FNSACC513 Rattanawadee Pholsan

Student Name:
Student Assessment Booklet
FNSACC513
Manage budgets and forecasts
FNSACC513 Manage Budgets and forecasts
Table of Contents
Table of Contents 2
Assessment Information 3
Assessment Instructions 5
Student Assessment Agreement 6
Assessment Task 1 Cover Sheet 7
Assessment Task 1: Written Questions 8
Assessment Task 1 Instructions 10
Assessment Task 1 Checklist 11
Assessment Task 2: Budget and forecast preparation project 13
Assessment Task 3: Budget variance project 20
Cass Training Pty Ltd t/a Cass Training International College RTO No. 90309 CRICOS Provider No. 00956C Page | 2
© J&S Learningwork Student Assessment Booklet V 19 May 2019
Assessment Information
The assessment tasks for FNSACC503 Manage budgets and forecasts are included in this Student
Assessment Tasks booklet and outlined in the assessment plan below.
To be assessed as competent for this unit, you must complete all of the assessment tasks satisfactorily.
Assessment Plan
Assessment Task Overview

1. Written questions You must correctly answer all questions
2. Budget and forecast preparation project You must prepare specified budgets, provide a report
and participate in a meeting.
3. Budget variance project You must prepare a performance report on budget
variance.
Assessment Preparation
Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for
clarification if you have any questions at all.
When you have read and understood this unit’s assessment tasks, print out the Student Assessment
Agreement. Fill it out, sign it, and hand it to your assessor, who will countersign it and then keep it on file.
Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.
Assessment appeals
If you do not agree with an assessment decision, you can make an assessment appeal as per your RTO’s
assessment appeals process.
You have the right to appeal the outcome of assessment decisions if you feel they have been dealt with
unfairly or have other appropriate grounds for an appeal.
Naming electronic documents

It is important that you name the documents that you create for this Assessment Task in a logical manner.
Each should include:
 Course identification code
 Assessment Task number
 Document title (if appropriate)
 Student name
 Date it was created
For example, FNSACC513 AT3 Performance Report Joan Smith 20/10/18
Additional Resources
You will be provided with the following resources before you begin each Assessment Task.
Assessment Task 2
 Balance Sheet
 Budget Report Template
 Risk Management Policy and Procedures
 Green Cat Budget Template
Assessment Task 3
 Performance Report Template
Assessment Instructions
Each assessment task in this booklet consists of the following:
Assessment Task Cover Sheet

This must be filled out, signed and submitted together with your assessment responses.
If you are submitting hardcopy, the Cover Sheet should be the first page of each task’s submission.
If you are submitting electronically, print out the cover sheet, fill it out and sign it, then scan this and submit
the file.
The Assessment Task Cover Sheet will be returned to you with the outcome of the assessment, which will
be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your
assessor will include written feedback in the Assessment Task Cover Sheet giving reasons why. Your
assessor will also discuss this verbally with you and provide advice on re-assessment opportunities as per
your RTO’s re-assessment policy.
Depending on the task, this may include

 resubmitting incorrect answers to questions (such as short answer questions and case studies)
 resubmitting part or all of a project, depending on how the error impacts on the total outcome of the
task
 redoing a role play after being provided with appropriate feedback about your performance
 being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily
completed the first time, after being provided with appropriate feedback.
Assessment Task Information

This gives you:
 a summary of the assessment task
 information on the resources to be used
 submission requirements
 re-submission opportunities if required
Assessment Task Instructions

