Assessment B_SITXFIN003 Manage finances within a budget

10. Conduct research and write a budget report

Compile a report to the owner about what has occurred over the past three months.
You will also need to conduct some research when writing this report as outlined
below. Submit in the timeframe as provided to you by your assessor.
Include the following in your report:
∙ The status of the budget and the variations in relation to what was projected –
use percentages and figures to discuss a detailed account of what has occurred in
the overall actual budget in relation to projections.
∙ Lessons learned from what has occurred in the past quarter and ideas for how you
can prevent similar situations in the future by improvements that can be made.
∙ Undertake research to investigate new or different approaches to budget
management and then outline the benefits and advantages of different approaches
you could take and how these approaches may impact on customer service levels or
staff.
∙ Provide recommendations for budget management for the next quarter and
provide estimates for this period.
Make sure you use correct budget terminology, and your report is neatly
presented, clear and concise with the use of statistical representations.
Use the Budget report template to guide your work.
Submit to your assessor.
Ans:
The aim of this budget is to give you a general understanding of how the budget looks in real time,
so you can forecast costs and keep track of how the company is doing. We can see in budget table
the fresh farms is increased by 7% and we reduced the price of other items to make budget balance.
We have other option that we can increase budget amount but in our senior, we cannot increase our
budget at all so we reduce the budget price in other items.

The budget has been effectively addressed in terms of cost savings, minimizing the costs associated
with waste, and many other aspects, as per the various situations highlighted in the case. The
variation is the real disparity between the actual budget and the budget that has been varied. i.e. the
newly created budget depicts a true picture of the budget with increments and decrements that, in
the end, result in a more accurate picture of the budget.
We already discussed about the waste management that by ordering less fresh item how much that
we need, however we can store the fresh item as a frozen and can use when it is needed. In our
budget table we can see food sale income is $32,000, 33,500 and 35,000 in month 1, 2 and 3. The
variance of food sale is 32.70 % which is less than previous one. Total cost of sales are $20,000,
$20,000 and $25,250 and the variance is 29.86% which is less than previous one.
1 Prepared by Shaujan Paudel
Assessment B_SITXFIN003 Manage finances within a budget

There are operating expenses like wages, insurance, utilities, rent marketing and so on which is
constant. The total operating activities expenses for month 1, 2 and month 3 are $27,700, $27,700
and 31,700. In 3rd month the operating expenses is more as compare to month 1st and month 2nd.
We can see that we got net profit in month 1, 2 and month 3 i.e $15,300, $19,800 and $ 6,250. In
the 3rd month we got less net profit as compare to other 2 months because of increase in cost and
wastage of fresh food.

As seen in Case 9, the budget has been widely distributed and built, weakening the circumstances
that have had a negative impact on the preparation and forecasting of future events. The same
method can be used to estimate the second quarter's budget. If there is increase in budget item of
one product, we can reduce the budget amount other item to make a balance budget or to minimize
the loss. However, we can seek the different supplier who can supply the product in lower price.

2 Prepared by Shaujan Paudel