Imagine Education

Student Assessment Cover

Sheet

Course Code SIT40516 Course Name Certificate IV in Commercial Cookery

Unit Code SITXFIN003 Unit Name Manage finances within a budget

Due Date ________________ Assessment Name Questions

Project

Student No. ________________ Student Name _____________________________

Student Phone ________________ Student Email _____________________________

Student Declaration
I declare that this assessment is my own work and where my work is supported by documents from my
workplace placement/employer permission has been granted.

Note: This assessment will not be accepted unless all sections have been completed and the front cover has been
signed and dated.

Filling out this coversheet as part of an electronic submission and approving the above information will operate in
the same way as physically signing this cover sheet.

Student Signature _________________________ Date: _____________________________

Office Use Only

Date/s Received: ___/___/___ ___/___/___ ___/___/___

Date/s Assessed: ___/___/___ ___/___/___ ___/___/___

Result of Assessment: ___________ ___________ ___________

Entered on Training Plan Moderation Signature

Note for Assessors: Filling out the above Office Use Only section as part of an electronic submission will operate in
the same way as physically signing this cover sheet. If not physically signed, Assessor must print their name in
signature box.

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 Imagine Education
Questions

Course Code and Name: SIT40516 Certificate IV in Commercial Cookery

Unit Code: SITXFIN003
Unit Title: Manage finances within a budget

Assessment 1

Your Task:

Answer the following questions below. All questions must be answered.

Question 1
List 8 examples for financial records
1. Journal entries
2. Invoices
3. Wage reports
4. Deposit books
5. Business activity statements
6. Cheque books
7. receipts
8. Bank statements

Question 2
List 4 different types of budgets.
1. Cashflow budgets
2. Departmental Budgets
3. Master Budget
4. Events Budgets

Question 3
What is the purpose of preparing a draft budget?

The purpose of preparing a draft budget is to expect some changes from the draft as it is very rare to become the
final budget

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 Question 4
What should you do with the feedback from the draft budget?

With the feedback from the draft budget, we must analyse the feedback where some changes are to be
expected. And when looking at the feedback, if you are not sure, you must consult others as to the relevance of the
change

Question 5
List 2 people the final budget might need to be distributed to.
1. Owners
2. Department Managers

Question 6
Why is it important for each department head to understand their part of the budget?

It is important for each department head to understand their part of the budget because they should be informed of
any responsibilities and further changes to be made from the draft budget and also they need to be
provided with the explanation of any changes and staff will understand about their departments, achieve sales
target

Question 7
Why should all staff have some knowledge of the budget for their area?
All staff should have some knowledge of the budget for their area as it can be inspiring or motivating for them to
understand what their sales targets or expenditure limits are, and why they have been set and encourage staff to
up-sell and on-sell and also encourage them to make a positive contribution to the department’s outcome.

Question 8
Once the final budget has been approved, how often should it be monitored?
Once the final budget has been approved, it should be monitored on a weekly, fortnightly, monthly, quarterly or
yearly basis to make sure that business is performing as expected.

Question 9

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

Their report should contain the overall view of the department for the month and also monitoring and
commenting if there is any budget variances.

Question 10
Name 2 financial reports you might generate from your accounting system to check your budget against actual
income or expenditure.
1. Cash flow reports
2. Sales reports

Question 11
Every revenue and expense item on the Profit and Loss Statement should be compared to what?

Every revenue and expense item on the profit and loss statement should be compared to the budgeted
figure.

Question 12
When revenue variances occur, why should you talk to the staff to help identify, and find options to address the
issue?
When revenue variances occur, we should talk to the staff to help identify, and find option to address the issue,
because the staff on the front line might have more idea of the reasons for the variances and also will give the
appropriate suggestions for the improvement.

Question 13 List 2 factors that can cause variances in staff budgets.

1. Occupancy levels
2. Covers

Question 14 List 3 colleagues you may advise if you noticed that there were deviations between your budget
and your targets.
1. Accountant
2. Head of Departments
3. Managers

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 Question 15 List 2 ways you might research new approaches to managing your budget.
1. Review operating procedures
2. Talk to existing suppliers

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. Benefits to the business
2. Costs
3. Explain the idea

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?

We must be careful that the cuts do not cause the level of service and product to fall because it can impact on
the long-term viability of the business.

Question 18 Name an accounting program you can use to help manage budgets.

An accounting program that we can use to help manage budgets are Xero, MYOB, and cashwhiz.

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 Imagine Education
Project

Course Code and Name: SIT40516 Certificate IV in Commercial Cookery

Unit Code: SITXFIN003
Unit Title: Manage finances within a budget

Assessment 2
Task 1
Read the following case study and answer the questions that follow:
Jo Swade imports vanilla pods for $8 per kg (including GST). He marks up the pods by 50% and estimates that
he will sell 5000 in January, and that this number will increase by 30% each month for the next two months.
On 1 January, Jo has $1000 in the bank.
His monthly outgoings (including GST) for operations are expected to be:
 Purchases Assume that Joe buys the exact number he sells each month
 Shop expenses $4000
 Wages $5500
 Rent $2000
 Other costs $4000
 Jo also intends to draw $2500 per month as living expenses
 In February, Joe intends to spend $10 000 on a new computer and shop fittings.

