Q1.Once financial systems and procedures are in place, it is essential that they are regularly monitored. The following statements are:

True False

1. As a manager or business owner, you need to be aware of the organisation's policies and procedures, as well as whether they are being followed and whether they are still applicable.

2. Discussions with staff regarding applicability and currency of procedures should be avoided as their opinions often do not consider the business factors and compliance requirements.

3. Staff should be involved as they have the day-to-day knowledge of what may be going wrong or where issues may occur in the future.

4. If any systems are updated, new procedures will have to be written which are applicable to the new system.

5. Failure to check the financials on a regular basis can mean that what could have been a small problem corrected simply, can escalate into a major issue that is harder to fix.

6. By setting budgets, monitoring performance against budgets and taking corrective action when and where necessary, you can significantly increase the chances of business success.

7. In large organisations, the business owner will have other staff to rely on and hold responsibility for the budget for their area.

Q2. What is the purpose of each of the following reports?

1. Sales Reports.

2. Stock Reports

3. Variance Reports

4. Wastage Reports

5. Purchase Summary Report.

6. Expenditure Reports (Labour and Non-Labour)

7. Budget Reports

Q3. Pricing decisions are a crucial part of running a business. There is a number of pricing strategies available and the correct strategy must be determined for each product or service. What are the principles of the following strategies?

1. Premium Pricing

2. Penetration Pricing

3. Economy Pricing

4. Price Skimming

5. Psychological Pricing

6. Product Line Pricing

7. Promotional Pricing

Q4. Explain the principles of the Average spend method for calculating a pricing structure.

Q5.What is the principle of using the cost-based to calculate prices in an establishment?