implemented then the budget is also revised because of the new rules and regulations like the tax rates are changed and so on.

(Maisaroh, et al., 2019)

d.     organisational and management restructures It increases the cost of the firm and decreases the cost of the firm according to the restructuring type.
e.     organisational objectives

The organization’s objective has an impact on all budgets because the budget is prepared, how much cost will be expanded and how much profit will be earned is estimated by the budget and the objective.

(Maisaroh, et al., 2019)

f.      scope of the project If the project is changed then the budget will also change and change make cost.
g.     shift in market trends It can be harmful to the customer’s and vendors’ relationships.
h.     significant price movement for certain commodities or items The budget will be developed according to the new price shift and the cost of it is higher.
i.      supplier availability and cost The cost of quality is effectful for the budget, the quality of the product is affect the budget.
  1. Explain how each of the data below can assist in preparing a budget
Data How the data is useful for preparing a budget.
a.     competitor research

1) clear the role and responsibility of all employees

2) Provide efficiency

3) Accountability (Mannheimer, et al., 2019)

1) Enables the owner to distillate on cash flow

2) Increase revenues on investment

3) Reducing the cost

b.     customer or supplier research

Customer research is helpful in evaluating the complete result because the research is helpful to know your customers’ needs and satisfaction.

(Mannheimer, et al., 2019)

c.     declared commitments in areas of operation The commitments of the operation are giving way to what time the budget will be declared and in what way it could be in use.
d.     financial information from suppliers The financial budget is helpful in estimating the current budget.
e.     financial proposals from key stakeholders The financial proposal is helpful in what way the budget will be developed and implemented.
f.      income and expenditure for previous time periods The previous income and expenditure amount is helpful in estimating the current budget amount for the current year.
g.     departmental, event or project budgets The departmental budget information is helpful that what the department wants and how much cash for running the business.
h.     grant funding guidelines or limitations The fund is the most important source for preparing the budget, it is helpful in achieving the goal.
i.      performance information from previous periods The performance date help in improving that mistakes which is done by the company in the previous year.
  1. Explain the importance of each of the following budget preparation practices
Practice Importance
a.     management policies and procedures 1) clear the role and responsibility of all employees

2) Provide efficiency

3) Accountability

b.     organisational budget preparation guidelines 1) Enables the owner to distillate on cash flow

2) Increase revenues on investment

3) Reducing the cost

  1. Describe two techniques for making budget estimates.

Answer

techniques for making budget estimates are:

1) Parametric estimating method

2) Expert judgment method (Radhika,&Sadasivam, 2021)

  1. Explain the concept of budget deviation management.

Answer

The process of deviation describes the available funds for the specific project which varies from the agency’s original or standard budget.(Zhang, et al., 2019)

  1. Give three common reasons for deviations from budgets.

Answer

Three common reasons for deviations from budgets are:

1) Alteration in planned activity

2) Omission

3) The cost is more than the budget estimate(Zhang, et al., 2019)

Assessment Task 1:Checklist

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 2a
Question 2b
Question 2c
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12a
Question 12b
Question 12c
Question 13a
Question 13b
Question 13c
Question 13d
Question 13e
Question 13f
Question 13g
Question 13h
Question 13i
Question 14a
Question 14b
Question 14c
Question 14d
Question 14e
Question 14f
Question 14g
Question 14h
Question 14i
Question 15
Question 16
Question 17
Question 18
Task outcome: ¨  Satisfactory ¨  Not satisfactory
Assessor signature:
Assessor name:
Date:

Assessment Task 2: Budget planning project

Information for students

This task requires you, in the role of the Resort Manager for Blue Healer, to determine the scope and nature of all of the budgets that need to be prepared for Blue Healer and then to draft and finalise a marketing budget for the business.

You will need access to:

  • your learning resources and other information for reference
  • Marketing Budget Briefing Report template
  • Finance Policies and Procedures
  • accounting software
  • printer
  • space for a meeting
  • roleplay participants.

