AHCBUS408 Operate within a budget framework Assessment Task

 

Assignment Detail:-

• Number of Words: 3500

 

Assessment Methods

• Assessment 1: Written Test
• Assessment 2: Case Study
• Assessment 3: Written Assignment

 

 

Assessment Method 1: Written Test

1. What budget planning information might you gather to participate in the formulation of a budget?
2. What sources of information might you use to gather budget planning information?
3. Why is it important to ensure that priorities are in relation to the organisation’s vision and plans?
4. List at least three (3) of the range of methods that can be used to identify the income sources of the organisation.
5. Outline the information you would obtain to review expenditure for existing operations.
6. List three (3) examples of the overhead costs you might identify when reviewing overhead expenditure?
7. What are the typical types of expenditure that will need to be estimated for new initiatives and expansions?
8. Discuss the details that are to be included in requests for budget variations to suit organisational needs.
9. What are two (2) examples of budget delegations you might arrange expenditure within?
10. Why is it important to record the transactions?
11. Explain how to compare actual sales and expenditure to the enterprise budget.
12. What will you need to do if you identify issues when checking that the financial reports to ensure operations are within forecast limits?
13. What are the three (3) main reasons that expenditure will need to be adjusted in order to meet the financial targets?
14. Outline the information to be included when reporting actual and potential variations in budgeted income.
15. What is it necessary to consider when developing recommendations to address budget variations?

 

Assessment Method 2: Case Study

Acutts’ Family Farm

Scenario 1

Business ownership: J.A. and S.G. Acutt (partnership) Box 1278

Pakenham VIC 3810 Land ownership: S.G. Acutt (sole owner)

 

Section 1 – Natural resources (climatic, soil and topographic suitability)

	Physical characteristics			Description
	Soil			A uniform sandy loam overlying a clay loam
	Area			65 ha.
Vegetation			25 ha cleared and planted to horticultural crops Division·         Citrus – 14 ha o    Navels – 5 ha o    Valencia – 10 ha o    Mandarins – 2 ha o    Grapefruit – 2 ha ·         Wine grapes – 6 ha ·         Remaining 40 ha natural bush
Water			Water is provided through Water Allocation Framework, Victoria. The water allocation quota is adequate but does not allow for expansion under the present system as volumetric allocation under Water Resources Management Act 2005. Irrigation is byoverhead sprinklers on the grapes and tree sprinklers for the citrus.
Topography			There is a slight slope to the property but there is minimal risk of erosion. Drainage problems are increasing on lower-lying lands. Frost has also damaged fruit.
Plantings			The citrus plantings have been staggered with the Mandarin and Grapefruit past their prime. Neither the Valencia nor Navelsshould require replacements in the next 8 years
Improvements			A 3 bedroom house with large workshop area and small packing shed

 

Section 2 – Operational considerations

Enterprise	Activities	Income
Valencia	Harvest November to April	Payments lagged by 1 monthand evenly distributed over the 6 months
Navels	Harvest July to September	Payments lagged 2 months and evenly distributed over the 3 months
Grapes	Harvest January to April	Same month payments with 20% of total in both January and April and, 30% in each ofFebruary and March

Food Processing

Even income in all months except June and October

 

Section 3 -Marketing (macro- and micro-economic conditions, proximity to markets, distribution and logistics)

Distance from Melbourne	60 km
Distance from Dandenong (nearest town)	30 km
Macro-economic conditions	·         Weak dollar relative to US has increased Navel export demand·         Huge Grapefruit and Mandarin plantings overseas flooding the market·         Overseas market expanding for Australian wines·         Interest rates lowest in years @ 6.5% ·         Trade deficit at highest rates in years putting upward pressure on interest rates
Micro-economic conditions	·         Consumer spending and household income at highest levels for 10 years in state·         Growing wine and tourism markets·         Increasing awareness of the need for indigenous trees, shrubs and flowers amongst urban population·         Home processed food market increasing amongst busier, more sophisticated urban populations
Distribution networks	·         Dandenong and Melbourne market growing in popularity·         Big demand for specialty goods from retailers·         Good marketing and growth of local ‘Wine, Fruit and preserves’ tours and tastings.
Future expansion	·         Grow at least 5 new type of vegetables and fruits·         Reduce the labour cost by 20%·         Increase sales by 10%

 

Assessment Tasks

Task 1

Identify at least 2 priorities, in relation to the organisation’s vision and plans. Record these

priorities.

Task 2

Identify, and record, the sources of income listed in the above financial records and at least two new sources of income.

Task 3

Reviewed the budgeted income and expenditure and compared to actuals.

Task 4

Estimate the expenditure for new initiatives and expansion. Record these estimates. Request budget variations to suit the organisational needs. Document this request.

Task 5

Compare the actual sales and expenditure figures to the enterprise budget. Provide this comparison.

Task 6

Check the financial reports to ensure the operations are within the forecast limits, adjusting the expenditure to meet the financial targets, as required. Record expenditure adjustments.

Task 7

Record and report the actual and the potential variations in the budgeted income.

Task 8

Develop, and document, recommendations to address the budget variations.

 

Assessment Method 3: Written Assignment

Task 1

List the categories of income and expenditure might you need to consider for budgeting.

Task 2

Briefly discuss the procedures used for budgeting.

Task 3

What templates are used for budgeting?

Task 4

Identify and explain the taxation and accounting requirements that are applicable to recording financial transactions.

Task 5

List the mechanisms used for costing and forecasting.

Task 6

Explain the analyses and records used for cash flow.

Task 7

List the types of recording systems are associated with budget frameworks? Discuss each identified.

Task 8

List the records would you obtain and preserve relating to receipts and expenditure.

Task 9

Explain work reports.

Task 10

Identify and discuss the factors that impact upon the timing of sales and purchases

 

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