These give questions to answer or tasks which are to be completed.
Your answers need to be typed up using software as indicated in the Assessment Task Instructions.
Copy and paste each task’s instructions into a new document and use this as the basis for your assessment
task submission. Include this document’s header and footer.
If you are submitting electronically, give the document a file name that includes the unit identification
number, the task number, your name and the date.
Checklist
This will be used by your assessor to mark your assessment. Read through this as part of your preparation
before beginning the assessment task. It will give you a good idea of what your assessor will be looking for
when marking your responses.
Student Assessment Agreement
Make sure you read through the assessments in this booklet before you fill out and sign the agreement
below.
If there is anything that you are unsure of, consult your assessor prior to signing this agreement.
Have you read the assessment requirements for this unit?  Yes  No
Do you understand the requirements of the assessments for this unit?  Yes  No
Do you agree to the way in which you are being assessed?  Yes  No
Do you have any specific needs that should be considered?  Yes  No
If so, explain these in the space below.
Do you understand your rights to re-assessment?  Yes  No

Do you understand your right to appeal the decisions made in an assessment?  Yes  No
Student name
Student number
Student signature
Date
Assessor name
Assessor signature
Date
Assessment Task 1 Cover Sheet
Student Declaration
To be filled out and submitted with assessment responses
 I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded
with any other student(s).
 I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken against
me according to the process explained to me.
 I have correctly referenced all resources and reference texts throughout these assessment tasks.
Student name
Student ID number
Student signature
Date
Assessor declaration
 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 name
Assessor signature
Date
Assessment outcome S NS DNS Resubmission Y N
Feedback
Student result response

 My performance in this assessment task has been discussed and explained to me.
 I would like to appeal this assessment decision.
Student signature
Date
A copy of this page must be supplied to the office and kept in the student’s file with the evidence.
Assessment Task 1: Written Questions
Task summary
This is an open book test, to be completed in the classroom.
A time limit of 1.5 hours to answer the questions is provided.
You need to answer all of the written questions correctly.
Your answers must be word processed and sent to the assessor as an email attachment.
Required
 Access to textbooks/other learning materials
 Computer and Microsoft Office
 Access to the internet
Timing
Your assessor will advise you of the due date of this assessment.
Submit
 Answers to all questions
Assessment criteria
All questions must be answered correctly in order for you to be assessed as having completed the task
satisfactorily.
Re-submission opportunities
You will be provided feedback on your performance by the Assessor. The feedback will indicate if you have
satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any
part of this task or if you have any learning issues or needs that may hinder you when attempting any part of
the assessment.
Written answer question guidance

The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell
you how you should answer the question. Use the definitions below to assist you to provide the type of
response expected.
Note that the following guidance is the minimum level of response required.
Analyse – when a question asks you to analyse something, you should do so in detail, and identify
important points and key features. Generally, you are expected to write a response one or two paragraphs
long.
Compare – when a question asks you to compare something, you will need to show how two or more things
are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected
to write a response one or two paragraphs long.
Contrast – when a question asks you to contrast something, you will need to show how two or more things
are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write
a response one or two paragraphs long.
Discuss – when a question asks you to discuss something, you are required to point out important issues or
features and express some form of critical judgement. Generally, you are expected to write a response one
or two paragraphs long.
Describe – when a question asks you to describe something, you should state the most noticeable qualities
or features. Generally, you are expected to write a response two or three sentences long.
Evaluate – when a question asks you to evaluate something, you should put forward arguments for and
against something. Generally, you are expected to write a response one or two paragraphs long.
Examine – when a question asks you to examine something, this is similar to “analyse”, where you should
provide a detailed response with key points and features and provide critical analysis. Generally, you are
expected to write a response one or two paragraphs long.
Explain – when a question asks you to explain something, you should make clear how or why something
happened or the way it is. Generally, you are expected to write a response two or three sentences long.
Identify – when a question asks you to identify something, this means that you are asked to briefly describe
the required information. Generally, you are expected to write a response two or three sentences long.
List – when a question asks you to list something, this means that you are asked to briefly state information
in a list format.
Outline – when a question asks you to outline something, this means giving only the main points, Generally,
you are expected to write a response a few sentences long.
Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the
main points. Generally, you are expected to write a response a few sentences long.
Assessment Task 1 Instructions
Provide answers to all of the questions below:
1. Discuss the key purpose and objectives of budgeting.