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.

  1. Carefully read the following scenario:

Blue Healer is a health resort and convention centre based in the Blue Mountains near Sydney which has been operating for 5 years. The resort, Blue Healer, is made up of five areas: catering, spa, meeting rooms accommodation, and administration.

Blue Healer is very popular due to its competitive pricing structure, quality service and state of the art facilities.

The resort was set up by Paul Byrnes, a burnt out consultant who wanted to provide a service for corporate executives to retreat from their business for at least a short time. Paul had a lot of networks and to date most of the business has been from Paul’s existing networks and word of mouth referrals.  The business has a functional web site.

Sales continue to increase but Paul wants to retire completely and step back from the business. Thus he has hired a Resort Manager to oversee the business (you). An important aspect of the business that he wants the Resort Manager to focus on is preparing and monitoring budgets.

Current staff include an Accounts and Administration Manager, Resort Supervisor, Housekeeping staff, receptionist and contract therapists.

Profit and loss reports show the status of the business’ financial health.

  1. Determine and confirm scope and nature of the budgets

In your new role, the first step you need to take is to the determine the scope and nature of all of the budgets that need to be prepared for Blue Healer.

Draft an email to send to Paul to find out this information. Ensure your email includes questions that will provide all of the information you need to know, as well as identifies internal data sources that you need to access.

Paul Byrnes (your assessor) will answer your email so that you are able to forget ahead with developing the required budgets.

Answer

EMAIL

To- Paul Byrnes

Subject- Getting information

Respected sir,

Good morning, sir, how are you? This mail is conducted for getting some information about the organization for preparing the budget. I want to know about the nature of the organization and the financial position of the organization for preparing the new budget. For preparing the current budget I want previous financial statements such as profit and loss statements and balance sheets of the previous year. Please give me the proper information about the previous finance strategy report, marketing report, and most important and how much workforce is conducted in the organization.

Are the policy and procedures being changed for the current year?

Is there needed for change in the budget and in which area changes are mostly required let me know so that I am taking the action or prepared the marketing budget?

Or if it is possible then I also want to know about the customer’s data and the competitor’s pricing policy for competition.

For ending this email thank you so much for giving me this opportunity, I hope I will get all information soon.

Thank you

Resort manager

  1. Develop a Marketing Budget Briefing Report

As per the response provided to you, you are to focus on developing a Marketing Budget Briefing Report.

Use Marketing Budget Briefing Report Template to develop your report.

Review profit and loss for previous financial years to identify amounts spent on marketing for the previous two financial years, as well as the information provided to you by Paul

Identify at least two sources of information on recommended marketing expenditure that could be used to inform the marketing budget.

In addition, identify external factors that could impact on the marketing budget. This means that you should conduct market research on trends within the industry in terms of growth and opportunities and the types of marketing that similar businesses are conducting.

Answer.

Marketing Budget Briefing Report

Summary

It is a health resort and convention center which is based in Sydney in the blue mountains and runs the business for the past five years, such as a spa, catering, and provide meeting rooms, and administration, as the resort manager it is my responsibility to know about the organization.

In the marketing expenditure report, we are getting some information regarding the marketing expenditure I will show you the difference between the previous year and the current year which are given in the marketing expenditure report of the center. In The previous year, the marketing expenditure is estimated for 2019-2020 to be $ 82000 but the actual expenditure is $ 92000. Which is high than the expecting.

Marketing expenditure

The expenditure conducted from 2017-2018 is & 7,07,795 and in 2018-2019 the expenditure incurred $ 8,16,875 which is higher than the previous year.(Pani, et al., 2019) The expenditure cost is high than the previous year which is not good for the center as the cost increases, the income decreases automatically.(Pani, et al., 2019)

Sources of information

The sources of information are given below:

1) Business magazines- It is helpful for getting information about the organization, about their policies and procedures and it also gives information about companies plan and important information.

