Assignment front sheet

Qualification Unit number and title

HND Business 2 – Managing Financial Resources & Decisions

Student name Assessor name

Ms. Shaheen Sultana

Date issued Completion date Submitted on

04/06/2017 19/06/2017

Assignment title 3- Financial Decision Making

Learning Outcome Assessment In this assessment you will have the Task Evidence
Criteria opportunity to present evidence that no. (Page no)
shows you are able to:
P3.1 Analyse budgets and make appropriate 1
Learning Outcome 3: decisions
P3.2 Explain the calculation of unit costs and make 1
Be able to make financial pricing decisions using relevant information
decisions based on
financial information
P3.3 Assess the viability of a project using 1
investment appraisal techniques

Learner declaration

I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.

Student signature: Date:

Assignment brief (3)

Unit number and title 2 – Managing Financial Resources & Decisions

Qualification HND Business

Start date 04-06-2017

Deadline/hand-in 19-06-2017

Assessor Ms.Shaheen Sultana

Assignment title 3- Financial Decision Making

Purpose of this assignment
In completing this assignment, you will how financial information is recorded
and how to use this information to make decisions for example in planning and
budgeting. Decisions relating to pricing and investment appraisal are also
considered.
Task 1 & TASK2 & 3 (LO AC 3.1,3.2,3.3 )

TASK 1
Analyse Budgets and Make appropriate decisions with different practical
examples”.
This task provides evidence for grading criterion P3.1

TASK 2
Explain the Calculation of unit cost and make Pricing decisions using following
information :
Al Ghandi Company is a manufacturer of industrial machines and the following data is
available for the first half of the year 2011.
Cost of material AED 20,000
Wages paid AED 30,000 (AED 15,000 [half was due at the start of the year])
Other factory Expenses AED 20,000
Rent of Factory AED 10,000 (12 months therefore AED 5,000)
Marketing & other expenses AED 4,000
Provided that 1000 units were made, what is the unit cost in the first half of the year? The
selling price is AED 2,000 per machine; calculate the profit made during the period.
This task provides evidence for grading criterion P3.2. , M3.
--------------------------------------------------------------------------------------------------------------
Task 3

Assess the Viability of the given project using investment appraisal techniques
Scenario
The increase in sales for KFC’s Shrimp meal had been unexpected. Demand
increased for shrimp sandwich and wrap produced by the firm. The research
and development of KFC suggested that this was not a short-term fad and
forecasts of future sales were healthy. The Board of directors accepted the
recommendations and wanted to invest in a new piece of equipment for the
production line that would automate some of the work allowing the current
staff to be utilised elsewhere, it would also speed up the production and meet
expected demand.
Four possible equipment’s have been identified:
Machine 1
A Japanese firm producing a high precision piece of equipment with software
allowing different production runs to be catered for.
Machine 2
The same equipment without the software option secured from a firm in
Taiwan.
Machine 3
A different machine manufactured in India, significantly cheaper.
Machine 4
Another machine with a different specification but which is suitable for the job
required, produced by a firm in the United States.
The costs associated with each machine are as follows:

Table A
Initial Cost Machine 1 Machine 2 Machine 3 Machine 4
AED 550,000 AED 550,000 AED 290,000 AED 460,000
Expected Cash Flow (AED)
Year 1 20,000 50,000 15,000 30,000
Year 2 75,000 175,000 80,000 95,000
Year 3 125,000 200,000 120,000 150,000
Year 4 250,000 175,000 100,000 210,000
Year 5 200,000 70,000 60,000 300,000
The firm believes that the likely discount rate will vary from between 4.5% and
6%. The discount tables for selected rates are shown below:
Table B
Rate in percentage
YEAR 4.5% 5.0% 5.5% 6.0%
1 0.9569378 0.9523810 0.9478673 0.9433962
2 0.9157300 0.9070295 0.8984524 0.8899964
3 0.8762966 0.8638376 0.8516137 0.8396193
4 0.8385613 0.8227025 0.8072167 0.7920937
5 0.8024510 0.7835262 0.7651344 0.7472582
1. Your task is to present an argued case for one of the machines that the
firm should invest in.
2. You should use at least two appropriate methods of investment appraisal
in your presentation and you should highlight relative costs and benefits
of each method.
3. Advise the Board on other factors that will need to be considered in taking
the decision in addition to the quantitative analysis above.

This task provides evidence for grading criterion P3.3, D3.