Prepare a cash budget for Jo for January to March, showing the amounts for each month and the totals for
the quarter
Jo Swade: Cash budget for three months ending 31 March
January February March Total
Cash in from operations
Kilos sold 5000 6500 8450 19950
Sale price X12 X12 X12
Cash from sales 60000 78000 101400 239400
Cash out for operations
Kilos purchased 5000 6500 8450 19950
Purchase price X8 X8 X8 X8
Cash for purchases 40000 52000 67600 159600
Wages 5500 5500 5500 16500
Shop expenses 4000 4000 4000 12000
Rent 2000 2000 2000 6000
Other costs 4000 4000 4000 12000

Total cash out for operations 55500 67500 83100 206100

Other payments
Drawings 2500 2500 2500 7500
Computer and fittings 10000
Total payments 58000 80000 85600 223600
Net inflow/outflow 2000 2000 15800 15800
opening cash at bank 1000 3000 1600

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 Closing cash at bank 3000 1000 16800 15800
Task 2

During the monitoring cycle you are required to undertake 2 of the following processes to inform
management of the actual budget:

(you clearly need to select these relevant for the performance of your budget; for example if your staffing
and rostering performs within the budget and service provisions are being met, then it would be unlikely that
you would need to reduce staff or cut rosters; if your budget is created on the best quotes received from
suppliers and the quality is perfect, then this aspect is likely not one that would be changed)

1. discussions with existing suppliers

2. evaluation of staffing and rostering requirements
3. evaluation of impact of potential roster changes
4. review of operating procedures
5. sourcing new suppliers

Attach details for each process you have undertaken clearly marked “TASK 2 – process: __________”.

Details for each process selected must include the following details:
1. Nature of the problem
2. Reason for undertaking the selected process
3. What did you do? Who was involved? What was discussed? What was agreed on? What was
achieved in the process?
4. What was changed?
5. How were any changes implemented?

(For example if you changed a roster, you need to provide the information why this was done, what the
changes will achieve in $ values for the budget, and attach the old and revised roster to this project)

TASK 2- Process 1:
1. Nature of the problem
Price is too expensive

2. Reason for undertaking the selected process

Cost are currently $8 kilo

3. What did you do? Who was involved? What was

discussed? What was agreed on? What was Negotiated with existing supplier owner, bringing
achieved in the process? price down, could not reach a new price

4. What was changed?

Looking for a new supplier

5. How were any changes implemented?

No charge-supplier could not bring the price down

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 TASK 2- Process 2:
1. Nature of the problem
Overstaff during the quiet days

2. Reason for undertaking the selected process

Have to pay $20 per hour for extra 3 staff for 6
hours in a quiet days.

3. What did you do? Who was involved? What was Meeting with staff to cut few hours and decrease
discussed? What was agreed on? What was their working days and putting them on call in case
achieved in the process? the occupancy goes higher.

4. What was changed?

Make roster and give shift according to the
occupancy.

5. How were any changes implemented?

Changes in the roster and kept them on call.

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Task 3

Identify any reports, which you need to complete during the 3-month budget cycle. Identify any reports,
which you need to complete during the 3-month budget cycle. In the table below, complete the due dates
and required details.

Type of report Frequency Due Date(s) Completed by

EXAMPLE monthly end week 4 (insert date) student (you)

e.g. Stock Take report end week 8 (insert date) A. Johns, supervisor

end week 12 (insert date) student (you)

Wages report monthly Daniel, Supervisor

End week 4 $5500
End week 8 $5500
End week 12 $5500

Other costs report monthly Daniel, supervisor

End week 4 $4000
End week 8 $4000
End week 12 $4000

rent report Monthly Daniel, supervisor

End week 4 $2000
End week 8 $2000
End week 12 $2000

Computer and fittings

Monthly Daniel, supervisor
report
End week 4 $10000
End week 8 $10000
End week 12 $10000

Computer and fittings End week 4 $4000

monthly End week 8 $4000 Daniel, supervisor
report End week 12 $4000

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 Marking Guide S NYS Comments
Provides a copy of the opening budget
Provides a copy of the closing budget
Provides a budget report for each fortnight
The performance of each category is identified
The variance for each fortnight is identified
The reasons for variance(s) are identified
Variances are communicated with colleagues/ supervisor
Actions are identified where suitable or applicable
Actions are explored and implemented as applicable
2 processes are selected to inform management of budget
The processes are suitable for identified budget variances or operational issues
Details are provided what entailed each process
The details for each process selected are complete
The changes investigated are relevant to improve budget performance
The parties involved are identified
Details for communication are provided
The agreed actions are provided
The changes as a result of undertaking process are outlined
The financial benefit/impact on the budget is explained
Where implementation of changes occurs, each process is explained
The type of reports to be completed by the business over the budget cycle are
identified
The frequency of reports is identified
The frequency for reports is documented and scheduled
Reports are completed as scheduled
A number of different reports were completed by student relevant to the
budget:
1. ______________________________
2. ______________________________
3. ______________________________
4. ______________________________
Reports or copies for reports are attached to the project
Result: Satisfactory | Not Satisfactory | Not Assessed

Name: ________________________
Student Declaration: I declare that I have been assessed in this unit, and I
have been advised of my result. I also am aware of my appeal rights. Signature: ________________________
Date: ____/_____/_____

Name: ___________
Assessor: I declare that I have conducted a fair, valid, reliable and flexible
assessment with this student, and I have provided appropriate feedback Signature: ________________________
Date: ____/_____/_____

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