Assessment 1

Part A: Report

Knowing the right data for better analysis, from the last 2 years the café is running, the income that was in 2018 is 245000 and the expenses are 145000.

The following factors are needed to prepare the budget.

Net income

There is a need of calculating the net income so that the budget could prepare accordingly and without knowing the actual income it will not possible to make the budget that is why net income is necessary to take under consideration while making the budget.

Checks spending:

After the calculation of the net income, it’s time to check the spending and the spending plays a vital role as it is being done on need or want can change the overall path of the objective.

Set goals:

The goals which are being made are important and near with far goals are required but the most important thing in this is to make sure that the goal which is being set has to be practical and real too so that there will be no type of confusion among anyone.

Prepare a plan:

the plan must consist of what we can do and what kind of things we can do and also manage the risk, and the budget. Also to consider the breakdown of things. All the plans which are being made must be effective and practical.

Implement the new budget and check it regularly:

Track the money and the efficiency of the plan is the first thing to check and it is very important to do so to avoid any kind of risk which are potential could be avoided.

Monthly income and expenditure

The two years of information have been analyzed and already have talked about the year 2017 which has a net profit of 105000$  and comparatively in 2018 it boosted to 245000 and which is very impressive as the results are very good. And on other hand, the expenses are as in the first year it was 42000$ and in total 79500 and 2018 it is 58000$ and the overall expenses calculated based on everything 42000$ and the total is 79500$. It’s too much and need to focus on it.

Organizational objectives reflect in the budget

The objective of any organization plays a vital role as it helps in making the employee understand and it will lead to better results for the firm’s growth.

Internal and external factors

Internal and external factors are very important as they affect the budget in many ways both internal and external factors are needed to be checked thoroughly to make the best plan out of the available things.

Motivation: motivated employees can do the best work in comparison to those who are not that motivated it is important to make sure that every employee is motivated.

Complex policy: if the policies are complex then it will lead to fewer implications and effects as they will become harder to follow and it will lead to failure.

Government policy: in many cases the policies that are developed by the government cause trouble in making the budget and differences have been observed.

Competitions: competitors also affect budgeting from any point of view as it is directly proportional to the current plan and if the competitors launch their plan the return action gets must do so it became important to consider it while making ng budget.

Consult with people on budget planning

It becomes very difficult to make the right budget plan without consulting the necessary people in it such as the stakeholders and the different users, experts of the field along with the professionals dedicated team of finance and after that, the plan will be risk proof (Bakhshi, & Touran, 2014).

Part B: Budget draft

VIT café projected sales budget for 2018
MONTHS
January	$70,000
February	$35,000
March	$38,000
April	$28,000
May	$30,000
June	$32,000
July	$23,000
August	$30,000
September	$32,000
October	$36,000
November	$30,000
December	$75000
Total income	$4,50,000
fewer COGS (COST OF GOOD SOLD)	$1,10,000
= GROSS PROFIT	$340,000
VIT café projected annual expenses budget for 2018
Wages	$80,000
Permits/licenses	$1,700
Rent	$20,000
Insurance	$2,500
Marketing/website	$3000
Electricity	$4000
Gas	$4000
Water	$2000
Rates	$4000
Phone	$3500
Internet	$2200
Cleaning	$2200
Other expenses	$55000
Total expenses	$184100
Net profit	$129100

C: Analyse and negotiate

 In 2017, there are a few issues related to the budget.

Blown budget

Company has less turnover exact figure is 7000 this is because of the low sales

Internal and external factors

The internal factors which have affected it are the employee’s performance and it has been observed that the employee’s performance matters a lot in achieving anything.

Motivation: employees do better when the right kind of motivation will provide to them so that they can work with their will and not with intention of just finishing their work casually.

Complex policy: policies must be simple so that there is no tension among the employee regarding it and they can do the work freely.

Government policy: it has been observed that the different government policies sometimes affect the overall work.

Competitions: in many cases, the budgeting gets disturbed by the competitors.

Factors that affect budgetary requirements

The below mention factors are some of the most common factors which could affect the process of budgeting.

