BSBFIM501A: Manage Budgets and Financial Plans Elements of competence

BSBFIM501A: Manage Budgets and Financial Plans Elements of competence
? Plan financial management approaches
? Implement financial management approaches
? Monitor and control finances
? Review and evaluate financial management processes
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 2
MODULE DESCRIPTION
This core module describes the skills and knowledge required to undertake financial
management within a work team in an organisation, including the performance
outcomes. This includes the planning and implementation of financial management
approaches, supporting team members, whose role involves aspects of financial
operations, monitoring and controlling finances as well as the reviewing and
evaluating effectiveness of financial management processes in line with the financial
objectives required.
LEARNING OUTCOMES
Upon successful completion of this module, students will:
• explain the budgeting process and its importance to a business,
• identifying the components of different budgets,
• forecast estimates for inclusion in the budgets,
• document different types of budgets,
• analyse and interpret budget outcomes and
• evaluate budgets against actual results and prepare performance reports.
TEACHING PROGRAM
Twelve (12) hours per week for five (5) weeks (sixty hours).
COURSE REQUIREMENTS
To be assessed as competent for this unit of competency you must be able to do the
following:
(1) Demonstrate understanding of all learning outcomes
(2) Successfully complete and submit all tasks as requested
Methods of assessment Through consultation with industry, the following
assessment methods have been deemed appropriate for
this unit.
Case Studies Two case studies have been developed to allow candidates
to demonstrate their knowledge and skills in the following
• Complete an analysis of a budget and financial plan
• Make recommendations in regards to maintaining
cost variation and expenditure overruns.
• create a budget
• analyse the information provided and identify the
steps that they will take to implement a sound
financial management approach
• modify created contingency plans
Written assignment The candidates are required to:
• Create a contingency plan using the information
provided
• analyse the contingency plan scenario and answer
the short answer questions
Short answer
questions
Short answer questions allow the candidate to demonstrate
their knowledge and skills in the following:
• legislative requirements
• organisational policies and procedures
• auditing processes
• problem solving techniques
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 3
ASSESSMENT DETAILS
Assessment Due
Assessment Task 1
Analysis of Financial Plan Week 1
Assessment Task 2
Contingency Planning Week 3
Assessment Task 3
Support and Resource Week 4
Assessment Task 4
Knowledge Quiz
Week 5
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 4
Assessment Task 1
Analysis of financial plans
Candidate’s name Phone No.
Assessor’s name Phone No.
Assessment site
Assessment date/s Time/s
Performance objective
Report and monitor expenditure and compare with financial plans so that
recommendations are developed for key stakeholders.
Assessment description
Complete the financial reporting for each period and develop recommendations using
the templates provided.
Procedure
1. Read the case study.
2. Complete the financial reports for each period as requested.
3. Analyse the data and complete your recommendations in the space provided.
4. Complete a new budget based on your recommendations.
Specifications
• financial data tabled is accurately
• basic accounting terminology is used in recommendations
• sound reasoning is used in calculating the strategies that are recommended
Submission guidelines
The assessment task is due on the date specified by your facilitator. Any variations to
this arrangement must be approved by your facilitator in writing.
The method of submitting the assessment (electronic or hardcopy) will be specified
by your facilitator prior to the due date.
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 5
Part 1 – Case Study
Proactive Management Consultants Pty Ltd (PMC) is a small service organisation
that provides consultative services to a wide variety of clients and has been in
existence for just over five years. Typically they advise their clients on professional
development opportunities, organisational structure and simple training initiatives.
Although the past 12 months have been profitable for PMC, they face a very
uncertain future. Reducing government support, the global financial crisis, an
increasingly competitive market and a client base that believe they are already
paying too much.
PMC prides itself on the advice they give their clients, however, finance has never
been their strength. The PMC board has approached your company to provide
monthly financial reports and recommendations on how they should proceed with
their financial plans.
PMC has provided each month’s sales and expenditure data from which they
require your company to complete the reporting in the provided templates, interpret
the data and provide recommendations.
Accounts payable are entirely paid month-to-month whereas accounts receivable is
calculated 60% current month, 30% last month, 10% second to last month: actual
May sales = $42,100, actual June sales = $47,300. These figures will be required
to determine actual sales receipts for July and August.
PMC has also provided you with a list of initiatives they had planned to undertake
over the next six months that have been budgeted for in their financial planning
which they need you to consider in your recommendations. They are:
• anticipate large invoicing month in July due to number of leads
• all company motor vehicle registrations and insurance are due in July
$18,000
• 15th of August moving to new premises whereby rent increases to $3,500
per month
• To increase productivity PMC will upgrade all computers under expensed
equipment in September at $12,000.
