ASSESSMENT TASK 2
Assessment Details
Qualification code FNS50215 Qualification
Name Diploma of Accounting
Unit Code FNSACC503 Unit Name Manage Budgets and forecasts Assessment Type Case Study
Instructions to the Candidates
Student must review
• Lesson materials provided in class
• Examples used in lessons.
Instructions to Students:
• This assessment is to be completed according to the instructions given by your assessor.
• You must attempt all the questions.
• Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.
• If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
• Please refer to the College re-submission and re-sit policy for more information.
• Copying or any kind of cheating is absolutely not permitted, if someone is found cheating or copying, will be debarred from the assessment and a disciplinary proceeding would begin.
• This assessment covers the following Performance Criteria
PC’s Covered: 1.1,1.2,1.3,1.4,2.1, 2.2, 2.3, 2.4, 3.1, 3.2, 3.3, 3.4, 4.1, 4.2
Assessment Description
This assessment tool is designed to gather evidence on your knowledge as well as abilities to prepare, document and manage budgets and forecasts, and encompasses forecasting estimates and monitoring budgeted outcomes. In addition, it collects evidence on key foundation skills outlined in unit of competency details. Your Trainer/Assessor will go through the unit of competency at the very beginning of this unit explaining each element, performance criteria, foundation skill, performance evidence, and knowledge evidence that you will be assessed on via this assessment tool. You can find more information at https://training.gov.au/Training/Details/ FNSACC503
CASE STUDY
Assessment Instructions
On the following pages you will find the various types of information.
Students are to read the information provided in the questions prior to answering the questions. Students will be allocated time to complete this assessment in class under the supervision of the Trainer/ Assessor.
If you are not sure about any aspect of this assessment or would like to discuss your particular needs, please speak to your assessor. Should you have a questions notify the Trainer/Assessor. The Trainer/Assessor will attend to you as soon as possible.
You must successfully complete all the questions included in this assessment tool.
This assessment consists of a comprehensive case study and followed by the several questions which need to be answered. Please answer all the questions or as instructed by your trainer / assessor. Students are permitted to use non-programmable calculators.
These task / exercises form part of your assessment for this unit; therefore it is essential that you complete these exercises.
When you complete each task / exercise, these need to be handed into the trainer to be checked.
Key requirements
To be able to be marked competent in any unit you must:
• Submit all pieces of assessable work. If you do not submit any work you will be unable to gain competency
• Submit all work on or before the due date. Any work submitted after the due date, without an approved extension will be unable to gain competency
• Any work submitted after term will not be marked and you will be assessed as not yet competent
• All work is to be done to a high quality in terms of both presentation and content. This includes correct referencing, grammar, punctuation and name/student number placed in either header or footer.
If you hand in your work to your trainer and it is not yet competent you have one further opportunity to resubmit. Your trainer will advise you of new submission date and the areas of improvement to be made.
If you are found cheating, you will automatically get a not yet competent on your assessment. If you are found to have cheated, copied work from others either in class or during assessment, you will either to repeat the unit or be given a new reassessment task. You will be reported for this action and you may also have to pay a financial penalty.
Cheating is where any students use:
• Notes in a test
• Copies another person’s work
• Use unauthorized material in test
You must write your work in your own words, you are being assessed on your own thoughts and knowledge. All work is to be typed and handed directly to your trainer. You have to attach a completed assignment sheet to your work that clearly shows your name and your student Id number as well as your trainer’s name.
Please keep a copy of any work you submit. It is your responsibility to re – submit any work requested at any time.
You do have the right to appeal any assessment decision made by the Strathfield college trainer if you:
• Believe that the assessment is invalid and /or Feel that the process was invalid, inappropriate or unfair.
Case Study (instructions)
This assessment requires you to determine the requirements to undertake budgeting, financial forecasting and reporting requirements for an organization.
This assessment task is about preparing budgets, forecasting estimates and documenting budgets. While preparing budgets and forecast make sure the following points:
• Budget Data are presented in a format that is easily understood and appropriate to budget reporting
• All budgetary Reports are completed within timelines provided by your trainer and distributed (Submitted ) for specified periods and projects
Task 2.1
Maan Snack Bar wishes to prepare a cash budget for July, August and September. Your job as the manager is to prepare this budget and the accompanying analysis and action plan for the owners.
• Complete the cash budget below using the information following.
Information provided to complete the cash budget. Use only whole dollars.
• The closing balance for June is $10,500.
• Cash sales for July are $11,000, August are $11,500 and September $12000.
• Cash receipts are 8% of the cash sales.
• Other income is from merchandise and is 2.5% of September sales only.
• Cash payments are made every month and are 27% of cash sales.
• Payments to creditors are made every month and are 13% of total receipts.
• Salaries and wages are paid every month and are $9,335.
• Interest payments are made every month and are $1,177.
• Operating expenses are $1,223 for July, $1223 for August and $1,322 for September. Loan repayments are made every month and are $3,335.
Action Plan
1) Complete a detailed written report (minimum half a page) that includes all your ideas to increase cash sales
2) How will you reduce the cash payments? Explain your methods in writing and include calculations that support your reductions.
Analysis
1) What is the cash position of the Maan Snack Bar at the end of each month?
2) What is likely to happen if the cash position of the Maan Snack Bar continues on this path? Explain in detail.
3) What could be the objectives of preparing organizational budgets? How these are related with organisation’s aims and objectives.
4) While preparing the budgets for Maan’s snack bar, who can be other stakeholders? Also briefly list the consulting methods, you may use.
Task 2.2
You are given the following information for Maan trading research service for the coming financial year 2019
Required:
A. Prepare annual budgeted expense for coming year 2019.
B. How the expenditure milestones are set up?
Task 2.3
Streama sells two products, Apple and Oranges.
• Sales for July were 2,000 units of Apple at $20 per unit.
• Sales for July were 8,000 units of Oranges at $40 per unit.
In August, the sales volume of Apple is expected to decrease by 4% and the sales volume of Oranges is expected to increase by 16%. The selling price of Apple is expected to increase by 10% and the price of Oranges is expected to decrease by 6%. Sales commissions paid are 2% for Apple and 4% for Oranges.
Required:
A. Prepare a Sales Budget for August, showing the expected sales and commissions paid by product and in total.
B. While preparing budgets or deciding budgeted sales, revenues, expenditure, selling prices etc., every business establishes some assumptions and parameters to maintain accuracy, relevance and compliance. What can be those assumptions or parameters?
Sales Budget of Stream a for August

Task 2.4
Choose any organization of your choice, it can be your workplace, if you do not work take Strathfield College, list at least three financial risk for your chosen business. Now do some research and suggest how those financial risks can be controlled. You may choose following template:
Task 2.5
A. For each of the following financial ratios or “KPI's” (Key Performance Indicators), indicate how each is calculated and what specific information you can gather about your business’ financial performance.