2) Current customers- Customers are vital for all businesses to get their products, and their satisfaction so that the organization knows about their product’s reputation and qualities.

External factors

1) Social and cultural factors- the social culture of the organization is a lifestyle, and customs that characterize a society, and the social factors prejudiced the welfare of the health care center.

2)  Economic environment- the economic environment also plays a vital role in achieving the goal because these factors include taxes, demand, supply of products, inflation, taxes, and recession this factor indicates the spending power for products.(Tran, & Nguyen, 2019)

These are the external factor that could be impactful on the marketing budget. The growth of the business can be increased by developing new technologies in the center. The trends in the spa which been developed in the current year for improving the health care resort, such as crystal healing therapies, forest bathing, goat yoga, and all. (Tran, & Nguyen, 2019)as we know this health care center has very good pricing policies. These trends are helping in improving health care services and attracting new customers from all over the world.

  1. Send an email to the CEO and Accounts and Administration Manager (your assessor)

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Attach your Marketing Budget Briefing Report to the email.

Ask for input on your Marketing Budget Briefing Report. The CEO and Accounts and Administration Manager (your assessor) will provide you with feedback for input into your budget.

Answer

EMAIL

To- CEO, Accountant, and Administration manager

Subject

Respected sir,

This email is written to inform you about the marketing budget report which is developed by the health care center. In the marketing expenditure report, we are getting some information regarding the marketing expenditure I will show you the difference between the previous year and the current year which are given in the marketing expenditure report of the center. In The previous year, the marketing expenditure is estimated for 2019-2020 to be $ 82000 but the actual expenditure is $ 92000. Which is high than the expecting.

In this report, we also mention the external factors which are useful for our health care center, for enhancing the profit. The source of the information also provides me with the marketing budgeting project. I put my all efforts into this project. I will attach the marketing budget briefing report so that you know about that, and give us feedback, so we could proceed for the implementation of the budget.

Thank you

Resort Manager

  1. Draft Marketing Budget

You are required to draft a Marketing Budget based on your Marketing Briefing Report and the input provided from the CEO and Accounts and Administration Manager (your assessor).

To develop the Marketing Budget, you should use the accounting software used by your RTO.

Save this document as a draft Marketing Budget and send it via email to the CEO and Accounts and Administration Manager (your assessor).Your email should clearly outline the options for marketing expenditure as per your marketing budget, as well as your recommendations for the budget.

You will discuss your draft budget at a meeting with the CEO and Senior Managers. Your assessor will advise you of the date of the meeting.

Answer

EMAIL

To- CEO, Account and Administration manager

Subject- Marketing budget

Respected sir,

This mail is written to inform you about the marketing budget expenditures, as you know that this budget is estimated by the blue healer health center’s owner Paul Byrnes, which is run the business for over five years and now wants to retire from the business so that he appoints me as the Resort Manager, and according to my post I am developing the budget for the current year, so I make the budgeting expenditure budget which is sent by me to you in the previous email. In this email, I will send you the marketing expenditure budget attachment which explains the position of the expenditure budget.

In this budget, the actual expenditure incurred is 1,16,500 and the expecting expenditure is $ 96,500. This difference is very much, which is not good, it reduces our revenue income. According to me, there is a recommendation for the budget which is important that is:

Prepare separate fixed and variable expenses, set the budget expectation, and review the budget. Look at that budget and let us know what recommendation is useful according to you all.

Thank you

Resort manager

  1. Participate in a budget meeting.

The next part of the assessment requires you to participate in a meeting with the CEO (role-played by your assessor) and the Accounts and Administration Manager (role-played by another student to discuss the marketing budget. At the meeting, the CEO will attempt to negotiate another option for the budget. You are required to demonstrate your negotiation skills to persuade the meeting participants that your budget is the best option.

At the meeting, you will need to:

·           Explain the marketing budget you have developed and the various options.

·           Seek input on the budget.