• have sought an aggressive advertising campaign in October to invigorate
lost clientele, $16,000
• Due to advertising campaign, PMC are recruiting two new consultants in
October. This will add 30% to November’s and December’s payroll and
$10,000 in recruitment and training during October and result in increased
business (40% November and December).
• purchasing a licence to deliver an innovative training program in November
for $20,000
• have contractual agreements in January and February that will generate
$32,000 in sales
• three employees on annual leave will have 50% impact on sales in
November
• conducting a professional development week for all staff in December
$18,000
• employee bonuses due in December, anticipate $16,000.
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 6
Jul 0X Budget $ Over Budget % of Budget Aug 0X Budget $ Over Budget % of Budget
Ordinary Income/Expense
Income
Reimbursed Expenses 600 1200
Sales 61200 42000
Services 0 100
Total Income 61800 43300
Expense
Bank Service Charges 50 50
Books and Publications 100 100
Dues and Subscriptions 50 50
Expensed Equipment 500 500
Advertising 2000 2000
Insurance 10000 1000
Finance Charge 100 10
Loan Interest 5000 3300
Licenses and Permits 700 0
Motor Expense 9000 2570
Office Supplies 150 150
Payroll Expenses 25000 25000
Postage and Delivery 20 20
Printing and Reproduction 1000 350
Accounting Fees 0 1200
Legal Fees 0 0
Recruitment and Training 0 500
Rent 1200 3500
Repairs 300 300
Software Expense 300 60
Stamp Duty 100 100
Telephone 100 100
Travel and Entertainment 1500 1000
Utilities 250 250
Total Expense 57420 42110
Net Income (EBIT) 4380 1190
Opening Balance 51,200 51200 49260
Receipts 55480 49250
Payments 57420 42110
Closing Balance 49260 56400
Proactive Management Consultants Pty Ltd – Financial Data – July to December 200X
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 7
Sep 0X Budget $ Over Budget % of Budget 1st Quart Budget $ Over Budget % of Budget
Ordinary Income/Expense
Income
Reimbursed Expenses 2000 3800
Sales 41000 144200
Services 400 500
Total Income 43400 148500
Expense
Bank Service Charges 50 150
Books and Publications 100 300
Dues and Subscriptions 50 150
Expensed Equipment 12000 13000
Advertising 500 4500
Insurance 1000 12000
Finance Charge 10 120
Loan Interest 3300 11600
Licenses and Permits 0 700
Motor Expense 1200 12770
Office Supplies 150 450
Payroll Expenses 25000 75000
Postage and Delivery 20 60
Printing and Reproduction 150 1500
Accounting Fees 0 1200
Legal Fees 1200 1200
Recruitment and Training 0 500
Rent 3500 8200
Repairs 0 600
Software Expense 60 420
Stamp Duty 100 300
Telephone 100 300
Travel and Entertainment 100 2600
Utilities 0 500
Total Expense 48590 148120
Net Income (EBIT) -5190 380
Opening Balance 56400
Receipts 45210
Payments 48590
Closing Balance 53020
Proactive Management Consultants Pty Ltd – Financial Data – July to December 200X
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 8
Oct 0X Budget $ Over Budget % of Budget Nov 0X Budget $ Over Budget % of Budget
Ordinary Income/Expense
Income
Reimbursed Expenses 700
Sales 49300 41000
Services 0 200
Total Income 49300 41900
Expense
Bank Service Charges 50 50
Books and Publications 100 100
Dues and Subscriptions 50 50
Expensed Equipment 500 500
Advertising 16000 500
Insurance 1000 1000
Finance Charge 10 10
Loan Interest 3300 3300
Licenses and Permits 700 20000
Motor Expense 2000 2570
Office Supplies 150 150
Payroll Expenses 25000 32500
Postage and Delivery 20 20
Printing and Reproduction 150 1000
Accounting Fees 0 1200
Legal Fees 0 0
Recruitment and Training 10000 500
Rent 3500 3500
Repairs 300 300
Software Expense 60 60
Stamp Duty 100 100
Telephone 100 100
Travel and Entertainment 1500 1500
Utilities 250 250
Total Expense 64840 69260
Net Income (EBIT) -15540 -27360
Opening Balance 53020 35110
Receipts 46930 44270
Payments 64840 69260
Closing Balance 35110 10120
Proactive Management Consultants Pty Ltd – Financial Data – July to December 200X
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 9
Jul 0X Aug 0X Sep 0X Oct 0X Nov 0X Dec 0X
Ordinary Income/Expense
Income
Reimbursed Expenses 0 800 1200 0 900 400
Sales 59000 44100 46000 51600 47000 67000
Services 0 300 100 300 1000 200
Total Income
Expense
Bank Service Charges 50 40 50 50 30 10
Books and Publications 80 200 80 30 80 80
Dues and Subscriptions 50 0 60 0 50 100
Expensed Equipment 600 450 12000 0 400 700
Advertising 2000 2000 500 16000 500 500