Budgets are of vital important for ensuring that resources are allocated in alignment with the
strategic goals and target set across the entire organisation.
The budget will then ensure that the expected performance of the business can be tracked and
so that then timely decisions can be taken to address shortfalls against identified targets or to
maximise an emerging opportunity.
2. Discuss the key purpose and objectives of forecasting.

Forecasting is data analysis with the aim of providing information to the management team.
Forecasts can be made of income and expenditure and therefore profitability. Forecasting thus
provides a structure to a company’s planning process and assists with decision making around
the allocation of resources and so that resources can be allocated to the most profitable parts of
a business.
3. Discuss why key performance indicators are used in budgeting and forecasting and provide
three examples of financial key performance indicators.
Key performance indicators assist managers to analyse the current financial position of a
company and in considering trends and establishing patterns. These patterns can then identify
the strengths and weakness of the company.
 Net profit after tax
 Sales revenue
 Earnings per share
 Expenses incurred
4. Discuss why milestones are used in budgeting and forecasting.

Milestones mark specific points in a budgeting and forecasting process such as the time when a
budget check should be undertaken. These milestones can then be the point at where the
success or otherwise of a budget is assessed.
5. Discuss ethical considerations for budgetary forecasting and projections taking into account the
strength of budget assumptions and forecast reliabilities.
Ethical issues can arise in budgeting through managers creating budgets, which include
forecasts which are easy them to achieve thus assisting the manager on a personal level to, for
example, achieve any performance-based pay associated with achievement of budgets or to
simply meet performance standards. Thus, there is a conflict between the planning and control
phase, which is usually best to be separated to avoid this problem.
6. Describe at least two types of information and data that a company can use for budgeting and
forecasting. Ensure that your answer also includes the source of the information and data.
Historical information – companies can review their previous financial statements to assist in
preparing a budget.
Business plan – companies can use their business plan to assist in the budgeting and
forecasting process as the plan will define an organisation’s goals and objectives, which should
inform budgets and forecasts developed.
Economic trends – companies can use economic trends for example, demand for a particular
product or service.
7. Outline the information you may use to forecast sales, and the different information you would
need to forecast production.
Sales: Economic trends, actions of competitors, past sales, past sales trends, government
policies,
Production: trends in costs of production inputs, trends in labour supply, availability of raw
materials.
8. Explain fixed costs in a budgeting context and provide an example of a fixed cost.
Fixed Costs are costs that remain the same for a period of time regardless of the level of sales
activity. An example would be rent.
9. Explain the characteristics of variable costs.

They change in total in proportion to changes in the level of activity. The cost per unit remains
constant over the relevant range. The relevant range is between zero and normal capacity.
Outside this range the cost relationship may alter.
10. Compare and contrast two forecasting techniques, including the different circumstances in
which these might be used.
Rolling forecasts – allow budgets to be revised on a regular basis throughout the year. They are
useful, for example for cash-strapped companies
Sample moving average – represent averages over specified consecutive periods
11. Explain key features of a budgeting and forecasting policy and procedure.
Budgeting and forecasting policies should include, as a minimum:
 Departments/people responsible for preparing budgets.
 Timeline for preparing draft and final budgets.
 Formats for the preparation of budgets.
 Those with access to financial information.
12. Explain why communication is of key importance in the budgeting process.

Budgets serve as a controlling mechanism as they form the basis for comparing actual
performance against the predetermined standards as created in the budget plan. Thus, it is of
the utmost importance that relevant staff know about the budget and can also give feedback. In
addition, because the budget has been communication, variations from that plan can then be
identified by staff and corrective action discussed and implemented.
13. Explain the principle of accrual accounting.