·           Negotiate for your budget as presented.

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

Resort Manager- Good morning all of you, how are you all

CEO, Administration manager – Give us your introduction

Resort Manager- I am the new Resort manager and my job role is to monitor the budget and make changes if needed.

CEO, Administration manager – ok, that is great, introduced with your budget.

Resort Manager- Yes, sure according to me first of all collect all previous information from all budgets such as sales budgets, purchase budgets, expenditure budgets, financial budgets,

Fixed cost and all, then prepare the standard budget.

CEO, Administration manager – ok but as a CEO of the company, there are lots of ways to maintain and prepare the budget by calculating the net income, and tracking the spending. Used zero-based budget, pay-yourself-first budget.

Resort Manager- That is good but my budget is more effective than yours.

CEO, Administration manager –How?

Resort Manager- Because my budget is flexible, it also supports the management, my budget is coordinated, and the estimation of the budget is right and suitable for the current situation.

CEO, Administration manager – But the process of your budget is a lengthy instance of mine.

Resort Manager- NO, the process of my budget is lengthy but it is very effective to improve the previous budget of the center.

CEO, Administration manager – Your expenditure is more than mine, there is no need for that much expenditure.

Resort Manager- It is needed because if we want that the customer like our services then we have to change our old strategy and the accommodation style and it would take cost which is long term investment.

CEO, Administration manager – But Zero-based accounting is easy than it is based on funding, in this budgeting no item is added automatically.

Resort Manager- My budget is Advertisement, sponsored web content, SEM PPC, and social ads are also developed which attract the shareholder and more investors Zero budget is for allocating the debts payments and the money expenses.

  1. Revise the marketing budget

Following the meeting, revise your marketing budget to incorporate feedback from the CEO and Accounts and Administration Manager.

You are to revise your marketing budget and send it out as Final Marketing Budget within 2 days of holding the meeting. You will be assessed on meeting this timeline.

Save this document as Final Marketing Budget and send it out via email to the CEO and Senior Managers.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment.

Answer

To- CEO, Senior Manager

Subject- Final marketing budget

Respected sir,

This mail is conducted for informing you about the final budget which is changed according to your feedback sir. The Budget is revised, in the revised budget, we change some figures in the budget for estimating the expenditure and the income, I am attaching that budget changes.

This is the revised budget for the marketing, I hope this change is right, if it has been mistaken then let us know so we take action on that.

Thank you

Resort Manager

  1. Meet with colleagues to discuss the marketing budget.

The final part of the assessment requires you to meet with colleagues to confirm the Marketing Budget for the year.

You are also required to introduce the team to the company’s Finance Policies and Procedures. This is to ensure that they understand financial management responsibilities and reporting arrangements so that the marketing budget can be accurately implemented and monitored.

These requirements form part of the company’s requirements for finalising budgets.

At the meeting, you will need to:

·           Discuss the overall budget allocation for marketing

·           Discuss the amounts allocated to each marketing activity

·           Provide an outline of the Finance Policies and Procedures.

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.

·           Using active listening techniques to confirm understanding.

Answer

Meeting

Resort manager- good morning all of you, how are you? I hope you all are doing well in your job.

Team- Very good morning, sir, we all are good and doing good thank you, how are you, sir?

Resort manager- I am also good, now we are focusing on our topic which is the marketing budget of the company which is allocated by the Finance manager and it is the final budget.

Team- ok sir, so what budget is allocated to what area.

Resort manager- The total amount for the marketing budget for the current year is $ 1,30000 and the community sponsorship is $ 1000 in July, radio advertisement is for $ 1500, the exclamation expenditure is for $ 3500, the budget is provided by us, we are attaching the marketing budget.

Team- ok sir what is the new fiscal policy and procedure for the budget?

Resort manager- The finance policy and procedures are allocated by the post like the financial manager develops the financial statements and balance sheets, cost allocation, Credit used, and data management this is financial policies, and I am, as the Resort manager, it is my duty to monitor the budget activities.