Insurance 10000 300 700 1000 1300 1200
Finance Charge 0 10 10 30 10 10
Loan Interest 4970 3300 3300 3300 3300 3300
Licenses and Permits 1100 0 0 700 20050 0
Motor Expense 9900 3100 3100 3200 2200 2100
Office Supplies 30 90 150 400 140 140
Payroll Expenses 25000 25000 25000 25000 32500 48500
Postage and Delivery 30 70 50 70 10 80
Printing and Reproduction 770 500 80 300 900 100
Accounting Fees 0 1200 0 0 1200 0
Legal Fees 0 500 0 0 300 0
Recruitment and Training 0 0 0 10000 500 18000
Rent 1200 3500 3500 3500 3500 3200
Repairs 250 0 0 500 200 0
Software Expense 300 60 60 60 60 60
Stamp Duty 70 100 100 0 0 100
Telephone 90 300 300 300 200 50
Travel and Entertainment 800 230 200 1200 1200 200
Utilities 247 250 250 250 250 250
Total Expense
Net Income (EBIT)
Opening Balance 51,200
Receipts
Payments
Closing Balance
Proactive Management Consultants Pty Ltd – Actuals – July to December 200X
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 10
Dec 0X Budget $ Over Budget % of Budget 2nd Quart Budget $ Over Budget % of Budget
Ordinary Income/Expense
Income
Reimbursed Expenses 500 1200
Sales 63000 153300
Services 0 200
Total Income 63500 154700
Expense
Bank Service Charges 10 110
Books and Publications 20 220
Dues and Subscriptions 50 150
Expensed Equipment 500 1500
Advertising 0 16500
Insurance 1000 3000
Finance Charge 10 30
Loan Interest 3300 9900
Licenses and Permits 0 20700
Motor Expense 2000 6570
Office Supplies 150 450
Payroll Expenses 48500 106000
Postage and Delivery 20 60
Printing and Reproduction 150 1300
Accounting Fees 0 1200
Legal Fees 0 0
Recruitment and Training 18000 28500
Rent 3500 10500
Repairs 0 600
Software Expense 60 180
Stamp Duty 100 300
Telephone 100 300
Travel and Entertainment 100 3100
Utilities 0 500
Total Expense 77570 211670
Net Income (EBIT) -14070 -56970
Opening Balance 10120
Receipts 55600
Payments 77570
Closing Balance -11850
Proactive Management Consultants Pty Ltd – Financial Data – July to December 200X
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 11
Notate your recommendations to PMC
In light of July 0X actual sales and expenditure:
Recommendation 1:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Recommendation 2:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
In light of August 0X actual sales and expenditure:
Recommendation 1:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Recommendation 2:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
In light of September 0X actual sales and expenditure:
Recommendation 1:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Recommendation 2:___________________________________________________
___________________________________________________________________
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 12
___________________________________________________________________
___________________________________________________________________
In light of October 0X actual sales and expenditure:
Recommendation 1:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Recommendation 2:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
In light of November 0X actual sales and expenditure:
Recommendation 1:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
Recommendation 2:___________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
On the following page adjust the actual sales and expenditure based on your
recommendations. Please note that this budget will be used as a basis for one of the
tasks in Assessment 2- ‘Contingency and Review’.
BSB51107 Diploma of Management
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 13
Opening Balance 51,200 51200 49260
Receipts 55480 49250
Payments 57420 42110
Closing Balance 49260 56400
Jul 0X Aug 0X Sep 0X Oct 0X Nov 0X Dec 0X
Ordinary Income/Expense
Income
Reimbursed Expenses
Sales
Services
Total Income
Expense
Bank Service Charges
Books and Publications
Dues and Subscriptions
Expensed Equipment
Advertising
Insurance
Finance Charge
Loan Interest
Licenses and Permits
Motor Expense
Office Supplies
Payroll Expenses
Postage and Delivery
Printing and Reproduction
Accounting Fees
Legal Fees
Recruitment and Selection
Rent
Repairs
Software Expense
Stamp Duty
Telephone
Travel and Entertainment
Utilities
Total Expense
Proactive Management Consultants Pty Ltd – Actuals – July to December 200X
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 14
Part 2
PMC met with David Grey and informed him of the proposed budget changes.