The contingency of budget:

The contingency plan help in the worst situation so having it is very important

Negotiate

The higher authorities will be involved in this so that they can handle it in a much better way.

Importance of Negotiate

It is very important to negotiate as this will help in making different budgeting etc.

Policies and procedure

Superior will set the targets, send them to subordinates, and different meetings will be held for the subordinates for an action plan (Becker, 2019).

Assessment 2

The new budget will include

Wages rise by 5%

Sales increased by 12%

Expenses increase by 2%

COGS increase by 3%

Part A: Present Budget Draft

Roleplay

Me: good morning!

Owner: good morning!

Me: sir after analyzing the budget thoroughly I have come up with this revised budget which is much better in every manner and this will do the required fixation which is required can I present it to you?

Owner: yes

Me: so then this is how it is.

Owner: accepted a good job by the way.

Me: sir I have checked it from every perspective and this time it is your fault free and you can contribute to it by providing the necessary feedback on it.

Owner: I have also checked it thoroughly and this indeed looks promising please do the same as suggested as it will bring the right response for the growth of the company.

Me: thank you so much for your positive feedback.

Owner: but please do some necessary changes to make it more refined that’s all.

Me: yes sir I will make sure to do that don’t you worry.

Owner: ok good job.

VIT café projected sales budget 2018
MONTHS
January	$70,000
February	$35,000
March	$38,000
April	$28,000
May	$30,000
June	$32,000
July	$23,000
August	$30,000
September	$32,000
October	$36,000
November	$30,000
December	$75000
Total income	$4,50,000
less COGS (COST OF GOOD SOLD)	$1,10,000
= GROSS PROFIT	$340,000
VIT café projected annual expenses budget for 2018
Wages	$80,000
Permits/licenses	$1,700
Rent	$20,000
Insurance	$2,500
Marketing/website	$3000
Electricity	$4000
Gas	$4000
Water	$2000
Rates	$4000
Phone	$3500
Internet	$2200
Cleaning	$2200
Other expenses	$55000
Total expenses	$184100
Net profit	$129100

Part B: Report on Final Budget

 The meeting was a success and the owner was happy with the meeting too necessary changes have been addressed and the overall plan was good not only that the funds are also allocated for the same.

This is to inform you about that the all necessary changes and the next step that has to is to implement the method in a much more appealing manner so that it performs well.

Funds will be allocated as per the departments. And each and every department has to monitor it well, and the necessary and authorized people will know about it.

We already have done thorough research and understood all the requirements of it and this is done by means of different mediums such as face-to-face meetings etc.

And more than that it is very important to make sure that there all requirements must get fulfilled so that they like the service and the overall desired goal can be accomplished by it.

We can show our presence through different mediums such as online websites, emails, and social events. Making the record or allocation of resources, knowing the scope, identification of the resource, tracking the timing (COVID, 2020).

 Final budget

VIT café projected sales budget 2018
MONTHS
January	$70,000
February	$35,000
March	$38,000
April	$28,000
May	$30,000
June	$32,000
July	$23,000
August	$30,000
September	$30,000
October	$36,000
November	$30,000
December	$69000
Total income	$451000
less COGS (COST OF GOOD SOLD)	$1,10,000
= GROSS PROFIT	$340,000
VIT café projected annual expenses budget for 2018
Wages	$85,000
Permits/licenses	$1,700
Rent	$20,000
Insurance	$2,500
Marketing/website	$3000
Electricity	$4500
Gas	$4000
Water	$2000
Rates	$4000
Phone	$3500
Internet	$3000
Cleaning	$2200
Other expenses	$55000
Total expenses	$190400
Net profit	$135400