Team- Ok sir.

Resort manager- I hope you all are getting my point and understand the budget and the finance policies.

Team- yes sir, thank you sir for giving us such information.

Resort manger- Thank you all for attending the meeting.

 

Assessment Task 2: Checklist

Student’s name:
Did the student: Completed successfully? Comments
Yes No
Determine and confirm the scope and nature of required budgets for Blue Healer?
Access and interpret profit and loss statements to inform budget preparation?
Identify and access relevant external data sources to inform budget preparation?
Analyse internal and external factors for potential impact on budget?
Provide the Marketing Budget Briefing Report to colleagues to enable them to contribute to the budget process?.
Draft the budget based on all information provided and researched?
Estimate income and expenditure for marketing based on valid, reliable and relevant information researched?
Reflect objectives for the marketing budget within the draft budget?
Determine options and recommendations for the marketing budget and present this information within the draft marketing budget?
Provide draft budget to colleagues and managers?
Discuss the budget with the team?
Negotiate the budget in a meeting according to the company’s policy and procedures for finalising budgets?
During the meeting to discuss budgets and financial policies and procedures, 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

·           Using active listening techniques to confirm understanding

Agree on modifications to the budget and update budget accordingly?
Provide final budget in a clear format and within the required timelines?
Provide information to team members to follow required financial procedures?
Task outcome: ¨  Satisfactory ¨  Not satisfactory
Assessor signature:
Assessor name:
Date:

Assessment Task 3: Budget monitoring and review project

Information for students

In this task,you must review budget figures, action deviations and report on these as part of monitoring and review processes.

You will need access to:

  • your learning resources and other information for reference
  • Marketing Expenditure Report
  • Marketing Budget Analysis and Recommendations Report

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.

  1. Carefully read the following scenario:

Assume it is twelve months later and you are reviewing the marketing budget against actual amounts using the Marketing Expenditure Report.

Note: that the company deems a standard variance in budgets of up to 5% acceptable.

You have also been recently informed that a competitor has set up a resort in the nearby area and you are required to assess how this will impact the marketing budget for the following year.

  1. Develop a Marketing Budget Analysis and Recommendations Report

Review the marketing budget expenditure to assess actual performance against estimated performance.

Based on your review and using the accounting software, prepare a report that shows actual expenditure against budgeted expenditure. Include graphs to make your report clear.

Save this report as Marketing Performance Budget Report.

Prepare an accompanying report, Marketing Budget Analysis and Recommendations Report, that analyses:

·           Projected budget and actual budget

·           Deviations from the budget

·           Reasons for deviations

·           Recommendations for next year’s budget based on marketing performance and new competitor.

Use the Marketing Budget Analysis and Recommendations Template to guide your work.

Answer

Marketing Budget Analysis and Recommendations Report

Introduction

The purpose of the report is to estimate the estimated and actual performance of the marketing budget. In this report, we are discussing the performance of the budget.The total amount for the marketing budget for the current year is $ 1,30000 and the community sponsorship is $ 1000 in July, radio advertisement is for $ 1500, the exclamation expenditure is for $ 3500, and the budget is provided by us, we are attaching the marketing budget.

Marketing Budget Information

The budget is estimated during 2019-2020 to be $96,500 but the actual and final budget is $ 130000, in the marketing report we are discussing the external factors of the company which are very important and impactful factors on budget. In the marketing budget, community sponsorship is $ 1000 in July, radio advertisement is for $ 1500, the exclamation expenditure is for $ 3500, and so on expenditure which is important to conduct. The graph is attached below:

Deviations

The deviation is the process in which funds are available for a specific project which is different from the predetermined budget. The master budget represents the policy of the business, and it is applicable for all that budget which have differences in actual and standard budgets.