In the table below, circle the key stakeholders of PMC that David would need to
inform about the new budgetary changes and which part of the budget would
specifically affect their department or sector.
Name Position
David Grey Financial controller
Kelly Walsh Team leader HR department
Brianna White Operations manager
Belinda Toohey OHS representative
Amanda Maccarone Union representative
Angie Brown Senior accountant
Shankar Singh Marketing manager
Marta Fernandes Administration assistant
Jordyn Gee Sales manager
Karyn Ingilo Sales rep
Kylie Bentley Office temp
How would Eden Black negotiate with the relevant stakeholders to achieve maximum
outcome in relation to the new budget measures while not taking too much away
from the various departments?
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 15
Now list below where the financial controller can find the relevant information from
business documents, accounts and processes, to create reports to ensure that the
relevant departments are sticking to the new budget measures.
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 16
Assessment Task 2
Contingency planning
Candidate’s name Phone No.
Assessor’s name Phone No.
Assessment site
Assessment date/s Time/s
Performance objective
To assess candidates’ ability to create contingency plans and to analyse contingency
plans to ensure that they meet organisational requirements and mitigate risks to the
business.
Assessment description
Identify risks associated to the business and develop a contingency plan that
provides appropriate strategies to deal with the risks.
Procedure
1. Identify potential risks to the business.
2. Develop strategies to minimise those risks.
3. Identify who might need to be consulted as part of the plan.
4. Identify a dollar value for an activity that might incur a cost.
5. Use the template provided.
Specifications
• identified risks that are relevant to the business context
• developed strategies are appropriate to address the risks
• costs of contingency plan included and realistic
• appropriate people or roles in the business context are identified
Submission guidelines
The assessment task is due on the date specified by your facilitator. Any variations to
this arrangement must be approved by your facilitator in writing. The method of
submitting the assessment (electronic or hardcopy) will be specified by your facilitator
prior to the due date.
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 17
Part 1: Contingency plan
Create contingency plans for the following scenarios:
• One of your highly qualified consultants has given three months notice and is
planning to move to a competitor after this time.
• There has been a 34% increase in production; however a decrease of 22% in
sales has been recorded.
• The rental for the offices your company currently occupies is being increased
by $1750 per month. There is no available space for additional employees.
Contingency plan
Company name:
Name of person developing the plan:
Who was consulted as part of this plan?
Name Position
Risk identified:
Strategies/activities to minimise the risk By when By whom
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 18
Contingency plan
Company name:
Name of person developing the plan:
Who was consulted as part of this plan?
Name Position
Risk identified:
Strategies/activities to minimise the risk By when By whom
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 19
Contingency plan
Company name:
Name of person developing the plan:
Who was consulted as part of this plan?
Name Position
Risk identified:
Strategies/activities to minimise the risk By when By whom
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 20
Part 2: Plan analysis
Read the following Contingency plan developed by Eden Black for Proactive
Management Consultants Pty Ltd. Your task is to analyse the strategies that have been
developed to mitigate the risk and answer the questions below.
Contingency plan
Company name: Proactive Management Consultants Pty Ltd.
Name of person developing the plan: Eden Black
Who was consulted as part of this plan?
Name Position
David Grey Financial controller
Brianna White Operations manager
Angie Brown Senior accountant
Shankar Singh Marketing manager
Jordyn Gee Sales manager
Risk identified: Strong possibility of a new competitor moving within close proximity
to our company within six months. The current date is the 1st of July 20____.
Strategies/activities to minimise the risk By when By
whom
Work out a possible lower fee schedule to entice new
customers and remain competitive.
1/08/201X AB/DG
Increase the advertising budget and work on a new
marketing strategy.
15/08/201X SS/DG
Work with sales to extend current contract periods and
offer discounts as incentives for customers.
1/09/201X JG/AB
Enter into an agreement with existing firms for referral
to each other complimenting for services.
15/09/201X DG
Looks at ways of outsourcing to extend client base. 25/09/201X BW
Make six people redundant to compensate for future
losses.
20/10/201X BW/JG
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 21
1. Has Eden identified all strategies to mitigate the identified risk? Justify your
response.
2. Has Eden correctly identified the correct people to consult in the development of
the strategies? Justify your response.
3. If you believe Eden has not identified all the strategies or people to be consulted,
what would your recommendations be?
4. Are the timelines that Eden has created achievable? Justify your response.
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 22
Assessment Task 3
Support and resource
Candidate’s name Phone No.
Assessor’s name Phone No.
