Written test

Unit Code:- SITXFIN009

Unit Name:- Manage finances within a
budget

Assessment for this Unit of Details

Competency/Cluster
Assessment 1 Written Test
Assessment 2 Practical/Observation
Assessment 3
Assessment conducted in this instance: Assessment 1 2 3
 SITXFIN009 Manage finances within a budget

What will be assessed

The purpose of this assessment is to assess your underpinning knowledge to complete the tasks
outlined in the elements and performance criteria for this unit of competency and relating to the
following aspects:

• types of financial records:

o bank deposit documentation
o bank statements
o banking summaries
o business activity statements
o cheque books
o credit card transaction statements
o invoices
o journal entries
o labour and wages reports
o merchant statements
o merchant summaries
o transaction reports
types of budgets:
o cash budgets
o cash flow budgets
o departmental budgets
o event budgets
o project budgets
o purchasing budgets
o sales budgets
o wage budgets
o whole of organisation budgets
• factors for consideration in the preparation of financial and statistical reports:
o cash flow
o commercial account activity
o commission earnings
o covers and financial return
o daily, weekly and monthly transactions
o expenditure
o income
o occupancy rates and financial
return
o performance of department, project and/or products and
services
o sales performance
o sales returns
o staff costs
o stock levels
o variance in income and/or expenditure
o wastage
o yield

Duke College (DC) Assessment 1, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 2 of 9
 SITXFIN009 Manage finances within a budget
• use, contents of and formats for:
o budgets
o financial reports
o statistical reports
• budget terminology
• specific industry sector and organisation:
o use of budgets to control costs and enhance profitability
o importance of budget control
o techniques for maximising budget performance
o financial reporting procedures and cycles o features and functions of accounting software programs used
to manage budgets

Place/Location where assessment will be conducted

DC Class Room and DC Training Kitchen

Resource Requirements
Pen, Paper or computer

Instructions for assessment including WHS requirements

You are required to address all questions to achieve competence.
Your trainer will provide you with instructions for time frames and dates to complete this
assessment. If more space is required for any answer you may attach a separate page
containing your ID number, your name, unit title, unit code and the assessment task number
and attach this page with the current assessment task before submission or alternatively use
the back of each paper with a clear reference to the relevant question(s). Once completed,
carefully read the responses you have provided and check for completeness.
Ensure you check your work and keep a copy before submitting. You are encouraged to clarify
any tasks, requirements or questions you may have with your trainer Your trainer will provide you
with feedback and the result you have achieved.

Assessment Guidelines

Duke College (DC) Assessment 1, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 3 of 9
SITXFIN009 Manage finances within a budget

Assessment 1: Written Test

Your Task:
Answer the following questions.

Question 1

List 8 examples for financial records

: 1. Bank Statement
2. Bank deposit documentation
3. Banking summary
4. Credit Card transaction statement
5. Invoices :
6. Business activity statement
7. labour and wages report
8. Merchant statements

Question 2

List 4 different types of budgets.

1. Master budget
2. Cash flow budget
3. Project budget
4. Wage budget

Question 3

What is the purpose of preparing a draft budget?

To get feedback from the collague about the potential budget indication

Duke College (DC) Assessment 1, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 4 of 9
SITXFIN009 Manage finances within a budget

Question 4

What should you do with the feedback from the draft budget?

We can have feedback on draft budget and improve or correct the items in the final budget. This
make a good quality final budget.

Question 5

List 2 people the final budget might need to be distributed to.

1.Departmental Manager
2. Owners

Question 6

Why is it important for each department head to understand their part of the budget?

1. So that they understand how their section would be contribute to overall business
2. So they know any changes made between the drafts and the final budget.
3. So they understand why any denied budget request were not approved

Duke College (DC) Assessment 1, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 5 of 9
SITXFIN009 Manage finances within a budget

Question 7

Why should all staff have some knowledge of the budget for their area?

1.They can improve their performance on the basis of budget.

2.This can motivate them to work efficiently.
3.This can help them feel valued by organisation.

Question 8

Once the final budget has been approved, how often should it be monitored?

Usually it’s a monthly, but it may vary, depending on individual circumstances of the
business can be weekly, fortnightly ,monthly, quarterly and annually

Question 9

As well as receiving the final budget the management team should be advised of their reporting
duties. What should their report contain?

Report on overall picture of the department for the month

Commenting of any budget variant

Duke College (DC) Assessment 1, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 6 of 9
SITXFIN009 Manage finances within a budget
Question 10

Name 2 financial reports you might generate from your accounting system to check your budget
against actual income or expenditure.

1. Profit and Loss statement

2. Sales report

Question 11

Every revenue and expense item on the Profit and Loss Statement should be compared to what?

Budget

Question 12

When revenue variances occur, why should you talk to the staff to help identify, and find options to
Address the issue?

Revenue variance is the difference between the expected budget and the actual budget. When
revenue variance occur it means that organisation is lacking somewhere hence to improve and fix
that we need to talk to the staff to identify and find some new options to address the issue.

Question 13

List 2 factors that can cause variances in staff budgets.

1. Casual labour
2. efficiency of the staff

Duke College (DC) Assessment 1, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 7 of 9
SITXFIN009 Manage finances within a budget
Question 14

List 3 colleagues you may advise if you noticed that there were deviations between your budget and
your targets.

1. Manager
2. Financial supporter
3. HR manager
4. Accountants

Question 15

List 2 ways you might research new approaches to managing your budget.

1. You can talk to your existing supplier

2. Evaluating the staffing and rostering
3. Reviewing the operating procedures

Question 16

List 3 things you need to include in your budget report, to give the decision maker enough
information to do a clear cost versus benefit analysis of the budget request.

1. Explain the ideas

2. Reasons for the change
3. Benefits to the departments
4. Financial reports

Duke College (DC) Assessment 1, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 8 of 9
SITXFIN009 Manage finances within a budget
Question 17

If you are cutting expenditure, why must you be careful that the cuts do not cause the level of service
and product to fall?

When we cut staff and the services gets reduced and any reduction in the level of services can
impact any long term or reputation of the business.

Question 18

Name an accounting program you can use to help manage budgets.

Track my spend

Duke College (DC) Assessment 1, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 9 of 9