Accrual accounting is an accounting method which measures the performance and position of a
company by recognizing economic events regardless of when cash transactions occur.
14. Discuss the importance of budgetary control.
Budgetary control is a control technique whereby any differences (variances) are made the
responsibility of key individuals who can either exercise control action or revise the original
budgets. This enables managers to monitor organisational functions.
15. Explain the concept of double entry bookkeeping and provide at least one example.
A double-entry bookkeeping system is a set of rules for recording financial information in a
financial accounting system in which every transaction or event changes at least two different
nominal ledger accounts.
Some examples are:

1. Work in process inventory 321,120 Debit
Raw material inventory 321,120 Credit
2. Accounts receivable 1,800,000 Debit
Sales 1,800,000 Credit
3. Cash – Debit
Sales – Credit
4. Expenses – Debit
Cash/Bank – Credit
16. Discuss the principles of statistical analysis and measures of variance.

Statistical analysis includes variance which is the difference between an actual and a standard
cost.
A price variance shows the difference between what was paid for inputs and what should have
been paid for inputs. The formula used to determine this is:
Price element = (Actual price – Standard price) (Actual input quantity)
17. Explain the importance of identifying trends when reviewing and documenting a budget.
It is important to find out if we need more or less allocation in specific areas as trends will
change the forecasted figures.
Finding any trend in a budget will help the business to find any strengths and weakness arising
in a particular department or segment of the business.
Business will be able to focus on more profitable aspects when trends are identified. It is also
easy for the business to do a comparative analysis from one year to another or with the
competitors.
18. Briefly explain the concept of corporate governance and the parties within an organisation who
are responsible for corporate governance.
Corporate governance is the system by which companies are directed and managed. Parties
responsible include directors, shareholders and auditors.
Assessment Task 1 Checklist
Student’s name:
Did the student provide a sufficient and Satisfactory

performance Comments
clear answer that addresses the
suggested answer for the following? Yes No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Question 15
Question 16
Question 17
Question 17
Task Outcome: Satisfactory  Not Satisfactory 

Assessor signature
Assessor name
Date

Student Declaration
Student name
Student ID number
Student signature
Date
Assessor name
Assessor signature
Date
Feedback

Student signature
Date
Assessment Task 2: Budget and forecast preparation project
Task summary
For this assessment task, you are required to prepare budgets and a pre-meeting report and then participate
in a meeting to discuss the proposed budget and finalise the budget.
This assessment is to be completed in the simulated work environment in the RTO.
Required
 Computer with Microsoft Office and internet access
 Budget Report Template
 Balance Sheet
 Risk Management Policy and Procedures
 Green Cat Budget Template
Timing
Your assessor will advise you of the due date of these submissions.
Submit
 Email with Budget Report and Green Cat Budget attached
 Email with Revised Green Budget Report attached
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all
of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete
further assessment to demonstrate competence.
the assessment.
Review the following information:
Green Cat Clothing is a wholesaler of vintage clothing, selling to retail stores across Australia. The business
is managed by Beverley Simons, who currently operates the business as a sole trader. The business is
registered for GST and prepares a BAS on a quarterly basis.
As Beverley’s Finance Officer, you are required to prepare the budgets according to the business’ budget
objectives, as well as financial procedures, which state that budgets are to be prepared on a month-by-
month basis for the upcoming quarter.
Beverley has also recently advised you that she wishes to expand the business by purchasing a factory and
manufacturing and selling vintage fabrics. The budget for the following three months is therefore particularly
important, as she would like to provide it to the local bank manager to assist in her application to secure a
loan for the business expansion.
Beverley has therefore asked for you to prepare the budget, as well as a budget report that identifies key
performance indicators that can be used to monitor financial performance, as well as the relevant milestones
for each of the performance indicators. Beverley considers that this will also show the Bank Manager that
the business is closely monitoring its performance.
Beverley provides you with her latest Balance Sheet (dated 30 March 2017) and has asked you to prepare
month-by-month budgets to 30 June 2017.
She also provides you with the following additional Information:
Actual sales
Actual sales for the first quarter of 2017 (to March 31, 2017)
 January $350,000
 February $346,000
 March $385,000
Due to high consumer demand for the company’s products, Beverley has advised the following forecasted
sales for the next quarter as follows:
 April $423,500
 May $466,000
 June $512,500
Terms of sale:
Most sales (80%) are on a credit basis with customers offered a 1% discount for payment of invoices within
10 working days of the invoice date.
Cash sales for the business amount to 20%.
The Accounts Receivable Balance at 30 March 2017 is $376,500, which includes $80,045 of debtors from
February and the remainder from March.
Debtor payment information:

