BSBMGT803

Q1: How would you link a budget development to a corporate strategy?

Q2: What is a financial contingency plan?

Q3: How can you use activity ratios?

Q4: What is the objective of a cost benefit analysis?

Q5: Tara is the manager of Great Burgers. She's reviewing the results for the recent quarter, and
notices that actual revenues are not the same as the budgeted revenues. She investigates further
and finds that sales of FlippyDoo Burgers totaled 7,260 burgers, versus a budgeted revenue of
7,000. What type of variance is this?
    (a) Unfavourable quantity variance
    (b) Favourable quantity variance
    (c) Favourable revenue variance
    (d) None of the above.

Q6: Tara calculates that the average price per FlippyDoo sold during the quarter was $3.25,
compared to a budgeted price of $3.40. What type of variance is this?
    (a) Unfavourable revenue variance
    (b) Favourable revenue variance
    (c) Unfavourable price variance
    (d) None of the above

Q7:
The total FlippyDoo revenue for the quarter was $23,595 versus the budgeted revenue of $23,800.
How should Tara describe this variance?
    (b) An unfavourable revenue variance
    (c) An unfavourable revenue variance resulting from a favourable quantity variance and a
favourable price variance
    (d) An unfavourable revenue variance resulting from an unfavourable price variance and a
favourable quantity variance
    (e) An unfavourable revenue variance resulting from an unfavourable price variance and an
unfavourable quantity variance

Q8:
For output of 1 – 10,000 units fixed costs are $50,000. Thereafter they step-up to $80,000.
For output up to 15,000 units variable costs are $20/unit. Units in excess of this have variable
costs of $24/unit.
Selling price per unit = $30
What would be the budget at a sales and production level of 16,000 units?
Sales
Variable production costs
Contribution
Fixed costs
Profit
Q9:
Identify ways that you can align your budget with your business strategy. List and describe three.

Q10: What is Microeconomics?

Q11: Identify two Macro Environment Factors.

Q12:
One of the most important areas of your finances you should review is your profitability. What
would this include?

Q13:
Every business has three primary financial statements: the Balance Sheet, the Cash-flow
Statement and the Income Statement. Describe each.

Q14:
Why is Management Accounting Is Important in Decision-Making?

Q15: What can financial scenario modelling be used for?

Practical Task 1
Assessment description
This assessment task consists of preparing a report for an organisation of your
choice for analysing and reporting financial information to check the financial health
for a business.The detail of the assessment task to be performed are given below in
the procedure.
Procedure
    1. Select the organisation of your choice.
Discuss:
    2. Financial objectives of your organisation and resources required to achieve
those objectives.
    3. How financial forecast has been made by the company
    4. Financial contingency plans made by the company
    5. Any two financial reports being used by the company
    6. Macro and micro economic factors that impact on enterprise financial
capabilities
    7. How does the company review and report financial performance of their
business?
Note: Use the below provided file to answer all the questions. You are required to
cover the above-mentioned points.
Specifications
You must:
    • Meet with your assessor to clarify the questions if required
    • Provide suitable examples where necessary
    • Give reference to information you have gathered from any additional sources
    • Submit your notes.
Your assessor will be looking for your ability to:
    • Negotiate, monitor and review an enterprise financial strategy based on valid
data analysis
    • Use and analyse financial and economic information to achieve enterprise
objectives and maximise returns on financial resources
    • Analyse and use budget systems and reporting processes including:
    • Calculating balance sheet ratios
    • Calculating income statement ratios
    • Calculating cash flow statement ratios
    • Monitoring income and expenditure
    • Forecasting expenditure
    • Developing contingency plans
    • Adjusting budgets
    • Review and report on financial performance
    • Use financial data to support strategic decision making including:
    • Modelling financial scenarios
    • Conducting a cost benefit analysis
    • Consulting with financial advisers
    • Agreeing on performance indicators.
 CASE STUDY:
I HAVE ATTACHED A SEPARATE FILE WHERE YOU NEED TO READ THE
CASE AND ANSWERS THE QUESTION DOWN BELOW.
Assessment description
This assessment task consists of case study analysis. Students are required to
understand the given case study and answer the questions asked at the end of the
case study.
Procedure

1. Read and understand the given case study(Check Attached file).

2. You may consult your trainer for the any confusion. However, you may not
expect any direct answer from your trainer.
3. Answer the questions asked.

Discuss:
Specifications
You must:

 Meet with your assessor to clarify the questions if required

 Provide suitable examples where necessary
 Give reference to information you have gathered from any additional sources

 Submit your notes.

Q1:Discuss how you can apply cost-benefit analysis in the given scenario. What would
be the benefits of such analysis?
Q2:What are the benefits of consulting with financial advisors in making financial
decisions?
Q3:Calculate any two financial ratios that you can use in the given case study. Discuss
the implications of the ratios that you have calculated.
Q4:Discuss how you can collect, analyse and report data on the use of financial
resources.
Q5:Discuss the performance indicators for the company in the given case study