Assessment 3

Review operational and profit, loss

INCOME	BUDGET	ACTUAL	VARIANCE	Year 4 BUDGET	Year 5 BUDGET
SALES	$     5600000	$    480000	$ 5120000	$ 552000	$ 576000
STOCK COSTS	$     160000	$     182000	$ 22000	$ 209300	$ 218400
GROSS PROFIT	$ 5089800	($ 129270)	$ 454300	$ 266456	$ 278040
EXPENSES
LOAN REPAYMENTS	$	$
LABOUR COSTS	$     125000	$      160000	($ 35000)	$ 184000	$ 192000
RATES	$     3000	$      2500	$ 500	$ 2875	$ 3000
RENT	$     25000	$      25000	$ 0	$ 27500	$ 30000
GAS	$     2000	$      2200	$ 0	$ 2530	$ 2640
ELECTRICITY	$     2400	$      2900	($ 500)	$ 3,335	$ 3480
WATER	$     1200	$      1500	($ 300)	$ 1725	$ 1800
INSURANCE	$     4000	$      3800	$ 200	$ 4370	$ 4560
PHONE	$     1200	$      1500	($ 300)	$ 1725	$ 1800
CLEANING	$     1000	$      1200	($ 200)	$ 1380	$ 1440
PEST CONTROL	$     400	$       600	($ 200)	$ 690	$ 720
ADVERTISING	$     5000	$      8000	($ 3000)	$ 9200	$ 9600
LICENSES	$     2500	$      2500	$ 0	$ 2875	$ 3000
RUBBISH	$     1800	$      1850	($ 50)	$ 2127	$ 2220
GREASE TRAPS	$     600	$      1600	($ 1000)	$ 1840	$ 1920
TOTAL EXPENSES	$ 175,100	$ 215150	($ 40050)	$ 247422	$ 258180
NET PROFIT	$ 5264900	$ 82850	$ 49,4150	$ 513878	$ 536220

Question 3

The most common reason behind the unsatisfactory result in year 3 in trading against budget are as follow:

• 1 Omission
• 2 Lack of planning resulted in unsatisfactory outcomes.
• 3 Lacking in the knowledge part

4 Knowledge regarding the budget is very poor  (Yu, 2017).

Question 4

The most common reason behind the high wages in year 3 are as follows:

As their work is going beyond their capacity and the necessary hirings have made which have resulted in too much spending of capital and the two most common reason which are getting out the form it are as –

1 New hiring which is done.

2 Too much work

Question 5

The increased 10 % rent was very high and sudden and just next year there is another increment of 10 % in the rent which has not affected that much as comparatively the sale done is much more than that  (Paptsov, & Bondarenko, 2019).

Assessment 4

Written Assessment

Trainee Name
Trainee ID Number
Trainer/ Assessor Name
Submission Attempt	Attempt 1 – ☐	Attempt 2 – ☐	Attempt 3 – ☐

 Trainee Declaration:

“I hereby certify that:

• This assessment is my work based on my personal study/research, in my own words.
• I have cited all sources and material used to assist my research for this assessment.
• I have not copied or plagiarized any part of this assessment from another student.
• I or any other student has not submitted this assessment previously.
• I have kept a copy for my records.
• I am aware of the availability of reassessment consistent with the Institute’s Reassessment Policy.
• I understand my right to appeal the assessment or reassessment outcome, as per the Institute’s Complaints and Appeals Policy.

Trainee Initials	Date

1	Define the following Budgeting Terms: Zero-based budgeting
This is the type of budgeting in which budget history and necessity take under consideration while planning the budget (Bakhshi, & Touran, 2014).
2	Top-Down Budgeting
It is a type of budgeting that is allocated to the senior authorities in a firm and the responsibility of completing the goal and task depends on them.
3	Rolling Budget
It is a type of budget in which continuous budgeting is done and the necessary required changes have been introduced to it.
4		Variance
Variance is a measurable and visible change that can be used to check the difference between two data.
5	Cash Budget
A cash budget is a budget that has been made for an organization on which to work accordingly so that nothing goes unexpectedly (Becker, 2019).