Based on experience, debtors usually pay as follows:
 50% pay within the 10 working days and receive the cash discount.
 20% pay within one month of the invoice (no discount applies).
 27% pay in the second month after the invoice date.
 3% are bad debts and are written off.
Purchase and inventory:

Purchases of vintage clothing for resale are all on credit and are paid in the month following the purchase.
Beverley’s supplier provided her with a 2% cash discount on 20% of the payments. GST applies to the
discount.
Stock mark up: 70%
Closing inventory: to represent 40% of the following months sales.
Operational expenses:
Beverly has the following costs:
Administration expenses: this amount to 10% of each month’s purchase and are paid in the month in which
the expenses are incurred.
Marketing expenses represent 8% of each month’s sales and are also paid in the month in which they are
incurred.
Beverley bought a warehouse for her business and pays mortgage interest each month. So as to maximize
tax reduction, the loan for the warehouse is interest only. The interest rate for the mortgage is 4.5%. No
GST is payable.
Rates are also payable on the property and amount to $18,000 per year. Rates are payable each quarter
($4,500 per quarter). No GST is payable.
There is an outstanding amount of GST payable to the ATO as per the Balance Sheet.
Now complete the following activities:
1. Prepare budgets
The first part of this assessment requires you to review the case study information provided and
prepare the following budgets using the Green Cat Budget Template:
 Sales budget
 Purchases budget
 Cost of goods sold budget
 Expenses budget
 Schedule of payments
 Schedule of collection from debtors
 Cash budget
 GST Payable ledger account
You are also required to prepare:

 A budgeted Profit and Loss for the quarter
 Budgeted Balance Sheet for the quarter
Prepare a Worksheet for each budget and income statement/balance sheet.
Assume that Beverley has asked you to attend the meeting with the Bank Manager to discuss
the potential loan for the business expansion and that you are required to prepare for this
meeting.
Beverley has asked you to lead the meeting and explain each of the budgets you have
developed. You will also have to explain the key assumptions on which the budget is based and
the proposed key performance indicators to make sure that the budget keeps on track.
Beverley has also asked that you identify key financial risks for the organisation and strategies
to address these to give the Bank Manager confidence in your forecasts.
Beverley has advised you that the Bank Manager will challenge the sales forecasts as he
considers these to be too optimistic.
19. Write a budget meeting preparation report

Use the Budget Report Template to guide your writing of the report.
Consider how you will handle the meeting to ensure that the meeting is conducted so as to
ensure understanding, goodwill and ongoing cooperation. Make suggestions in your report as to
how to handle this.
 Based on the above information, you are required to prepare a short report to provide to
Beverley prior to the meeting with the
The budget’s objectives

- To perform the monthly of the budget at the Green Cat clothing which can divide into 6
sections which included trial balances monthly, sales budget, expenses budget, cash receipts budget,
cash payment budget, and cash budget.
 Bank Manager and that includes:
How your Green Cat Budget is relevant to the objectives.
- In terms of the relevant, there are 5 monthly that has presented on the report to show the different
monthly expenses which included Trial balances form, sales budget, purchase budget, expense budget,
cash receipts budget, cash payment budget, and cash budget.
An outline of key assumptions and parameters for the budgets prepared
1) Budgets are to be prepared on a month-by-month basis for the upcoming quarter.