Deviation reasons

1) Error in figures

2) planned activity not same as occur

3) Changes in planned activity

4) Cost high the budget

Recommendations

The recommendation for the new budget is to reduce the cost and develop the right budget and maintain the cost so that the cost expands the same and aim to strengthen the infrastructure.

As the previous budget marketing performance is affected also, and as we know that our new competitor open resort nearby us, so that the competition is high now.

1) Separate fixed and variable

2) Set the truthful budget expectation

  1. Send an email to management

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachments.

Attach the following to your email:

·           Marketing Budget Performance Report

·           Marketing Budget Report Analysis and Recommendations

Answer

Email to Management

To- Management

Attachment- Marketing Budget analysis and recommendation report, Marketing Budget      Report

Subject- introduce the performance report and recommendation

Respected sir,

This email is written to inform you about the marketing budget performance report which can be very helpful to identify the actual performance of the business and what cost is expended actually and what cost is predetermined, and I have also attached the marketing budget report analysis and recommendation for the next budget so we are not doing the same mistakes in next year.

Kindly look at the reports and give your feedback response, so we continue our process.

Thank you

Resort manager

Assessment Task 3: Checklist

Student’s name:
Did the student: Completed successfully? Comments
Yes No
Assess actual performance against estimated performance and prepare accurate financial reports?
Include financial commitments relevant to marketing into the marketing budget and all marketing budget reports?
Investigate and take appropriate action on significant deviations to the marketing budget?
Analyse changes in internal and external environment and make necessary adjustments?
Collect and record relevant information to assist in future budget preparation for marketing?
Task outcome: ¨  Satisfactory ¨  Not satisfactory
Assessor signature:
Assessor name:
Date:

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 Written questions S U DNS
Assessment Task 2 Budget planning project S U DNS
Assessment Task 3 Budget monitoring and review 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

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Dowson, R., & Bassett, D. (2018). Event planning and management: Principles, planning and practice. Kogan Page Publishers.

Gegedyush, N. S. (2022). Modern Approaches to the Management of State Programs in the Context of Increasing the Effectiveness and Efficiency of Budget Expenditures. RUDN Journal of Public Administration9(2), 162-171.

Maisaroh, S., PH, S., &Hadi, S. (2019). The Budget Planning Determinant Factors at State Primary Schools in Yogyakarta Province. International journal of instruction12(2), 353-368.

Mannheimer, S., Pienta, A., Kirilova, D., Elman, C., &Wutich, A. (2019). Qualitative data sharing: Data repositories and academic libraries as key partners in addressing challenges. American Behavioral Scientist63(5), 643-664.

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Pani, A., Sahu, P. K., & Majumdar, B. B. (2019). Expenditure-based segmentation of freight travel markets: Identifying the determinants of freight transport expenditure for developing marketing strategies. Research in Transportation Business & Management33, 100437.

Perera, A. S. P., &Ariyarathne, S. P. (2020). Reasons for the deviation in the Final Pre-Production Completion in Apparel Industry: Case Study. In Proceedings of International Conference on Business Management (Vol. 17). R.

Radhika, E. G., &Sadasivam, G. S. (2021). Budget optimized dynamic virtual machine provisioning in hybrid cloud using fuzzy analytic hierarchy process. Expert Systems with Applications183, 115398.

Solihin, S., &Tugiantoro, T. (2021). Influence of Accounting Software Quality Dimensions on Intentions to Use of SME’s in South Tangerang. JurnalMantik5(3), 2033-2038.

Tran, T., & Nguyen, N. (2019). Identify factors affecting business efficiency of small and medium enterprises (SMEs): Evidence from Vietnam. Management Science Letters9(12), 1987-1998.

Van Mourik, C., &KatsuoAsami, Y. (2018). Articulation, profit or loss and OCI in the IASB conceptual framework: Different shades of clean (or dirty) surplus. Accounting in Europe15(2), 167-192.

Zhang, J., Kang, Z., & Yu, Y. (2019). Informationized Management of Deviation between Budget and Final Account in China’s Universities.

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