6		Cash flow budgets
It is the budgeting for a particular time such as weekly to ensure that there is enough capital to run the business.
7		The whole organization on budgets, departmental budgets
The accurate calculation of financial budgets and the operational budget of all kinds is known as the organization budgets and departmental budgets (COVID, 2020).
8		Event budgets, project budgets
The overall calculation which includes everything in it regarding the items and equipment going to be used in it is included in the event budgets and project budgets.
9		Purchasing budgets
This is the amount which has been used to calculate the all capital will require for buying the stuff in the given period.
10		Sales budgets
The amount which is gathered by the company or the amount that it can gather can be considered the sales budget (Yu, 2017).
11		Wage budgets
This is the amount of capital that also depends on the headcount at the workplace for the job which has been delivered by the employee or staff.
12	Explain the role and the purpose of a budget and who would you need assistance from.
Budgeting helps in many ways as it can provide a map for the work and the necessary decisions which are required for an organization to work smoothly.
13 Describe the following 4 different types of budgets and their purposes. REVENUE BUDGETS This is to track the path from which the government revenue is coming such as the different applied taxes and all.
EXPENSE BUDGETS This is the budget which includes the overall expenditure which has been done in the project in proportion to both plan and non-plan work. Also shows the distribution of the ministries.
CASH BUDGETS This is the accurate calculation of capital that is required for the proper functioning of an organization.
CAPITAL EXPENDITURE BUDGETS This is the budget report of the expenses that an organization does which are necessary for the growth of the organization to achieve its main objective.

14	Describe 6 main pieces of information you will need to prepare a project budget
1 contracts 2 project schedule 3 basis of estimates 4 resources and the calendars 5 scope and the baseline. 6 activities cost estimation.

15	What is performance reporting? Why is this an important part of the budgeting process?
Performance reporting is a part of project management in which the senior members of the work check the overall progress of the project and convey this message to the stakeholders that’s why it is an important part of the budgeting process  (Paptsov, & Bondarenko, 2019).
16	Describe 4 different reporting cycles that impact budget and cash-flow
The four cycles that impact budget and cash flow are as follows: 1 preparation 2 approval 3 execution 4 audit and evaluation
17	List 2 different computerized accounting packages available for the Hospitality Sector.
The two computerized accounting packages available for the hospitality sector are as follows: 1 FreshBooks 2 Oracle NetSuite ERP

18	Describe how accounting software programs can help prepare and monitor your budgets
Accounting software provides multiple features that help in preparing and monitoring the budget such as 1 it generates reports, 2 having transaction records.

19	List and describe 3-4 potential external factors that should be taken into consideration when planning and preparing a budget.
Some of the most potential external factors which can change budget planning are as follows: 1 market condition 2 legislative changes 3 long-term business goals.

20	List 6 internal factors you could analyze whilst preparing your Budget. Briefly state how they might impact your budget planning.
The internal factors that could impact the preparation of budgeting. 1 revenue 2 expenditure 3 market condition 4 policy changes 5 unexpected incidents 6 human resource 7 incentive bonuses  (Nikitina, et al, 2018).

21	Describe the 7 steps involved with the budgetary planning process for a large company
The seven steps which are involved in the budgetary planning process are as follows 1 making realistic goals 2 know the right source of income and the expenses 3 making sure to distinguish between need and want 4 making separate budget 5 action plan change 6 season-based change 7 looking ahead for better chances of risk analysis.

22	Describe how each of the following Internal and external factors impacts budget development.
Growth or decline in economic conditions This is the basic indication that provides information about the expansion and also about the prosperity.
Human resource requirements Each and everyone is having different skills which together are required to accomplish a major objective of any firm that’s why different brains are required
New legislation or regulation These are made by human resources for better work efficiency and quality of work that’s why the rules and regulations are required in any organization.
Organizational and management restructure This is for the betterment of the workplace so that the necessary weakness and the risk could be avoided and the new structure will lead to the growth of the firm.
Organizational objectives The objective of any organization provides a clear perspective to its staff members who are working at the place so that they can move in the right direction and can contribute to the growth of the organization.
The shift in market trends rends This refers to the change in the way of purchasing by the consumer which leads to the involvement of different strategies and works to attract the customers.
Significant price movement for certain commodities or items The necessary different rules and regulations in the fundamentals contribute to change in demand.
Supplier availability and Cost The basic ratio between a particular time and number represents the availability and cost.
23	Describe where you would find the following data and how it impacts budget preparation.
Competitor research This is how competitors are being identified and the evaluation of the weaknesses and the strengths of the services.
Customer or supplier research This is based on the requirement and the identification of customers and suppliers.
Declared commitments in areas of operation In this part, there is a requirement to ask the suppliers and the people about the commitment from every department.
Financial information from suppliers This includes the overall revenue of the process.
Financial proposals from key Stakeholders In this, both long and short-term vision for the firm has been required from the key stakeholders.
Income and expenditure for previous periods While setting the estimation of the budget in the given time frame.
Departmental event or project budgets The profit and loss budget of every department is based on the events that are performed.