The following forecasted sales for the next quarter as follows:
April$423,500
May$466,000
June$512,500
2) Cash sales for the business amount to 20%
3) Based on experience, debtors usually pay as follows:

50% pay within the 10 working days and receive the cash discount.
20% pay within one month of the invoice (no discount applies).
27% pay in the second month after the invoice date.
3% are bad debts and are written off.
4) Stock mark up: 70%
5) Closing inventory: to represent 40% of the following months sales.
6) Administration expenses: this amount to 10% of each month’s purchase
7) Marketing expenses represent 8% of each month’s sales
An explanation of recommended key performance indicators and milestones including a clear

rationale for such
The business has developed the following KPI:

1) Net profit Margin
2) Inventory Turnover Ratio
3) Debt Ratio
4) Gross Profit Margin
5) Budget Variance
4) Return in Investment
5) Operating Income
Key financial risks for the organisation (at least three) and recommended strategies to address
these, as set out in the risk management policy and procedures.
The basic methods for risk management— sharing, transferring, and loss prevention and reduction—can
apply to all facets of an individual's life and can pay off in the long run.
- In terms of sharing risk, it can be applied to how employer-based benefits are often more affordable than if
an individual gets their own health insurance.
- Transferring risk relates to healthcare in that the cost of the care is transferred to the insurer from the
individual, beyond the cost of premiums and a deductible.
By accepting the terms and conditions and paying the premiums, an individual has managed to transfer
most, if not all, the risk to the insurer. The insurer carefully applies many statistics and algorithms to
accurately determine the proper premium payments commensurate to the requested coverage. When
claims are made, the insurer confirms whether the conditions are met to provide the contractual payout for
the risk outcome.
- Loss prevention and reduction are used to minimize risk, not eliminate it—the same concept is used in
healthcare with preventative care.
Health insurers encourage preventative care visits, often free of co-pays, where members can receive
annual check-ups and physical examinations. Insurers understand that spotting potential health issues early
on and administering preventative care can help minimize medical costs in the long run. Many health plans
also provide discounts to gyms and health clubs as another means of prevention and reduction in order to
keep members active and healthy.
Strategies to gain understanding, goodwill and ongoing cooperation.
During the meeting with the local bank manager, you should follow the following strategies to gain the
understanding, Goodwill and ongoing cooperation1) Be polite with the customer, 2) Increase customer
satisfaction, 3) Use active listening and clearly, 4) Use simple language so that customer can understand
well, 5) Try to increase the cash sale instead of the online payments, 6) Understand the protocols of diverse
ethnic community groups
20. Send an email to Beverly (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite,
business-like) style.
It should summarise the contents of the attachment.
Attach your Fat Cat Budget and Budget Report to the email.
Your assessor will also advise you of the place, date and time of the meeting.
Dear Beverly,
I am writing to inform that I have attached the Fat Cat Budget detail. This report is contained the
key assumptions and proposed by KPIs to ensure the budget is on the company track and
goals.
Furthermore, I have also identified key financial risks and strategies to mitigate such risks for
additional information for the bank manager.
Please let me know when you available to discuss all these pieces of information and for further
revisions if needed.
Thank you and I am waiting for your update.
Best Regards,
Rattanawadee
21. Participate in the meeting

The next part of the assessment activity requires you to participate in the meeting with the Bank
Manager (roleplayed by your assessor).
Carefully explain each of the budgets you have prepared and key assumptions, as well as the
key performance indicators to ensure the budget is on track.
At the meeting you will be required to demonstrate effective communication skills including:
 Speaking clearly and concisely
 Using active listening and questioning to confirm and clarify information.
 Using the strategies that you have identified to promote understanding, cooperation and
goodwill.
The Bank Manager (your assessor) will ask you a number of questions and give you some
feedback on the budgets. You will need to take this into account in the final part of the
assessment task so make notes if you need to.
Answers
- Strategies to gain understanding, goodwill and ongoing cooperation: First of all, all meeting
attendees will be prepared for the meeting. It is important to be on time, to use polite and
professional language, to have a positive attitude. All question arisen must be fully answered in
a brief and professional manner.
22. Write a short report on the vintage clothing industry.