Assessment site
Assessment date/s Time/s
Performance objective
Create a development plan for a new employee that ensures they have the support
and resources they need to complete the tasks associated with budgets and financial
plans.
Assessment description
Analyse the case study and make recommendations using the templates provided.
Procedure
1. Read the case study.
2. Complete parts 1 and 2.
3. Make recommendations that ensure the employee is provided with
appropriate resources and support.
Specifications
• relevant skills are identified
• a demonstrated understanding of specific and transferable skills
• specific development opportunities are suggested
Submission guidelines
The assessment task is due on the date specified by your facilitator. Any variations to
this arrangement must be approved by your facilitator in writing.
The method of submitting the assessment (electronic or hardcopy) will be specified
by your facilitator prior to the due date.
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 23
Case study
Jack Curran is the sales manager for a small forklift dealership called Uplifter Pty
Ltd. Recently, Jack’s sales coordinator, Bev Jones. retired after 10 years. Bev is
certainly going to be missed as was able to do so much that it allowed Jack to
concentrate solely on selling forklifts rather than the day-to-day financial
management and planning. Jack realises he is certainly going to miss the all the
work Bev did for him.
A couple of weeks pass and Jack begins to realise the depth of the sales
coordinator position and how the right person, trained properly, will certainly be an
enormous asset. Jack begins to write a person specification that outlines the
requirements of the role.
Sales coordinator – Job specification
Duties will include:
• process all invoicing and purchase orders
• process all banking, cheque, credit card and cash receipts
• enter accounts receivable and payable
• enter journal entries and maintain general ledger
• administer petty cash
• develop monthly sales reports
• develop monthly profit and loss reports
• administer payroll for 15 employees.
This role will require a working knowledge of:
• MYOB and Excel computer applications
• general accounting practices
• general payroll practices.
Jack advertises the position and receives a resume from Emily Grime. The resume
indicates that Emily is qualified for the role. Emily’s previous two positions have
been slightly more junior, however very similar to the sales coordinator position.
Emily describes her Excel and MYOB skill level as intermediate and also states
that she has attained a Certificate IV in Business administration. After two
interviews Jack is convinced that Emily is the best person for the job and hires her.
Emily commences in seven days and Jack is determined to make this work. Jack is
seeking your help to write a list of information and procedures that he will need to
provide Emily so that she has all the knowledge, support and available resources
and systems to do her job well.
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 24
Part 1
Use the following table to develop your recommendations for Jack. Beside each
recommendation write what (if any) resources and systems Emily would need access
to in order for her to be able to fulfil her role obligations efficiently.
Duties Specific organisational information, support, resources
required
Invoicing
Purchase orders
Processing
cheques
Processing cash
Processing credit
cards
Entering accounts
payable and
receivable
Administer petty
cash
Enter journals and
maintain general
ledger
Banking
procedures
Spreadsheet sales
reports
Profit and loss
reports
Process payroll
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 25
Part 2
Develop a SMART objective and charter that clarifies Emily’s and your
responsibilities in relation to financial management. Outline in the charter how you
intend to support Emily in relation to her new responsibilities.
Objective:
No Activity By whom By when
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
REFERENCES
Manage budgets and forecasts, tafevc publications, 2006.
Hoggett & Edwards. Accounting in Australia. Wiley publications.
BSB51107 Diploma of Management _____________________________________________________________________________________________
HMBFP Manage Budgets and Financial Plans Student Guide v 2.0 August 2010 Page 26
WEEKLY SCHEDULE
WEEK TOPIC
1
• Introduction
• Objectives of budgeting
• Budget defined
• Business planning and forecasting
• Limitations of budgets
• Designing the budget
• Assessment Task 1 – Analysis of Financial Plan
2
• Types of budget
• Master budget and operational budgets
• Data for budget preparation
• Sales budget
• Production budget
• Budgeted profit and loss statement
• Advantages and disadvantages of budget
• Budget and variance
3
• Master Budget
• Budgeted statement of cash flows
• Budgeted balance sheet
• Performance appraisal
• Cash budgets
• The difficulties of sales forecasting.
• Human relations problems caused by budgets.
• Importance of budgeting to managers.
• Assessment Task 2 – Contingency Planning
4
• Budgetary control trading businesses
• Static budget reports
• Sales budget report
• Expenses budget
• Flexible Overhead Budget Report
• Responsibility accounting vs. budgetary control
• Types of responsibility centre
• Assessment Task 3 – Support and Resource
5
• Budget and planning
• Roles and responsibility of the budget process.
• Phases of the Budget Annual Cycle
• Resource Allocation Decisions
• Evaluating annual budget
• Managing budget
• Assessment Task 4 – Knowledge Quiz

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