Grant funding guidelines or limitations To do anything there is a requirement for capital and there is a need for policy regarding the funding so that it does not affect in long term.
Management policies and procedures These are the basic requirement at the workplace for managing the overall performance of the staff at a place so that better results could be produced.
Organizational budget preparation guidelines This includes the overall goals, with the mission and vision of the firm also knowing the expenses and stuff.
Performance information from previous periods This includes the profit margin and the overall scope of the project.
24	What is Regression analysis?
This is the method in which differences between two variables have been identified.
25	Outline 9 different expenditure and revenue items that are relevant to budgeting and forecasting.
This includes the different areas of revenue such as sales and the number of units which has been delivered. The other item which is being included is staff by positions, travel, fees for training, and meeting expenses (Fernandez-Cortez, et al., 2020).
26	It is not always appropriate to base sales forecasts on current sales trends. State 3 examples of factors besides overall demand for your product that could impact sales in the future.
1 marketing spent 2 allocation of budget 3 terms and conditions depending on economic
27	Describe and compare the following forecasting techniques
Time series forecast Based on the past analysis it can predict the future.
The Delphi Method Based on the group opinion in decision making.
Executive Opinions Forecasting This refers to the best assumption for estimating the
28	List 3 common features and assumptions that are inherent in forecasting, regardless of the method used.
1 Making sure to do the involvement in the future event 2 using the forecasting technique for the growth of the organization. 3 To do it on behalf of the past and present event that has occurred (Manomenidis, et al., 2017).

References

Bakhshi, P., & Touran, A. (2014). An overview of budget contingency calculation methods in the construction industry. Procedia Engineering, 85, 52-60.

Becker, P. (2019). A new budget for the EU: negotiations on the multiannual financial framework 2021-2027.

COVID, W. (2020). Update. Institute of Epidemiology, Disease Control and Research (ICR).

Daryanto, W. M., & Primadona, A. (2018). Capital budgeting model and sensitivity analysis of the conventional oil Production Sharing Contract (PSC) fiscal systems: empirical evidence from Indonesia. International Journal of Engineering & Technology, 7(3.21), 5-9.

Fernandez-Cortez, V., Valle-Cruz, D., & Gil-Garcia, J. R. (2020, April). Can artificial intelligence help optimize the public budgeting process? Lessons about smartness and public value from the Mexican federal government. In 2020 Seventh International Conference on EDemocracy & EGovernment (ICEDEG) (pp. 312-315). IEEE.

Ganegoda, D. B., Latham, G. P., & Folger, R. (2016). The effect of a consciously set and a primed goal on fair behavior. Human Resource Management, 55(5), 789-807.. The effect of a consciously set and a primed goal on fair behavior. Human Resource Management, 55(5), 789-807.

Manomenidis, G., Panagopoulou, E., & Montgomery, A. (2019). Resilience in nursing: The role of internal and external factors. Journal of nursing management, 27(1), 172-178.

Nikitina, O. A., Litovskaya, Y. V., & Ponomareva, O. S. (2018). Development of the cost management mechanism for metal products manufacturing based on budgeting method. Academy of Strategic Management Journal, 17(5), 1-17.

Paptsov, A. G., & Bondarenko, L. V. (2019). Russian rural areas: typology and initiative budgeting. International Journal of Engineering and Advanced Technology, 9(1), 5047-5053.

Yu, D. (2017). The comparability of Income and Expenditure Surveys 1995, 2000 and 2005/2006.