Assessment task 2 Skills and Performance Activity Skills and Knowledge activity (Q A) Objective To provide you with an opportunity to show you have the required knowledge for this unit The answers to the following questions will enable you to demonstrate your knowledge of Types of financial records bank deposit documentation bank statements banking summaries business activity statements cheque books credit card transaction statements invoices journal entries labour and wages reports merchant statements merchant summaries transaction reports Types of budgets cash budgets cash flow budgets departmental budgets event budgets project budgets purchasing budgets sales budgets wage budgets whole of organisation budgets Factors for consideration in the preparation of financial and statistical reports cash flow commercial account activity commission earnings covers and financial return daily, weekly and monthly transactions expenditure income occupancy rates and financial return performance of department, project and or products and services sales performance sales returns staff costs stock levels variance in income and or expenditure wastage yield Use, contents of and formats for budgets financial reports statistical reports Budget terminology Specific industry sector and organisation use of budgets to control costs and enhance profitability importance of budget control techniques for maximising budget performance financial reporting procedures and cycles features and functions of accounting software programs used to manage budgets Answer each question in as much detail as possible, considering your organisational requirements for each one All answers will vary depending on the learner and the organisation they work for but the learner should be able to answer each question competently In your own words, explain what each of the following financial records show Invoices Labour wage reports Credit card transaction statements Explain why having dedicated budgets for specific departments and projects can be useful (as opposed to only relying on a budget for the whole organisation) Answer Any changes that are made to the budget should be recorded so that future budgets can be made based on this information, rather than using the outdated information from the start of the year A new department head may have different ideas and ways of the running the department and may need more budget in some areas and less budget in others Why is it important to consider sales performance when monitoring budgets and preparing financial reports Ans It is important to consider sales performance when monitoring budgets and preparing financial because of these reasons Expenses Revenue Cost What information is contained in the following document types Budgets Financial reports Statistical reports Explain what the following budgetary terminology means Revenue Financial commitment Debt Why is it important to promote budget control, and how can this enhance the overall profitability of your organisation Performance activity Objective To provide you with an opportunity to demonstrate the required performance elements for this unit A signed observation by either an approved third party or the assessor will need to be included in this activity as proof of completion This activity will enable you to demonstrate the following performance evidence Manage a budget for a business over a three month period that meets the specific business needs Undertake at least two of the following to inform management of the above budget discussions with existing suppliers evaluation of staffing and rostering requirements evaluation of impact of potential roster changes review of operating procedures sourcing new suppliers Monitor income and expenditure and evaluate budgetary performance over the above budgetary life cycle Complete financial reports related to the above budget within designated timelines and using correct budget terminology Answer the activity in as much detail as possible, considering your organisational requirements All activity answers will vary depending on the learner and the organisation they work for but the learner should be able to demonstrate their competency in the unit requirements As a workplace activity or simulated workplace activity (as directed by the assessor) Create a budget for an event or project that will last for three weeks or more Throughout this period, you must show that you can create, monitor, and control the budget by doing the following Show that you can work with colleagues to establish requirements and priorities (including staffing requirements and stock requirements) Use financial records to monitor expenditure and income on a regular basis Identify any variances and deviations, and react to them you may need to adapt the budget Complete financial reports to ensure control of finances, and to update others on the budgets status

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Assessment task 2 - Skills and Performance Activity Skills and Knowledge activity (Q & A) Objective: To provide you with an opportunity to show you

Assessment task 2 - Skills and Performance Activity

Skills and Knowledge activity (Q & A)

Objective: To provide you with an opportunity to show you have the required knowledge for this unit.

The answers to the following questions will enable you to demonstrate your knowledge of:

Types of financial records:

bank deposit documentation
bank statements
banking summaries
business activity statements
cheque books
credit card transaction statements
invoices
journal entries
labour and wages reports
merchant statements
merchant summaries
transaction reports

Types of budgets:

cash budgets
cash flow budgets
departmental budgets
event budgets
project budgets
purchasing budgets
sales budgets
wage budgets
whole of organisation budgets

Factors for consideration in the preparation of financial and statistical reports:

cash flow
commercial account activity
commission earnings
covers and financial return
daily, weekly and monthly transactions
expenditure
income
occupancy rates and financial return
performance of department, project and/or products and services
sales performance
sales returns
staff costs
stock levels
variance in income and/or expenditure
wastage
yield

Use, contents of and formats for:

budgets
financial reports
statistical reports

Budget terminology
Specific industry sector and organisation:

use of budgets to control costs and enhance profitability
importance of budget control
techniques for maximising budget performance
financial reporting procedures and cycles
features and functions of accounting software programs used to manage budgets

Answer each question in as much detail as possible, considering your organisational requirements for each one.

All answers will vary depending on the learner and the organisation they work for but the learner should be able to answer each question competently.

In your own words, explain what each of the following financial records show:

Invoices
Labour/wage reports
Credit card transaction statements.

Explain why having dedicated budgets for specific departments and projects can be useful (as opposed to only relying on a budget for the whole organisation).

Answer:

Any changes that are made to the budget should be recorded so that future budgets can be made based on this information, rather than using the outdated information from the start of the year.
A new department head may have different ideas and ways of the running the department and may need more budget in some areas and less budget in others.

Why is it important to consider sales performance when monitoring budgets and preparing financial reports?

Ans:

It is important to consider sales performance when monitoring budgets and preparing financial because of these reasons:

Expenses
Revenue
Cost

What information is contained in the following document types:

Budgets
Financial reports
Statistical reports?

Explain what the following budgetary terminology means:

Revenue
Financial commitment
Debt.

Why is it important to promote budget control, and how can this enhance the overall profitability of your organisation?

Performance activity

Objective: To provide you with an opportunity to demonstrate the required performance elements for this unit.

A signed observation by either an approved third party or the assessor will need to be included in this activity as proof of completion.

This activity will enable you to demonstrate the following performance evidence:

Manage a budget for a business over a three-month period that meets the specific business needs
Undertake at least two of the following to inform management of the above budget:

discussions with existing suppliers
evaluation of staffing and rostering requirements
evaluation of impact of potential roster changes
review of operating procedures
sourcing new suppliers

Monitor income and expenditure and evaluate budgetary performance over the above budgetary life cycle
Complete financial reports related to the above budget within designated timelines and using correct budget terminology

Answer the activity in as much detail as possible, considering your organisational requirements.

All activity answers will vary depending on the learner and the organisation they work for but the learner should be able to demonstrate their competency in the unit requirements.

As a workplace activity or simulated workplace activity (as directed by the assessor):

Create a budget for an event or project that will last for three weeks or more. Throughout this period, you must show that you can create, monitor, and control the budget by doing the following:

Show that you can work with colleagues to establish requirements and priorities (including staffing requirements and stock requirements)
Use financial records to monitor expenditure and income on a regular basis
Identify any variances and deviations, and react to them you may need to adapt the budget
Complete financial reports to ensure control of finances, and to update others on the budgets status.