The report should be about half a page long.

It should sales identify trends in the vintage clothing industry and give a more realistic estimate
for the growth in Green Cat Clothing’s sales.
Vintage Clothing Industry
Introduction
- This report outlines a more reasonable estimation for sales growth
Purposes
- As per the discussion with the bank manager, this report serves as a revision to the sales growth
initially presented. This sales growth is determined based on the research conducted on the vintage
clothing industry. As a result, trends have been identified and a more realistic growth in sales is now
used to adjust the original estimates.
Recommendation
- Based on the accumulated data, the estimated sales growth has been adjusted to 10% from the
original projection of 20%
23. Revise the Green Cat budget

Using the figure that you arrived at in the previous activity, recalculate the budget.
Name this Workbook Revised Green Cat Budget.
24. Send an email to the Bank Manager (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite,
business-like) style.
The email text should include your short report on the vintage clothing industry.
It should also give your revised growth figure, and your rationale for the adjustment based on
the research you have conducted.
The email text should also summarise the contents of the attachment.
Attach your Revised Green Cat Budget to the email.
Dear Sir,
Please find the enclosed revised green cat budget as per your instruction
Moreover, as discussed previously, the report on the vintage clothing industry is attached as well. It contains
the revised growth figure and the rationale for the given adjustment as per the research we conduct
Best Regards,
Rattanwadee
Student’s name:
Completed
successfully Comments
Did the student: Yes No
Correctly identify cash, expenditure and revenue items
from the information provided and use to prepare
required budgets?
Prepare monthly budgets for a quarter as per budget
objectives?
Present budgets in Microsoft Excel as per organisational
procedures?
Identify and report on suitable performance indicators
and milestones?
During the meeting, demonstrate effective
communication skills including:
 Speaking clearly and concisely
 Using active listening and questioning to confirm and
clarify information
 Using the strategies that you have identified to
promote understanding, cooperation and goodwill?
Include realistic, ethical and attainable estimates of
future cash flow, costs and revenues within the budgets
based on all information provided?
In the budget report, outline key assumptions and
parameters used in the budget?
In the budget report, outline relevant financial risks and
protection strategies for the business?
Provide reports in required timelines?
Research and report on market growth figures and in the
email compare with projections?
Revise budget based on identified projections including
a clear rationale for such in the email?

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Date

Student Declaration
Student name
Student ID number
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Feedback

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Assessment Task 3: Budget variance project
Task summary
In this assessment tasks students are required to review actual and budget information and provide a
performance reports with recommendations.
This assessment is to be completed in the simulated work environment in the RTO.
Required
 Computer with Microsoft Office and internet access
 Performance Report Template
Timing
Your assessor will advise you of the due date of these submissions.
Submit
 Email with performance report attached
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all
of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete
further assessment to demonstrate competence.
the assessment.
Carefully read the following:
Renata Resonance Ltd specialises in audio equipment. The company commenced operations on 1 st July
2016.
Actual and budgeted figures for the financial year ending 2017 are as follows:
Expected Actual
Sales $600,000 $620,000
Cost of Sales $330,000 60% of budgeted sales
Promotional expenses $144,000 15% of budgeted sales
Wages expenses $96,000 $62.000
General expenses $24,000 $31,000
Complete the following activities:
1. Assume that Renata has hired you to review the company’s finances and to create a
performance report for the company that includes final calculations of:
 Sales
 Cost of sales
 Gross profit
 Promotional expenses
 Administration expenses
 General expenses
 Total expenses
Renata would also like you to:

 show the variances in dollars and as a percentage
 indicate whether the variance is favourable or unfavourable
 make recommendations based on your analysis for addressing any unfavourable variances
Use the Performance Report Template to guide your writing of the report.
The report should include
 completed calculations
 summary of variances
 recommendations regarding how to address variances
A table is included in the report to assist you in presenting the financial information.
2. Send an email to your assessor