A pass grade is achieved by meeting all the requirements listed in the assessment criteria. Additionally
you may achieve higher grades as below.
To achieve a Merit all of the Pass criteria need to be met, then the tutor will assess whether you have met
the Merit criteria. Each of the Merit criteria must have been met at least once with in the assignment.

Indicative characteristic’s Guidance

In order to achieve a
merit the learner must
achieve all three merit
descriptors:

M1: identify and apply

strategies to find appropriate
solutions
M2: select/design and apply
appropriate
methods/techniques
M3: present and  Coherent ,logical  Explain the Calculation of unit cost
communicate appropriate development of and make Pricing decisions using
findings principles/concepts following information of
for the intended Al Ghandi Company is a
audience manufacturer of industrial
machines.
 Learner should solve the problem
by using different range of
techniques.
In order to achieve a Indicative characteristic’s Guidance
distinction the learner must
achieve all three merit
descriptors in addition to
these distinction descriptors:
D1: use critical reflection to
valuate own work and justify
valid conclusions
D2: take responsibility for
managing and organising
activities
D3: Demonstrate  Ideas have been
convergent/lateral/creative generated and - Assess the Viability of the given
thinking decisions taken project using investment appraisal
techniques to suggest the steps to
increase in sales for KFC’s Shrimp
meal

Appropriate structure i.e. formal report

and NOT essay style and approach has
been used
 Technical /strategic language
accurately used throughout all
answers
 Evidence Evidence
Summary of evidence required by student
checklist presented

Task 1 & Portfolio of evidence

Task 2,3

Student Guidelines

1. You should write this assignment in an informal report format and should respond to each task
directly and in turn. You should produce a coherently written document i.e. „bullet points‟ alone or other
„note‟ format will not be acceptable as the final submission. You should also underpin your analysis with
relevant references to theory whilst at the same time ensuring that you write your assignment in your
own words as far as is possible.
You should refer to the „assessment criteria for a pass grade‟ to ensure that each criterion has been
covered in your responses to the assignment tasks.
2. You must ensure that the submitted assignment is all your own work and that all sources used are
correctly attributed. Penalties apply to assignments which show evidence of academic unfair practice.
(See the Student Handbook which is in the Induction Area). Please also refer to the „Guide to Unfair
Practice in Assessment‟ on the module page.
3. You MUST underpin your analysis and evaluation of the key issues with appropriate and wide ranging
academic research and ensure this is referenced using the Harvard system. The „My Study Skills‟ area
contains the following useful resources; Study Skills Guide (containing a Harvard Referencing section) and
a Harvard Referencing Interactive Tutorial. You must use the Harvard Referencing method in your
assignment.
4. You should use diagrams and tables of figures where appropriate ensuring to reference their source
using the Harvard Referencing method.
5. It is advised that you write your informal report within approximately 3000 words in order for your
research and summarising skills to be developed, and for effective time management. You are required to
ensure that the assignment addresses all of the assessment tasks .There is no penalty for being over the
suggested word count, however, in the interests of good academic practice, assignments submitted
with excessive word counts (e.g. over 3500 words) may be returned to students and asked to
be reduced before marking.
The word count excludes the title page, reference list and appendices. Where assessment questions
have been reprinted from the assessment brief these will also be excluded from the word count. ALL
other printed words ARE included in the word count. Printed words include those contained
within charts and tables.

6. Your assignment should be submitted as a single document. For more information please see the
“Guide to Submitting an Assignment” document available on the module page.
Achievement Summary

Qualification HND Business Assessor name Ms.Shaheen Sultana

2 – Managing Financial
Unit Number and Student name
Resources & Decisions
title

Criteria To achieve the criteria the evidence must Comments Achieved

Reference show that the student is able to: (tick)
3.1 Analyse budgets and make appropriate decisions

3.2 Explain the calculation of unit costs and make

pricing decisions using relevant information

3.3 Assess the viability of a project using investment

appraisal techniques

M2 select/design and apply appropriate

methods/techniques
M3 present and communicate appropriate
findings
D1 use critical reflection to valuate own work and
justify valid conclusions
D2 take responsibility for managing and
organising activities
D3 demonstrate convergent/lateral/creative
thinking

Internal Verifiers Decision :

Internal verifier s’ signature Assessor’s signature

Assignment Feedback
Formative Feedback: Assessor to Student

Action Plan

Summative feedback

Feedback: Student to Assessor

Assessor signature Date

Student signature Date