Part A: SITXFIN003 Manage Finances Within a Budget AT 1
Q1
When you own or operate a business it important to understand what your revenue and expenses are. List eight financial records that will provide you with this information
Q2
| How much I am paying my staff | |
| Items purchased using a credit card | |
| Amount paid to my suppliers | |
| Cash flow through the business via deposits and withdrawals |
Q3
There are many different types of budgets to suit the different types of business operations. List the eight types of budgets you could use.
Q4
Operational/departmental budgets are generally short-term budgets which forecast revenue and/or expenses. List four documents that will help give you a clear understanding of where your business is at this moment in time. Explain using examples
Trainer Comments
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Q5
What is a cash flow budget and what is it used for?
Trainer Comments
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Q6
Most financial and statistical reports focus on key areas of the business; sales, revenue, expenses and performance. The information provided varies based on the type of report, its focus and who it will be distributed to.
In the tables below list 3 examples for each.
| Weekly budget performance report for a kitchen |
| Monthly sales analysis report for a Function centre |
Trainer Comments
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Q7
What are the four main reasons budget deviations occur?
Trainer Comments
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Q8
What factors do you need to consider when deciding whether a budget deviation should be investigated further?
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Trainer Comments
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Q9
List four options you might consider to help manage budget deviations effectively.
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Trainer Comments
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Q10
What is a budget and how does it help a business achieve its goals? Describe its definition and purpose
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Trainer Comments
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Q11
What is the difference between a fixed (static) and flexible (variable) budget?
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Trainer Commens
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Q12
What are the formulas used to calculate a budget variance and a budget variance percentage?
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Trainer Comments
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Q13
Check the figures in the sales budget below. Which department’s figures have been calculated correctly? Apply your understanding of how brackets are used to represent positive and negative variances when checking the figures for accuracy.
| Sales | Actual $ | Budget $ | Variance $ | % |
| Bistro | 35,000 | 45,000 | (10,000) | (22.22) |
| Public bar meals | 9,000 | 8,000 | 1,000 | 12.25 |
| Club bar meals | 8,000 | 9,000 | 1,000 | (11.11) |
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Trainer Comments
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Q14
Indicate if the following budget results are a favourable or unfavourable result.
| Actual income is above budget | |
| Actual income is below budget | |
| Expenses are above budget | |
| Expenses are below budget |
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Trainer Comments
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Q15
What information might you need to include when preparing a statistical or financial report for your supervisors in a suburban hotel which has multiple departments? List five examples.
Q16
What information might you need to include when preparing a formal statistical report for the management team of a large events or reception centre? List five examples.
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Trainer Comments
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Q17
How can your present reports to enable informed decision-making?
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Trainer Comments
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Q18
How do you know when to complete reports?
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Trainer Comments
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Q19
What do the following terms mean?
a)
Financial viability
b)
Profitability
c)
Liquidity
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Trainer Comments
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Q20
List three main methods businesses use to increase their profits.
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Trainer Comments
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Q21
List two ways you can promote awareness of the importance of budget control
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Trainer Comments
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Q22
How does promoting the importance of budget control help you achieve team or work area goals?
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Trainer Comments
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Q23
How does trend analysis help identify areas for improvement in budget performance?
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Trainer Comments
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Q24
What are two questions you should be asking when assessing existing costs and resources?
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Trainer Comments
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Q25
What approaches or possible options can you investigate further to control and improve the management of expenses in a business?
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Trainer Comments
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Q26
What approaches or possible options can you investigate further to control and improve the management of payroll expenses in a business?
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Trainer Comments
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Q27
List three approaches or possible options you can investigate further to control and improve the management of accounts payable in a business.
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Trainer Comments
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Q28
What is a budget cycle? List the three common cycles used and their dates.
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Trainer Comments
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Q29
Explain how the features of accounting software programs can assist you to manage budgets.
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Trainer Comments
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Q30
What is one benefit of using computerised systems to maintain financial records?
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Trainer Comments
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Q31
There are four basic types of expenses you record in financial documents to ensure accurate monitoring. Describe and give one example for each type.
PART B: SITXFIN003 Manage Finances Within a Budget AT2.1
Q1
Download the Actual Q1 20xx/20xx P and L report below, study the figures and calculate the COGS % for each month and the quarter end (Q1). Fill the figures in to the shaded area on the report and upload the report using the upload provided.
(the formula can be find on internet)
Actual-Q1–P-and-L-report.xlsx(see the attachment please with same name)
Please upload here
Q2 Download the Master Budget Q1 20xx/20xx from below study the figures and calculate the COGS % for each month and the quarter end (Q1). Fill the figures in to the shaded area on the report and upload the report using the upload provided.
(the formula can be find on internet)
Master-budget-Q1.xlsx ( see the attachment please with same name)
Please upload here
Q3
Download the Variance Report Q1 20xx/20xx Master budget
Variance-Report-Q1.xlsx ( see the attachment please with same name)
Q3a
Using the figures from the Actual Q1 20xx/20xx P and L report (from Question 1) calculate the variances and variance % for the master budget in each cost line, enter your results in the shaded area. Upload your completed report.
Q3b
Review the results you have calculated on the Variance Report Q1 20xx/20xx Master budget, identify any trends that may be occurring.
- Using the Budgeting and Finance policy rules below, identify which areas you would investigate and why?
- Write a short report to senior management (trainer) on the results you have identified using the template provided below.
- Look at variances for each sales and expense sections on the master budget.
Q1-End-of-period-financial-report-template.docx ( see the attachment please with same name)
BUDGETING-AND-FINANCE-POLICY.docx ( see the attachment please with same name)
Upload your report here
Q4
The senior management team believe that COGS are an area of concern, they would like you to download the 3 invoices below and investigate them for possible areas of concern or errors.
Please list what questions you would ask the suppliers in order to fix any findings, put all of your questions in a short note to your trainer (MS word format), upload the note below.
Yummy-Yummy-Invoice.docx (see the attachment please with same name)
ABP-Produce-and-Dry-Goods.docx(see the attachment please with same name)
Cluck-cluck-invoice.docx(see the attachment please with same name)
Upload your notes here
Q5
The senior management team were impressed by what you discovered and have asked you to source 2 alternative suppliers for area of supplies (Fruit and Vegetables, Dry goods and Poultry)
Please make a list of the new suppliers and upload them below.