The text of the email should summarise the contents of the attachment.
Attach your report to the email.
Send the report within the timelines advised by your assessor at the meeting.
Dear Sir,
I am writing to inform about the meeting. Based on the previous meeting, as your instructions to
review the company finances, please find the performance report enclosed with this email. It
outlines the completed calculations, summary of variances and recommendations regarding how
to address such variances.
This report is sent within the timeline you suggested for submitting the revised budget to you. I
trust you will find this informative and sufficient for you to make a decision in regards to our loan
application.
Thank you and hoping for you positive consideration on our application.
Best Regards,
Rattanwadee
Student’s name:
Completed
successfully Comments
Did the student: Yes No
Develop a performance report that includes:
 An accurate analysis of budget variances
 Suitable recommendations based on analysis?
Provide recommendations for review of budget
processes?

Assessor signature
Assessor name
Date
Final Results Record
Student name:
Student ID number:
Assessor name:
Final Assessment Results
Task Type Result

Satisfactory Unsatisfactory Did not submit
Assessment Task 1 Written questions S U DNS
Budget and forecast preparation

Assessment Task 2 S U DNS
project
Assessment Task 3 Budget variance project S U DNS
Overall unit result 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: __________

FNSACC513 Rattanawadee Pholsan

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Student Assessment Booklet

Assessment Task Overview

Naming electronic documents

Each assessment task in this booklet consists of the following:

Assessment Task Cover Sheet

Depending on the task, this may include

Assessment Task Information

Assessment Task Instructions

Student Assessment Agreement

Do you understand your rights to re-assessment?  Yes  No

Assessment Task 1 Cover Sheet

Assessment outcome S NS DNS Resubmission Y N

Student result response

Assessment Task 1: Written Questions

Written answer question guidance

Assessment Task 1 Instructions

Provide answers to all of the questions below:

1. Discuss the key purpose and objectives of budgeting.

2. Discuss the key purpose and objectives of forecasting.

4. Discuss why milestones are used in budgeting and forecasting.

9. Explain the characteristics of variable costs.

12. Explain why communication is of key importance in the budgeting process.

13. Explain the principle of accrual accounting.

14. Discuss the importance of budgetary control.

Some examples are:

16. Discuss the principles of statistical analysis and measures of variance.

Assessment Task 1 Checklist

Did the student provide a sufficient and Satisfactory

Task Outcome: Satisfactory  Not Satisfactory 

Assessment Task 2 Cover Sheet

Assessment outcome S NS DNS Resubmission Y N

Student result response

Assessment Task 2: Budget and forecast preparation project

This assessment is to be completed in the simulated work environment in the RTO.

Assessment Task 2 Instructions

Review the following information:

Cash sales for the business amount to 20%.

Debtor payment information:

Purchase and inventory:

Now complete the following activities:

You are also required to prepare:

Prepare a Worksheet for each budget and income statement/balance sheet.

19. Write a budget meeting preparation report

The budget’s objectives

 Bank Manager and that includes:

How your Green Cat Budget is relevant to the objectives.

An outline of key assumptions and parameters for the budgets prepared

1) Budgets are to be prepared on a month-by-month basis for the upcoming quarter.

2) Cash sales for the business amount to 20%

3) Based on experience, debtors usually pay as follows:

4) Stock mark up: 70%

5) Closing inventory: to represent 40% of the following months sales.

6) Administration expenses: this amount to 10% of each month’s purchase

7) Marketing expenses represent 8% of each month’s sales

An explanation of recommended key performance indicators and milestones including a clear

The business has developed the following KPI:

Strategies to gain understanding, goodwill and ongoing cooperation.

20. Send an email to Beverly (your assessor).

Thank you and I am waiting for your update.

21. Participate in the meeting

22. Write a short report on the vintage clothing industry.

The report should be about half a page long.

Vintage Clothing Industry

Student Signature: ____________________________ Date: _

Assessor Signature: __________________________ Date: