KII5095 Business financial management Assessment 1

KINGSFORD
INTERNATIONAL
INSTITUTE

KII5095
BUSINESS FINANCIAL
MANAGEMENT ASSESSMENT 1
KII5095 Business financial management Assessment 1

Assessment Information
Welcome to your Assessment 1 for KII5095 Business Financial Management!
This Assessment is where you will write all your responses for the knowledge questions.

Unit/s of Competency Covered in this subject

SITXFIN010 Prepare and monitor budgets

These tasks have been designed to help you demonstrate the skills and knowledge that you have learnt during
your course.

Please ensure that you read the instructions provided with these tasks carefully. You should also follow the
advice provided in the Hospitality Works Student User Guide. The Student User Guide provides important
information for you relating to completing assessment successfully.

This subject has the following two assessments:

Assessment 1 – Knowledge Questions:
There are eight (8) questions that will provide us with evidence of your general knowledge of tools,
documents, processes, legislative context in relation to the processes used in operational planning and
budgeting. The questions may have sub sections all of which are mandatory and must be answered
accurately.

This assessment is completed in your own time and by a submission date provided by your Assessor. You
may use support material in the development of your responses, but you must indicate the source. In
addition, you must not ‘cut and paste’ content from your source, rather, use your words, unless it is a
direct quote.
Assessment 2 – Project
You will complete a number of tasks that will provide us with evidence of your skills with developing a
budget. These tasks will be based on your role of Finance Specialist in a simulation with a hotel.

To Achieve Competence
To be deemed competent for this unit, you will need to meet the following requirements:
 complete all of the questions and tasks listed in this assessment
 meet all the requirements listed in this assessment
 your responses to the questions and tasks must be relevant, accurate and specific
 submit your completed Assessment to your Assessor within the set timeframes
 your work must be in your own words
 where you use an external source of information, you must provide citation.
Resources required to complete this assessment:
 Access to MS office and internet

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KII5095 Business financial management Assessment 1

ASSESSMENT COVERSHEET
Unit:
Course Name:
Assessment Tool: Assessment 1

Student must fill this section:

Student Name:

Student ID:

“I give my permission for my assessment material to be used in the auditing,

Privacy Release Clause:
assessment validation & moderation Process”
“I declare that:
 The material I have submitted is my own work;
 I have kept a copy of all relevant notes and reference material that I used in
Authenticity Declaration: the production of my work;
 I have given references for all sources of information that are not my own,
including the words, ideas and images of others.”

 All work is to be entirely of the student.

 Read the instructions for each question very carefully.
 Be sure to PRINT your FULL name & LAST name in every place that is provided.
 Short questions must be answered in the spaces provided or follow the word limits as instructed.
 For those activities requesting extra evidence such as: research reports, ESSAY reports, etc. The student must attach its
own work formatted in double space, Arial 12 pts.
 All assessment tasks must be addressed correctly in order to obtain a competence for the unit of competency.
 If the Student doesn’t understand the assessment, they can request help from the assessor to interpret the assessment.

All assessments must be submitted online. Login to www.kiionline.edu.au and follow the subject link to submit your assessments.
Note that the hard copy of the assessments will not be accepted.

Assessment Completion Status

Assessor’s
Attempt Satisfactory Non-Satisfactory Date
Signature

Initial attempt  

2nd attempt/Re-
 
assessment

Feedback to student:

“I understand all the above rules and guidelines for the assessment”

Full Name Signature Date (dd/mm/yyyy)

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KII5095 Business financial Management Assessment 1

Pre-assessment Checklist
Your assessor will go through the assessment for this unit. It is important that you understand this assessment before
taking on the questions and tasks. To confirm that you have been given this overview, we ask you to complete the
following Pre-Assessment Checklist.
You are required to carefully read each checklist item provided below and tick either ‘Y’ to confirm your
understanding or ‘N’ if you disagree. In case you disagree with an item, please provide your reason under the
‘Comments’ column.
When you have done this, we ask you to sign this Pre-Assessment Checklist. This acknowledges that your
Trainer/Assessor has discussed all of the information with you prior to undertaking this assessment.

Pre – assessment Checklist Comments

Y N I, the student, understand the purpose of the assessment.

I understand when and where the assessment will occur, who will
Y N assess and in what format the assessment will be submitted.

Y N I understand the methods of assessment.

Y N I understand what resources are required to complete this assessment.

I understand the performance level required for each assessment

Y N event.

I understand that it must be my own work. I have been explained and

Y N understand the serious consequences in case this work is found
plagiarised.

Y N I understand the process if I am deemed not yet competent.

Y N I understand the feedback process and the appeals process.

The assessor has discussed with me if I have any special needs and if
Y N so what arrangements have been made.

Student Full Name Student ID Student Signature Date

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KII5095 Business financial Management Assessment 1

Assessment Event 1 – Knowledge Questions

The information contained in this section lists the questions that you will need to develop a written response. These questions are
theoretical and provide evidence of your understanding of tools, documents, processes, and legislative context in relation to
budgeting.
Note you must answer these questions in your own words. Remember, you must get a satisfactory result with each question to be
deemed satisfactory for the whole of Assessment 1.

Information for students

Knowledge questions are designed to help you demonstrate the knowledge which you have acquired during the learning phase of
this unit. Ensure that you:

 review the advice to students regarding answering knowledge questions in the Hospitality Works Student User Guide

 comply with the due date for assessment which your assessor will provide

 adhere with your KII’s submission guidelines

 answer all questions completely and correctly

 submit work which is original and, where necessary, properly referenced

 submit a completed cover sheet with your work

 avoid sharing your answers with other students.

i Assessment information

Information about how you should complete this assessment can be found in essential subject information.
Refer to the appendix for information on:
where this task should be completed
the maximum time allowed for completing this assessment task
whether or not this task is open-book.
Note: You must complete and submit an assessment cover sheet with your work.

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KII5095 Business financial Management Assessment 1

Question 1

1.1 Describe the following types of budgets.

Cash flow budgets

Departmental budgets

Event budgets

Project budgets

Sales budget

Wage budgets

Whole of organisation budgets

Question 2: Complete the key terminologies used in budget preparation listed below in the
table. Provide a brief response to each terminology.

Activity-Based
Budgeting (ABB)
Administrative
Budget
Annual Budget
Balanced
Scorecard
Break-Even
Analysis
Budget
Budget Variance
Capital Budget
Cost-Benefit
Analysis
Direct Labour
Budget
Financial
Projection
Profit Variance
Variance Analysis

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KII5095 Business financial Management Assessment 1

Net profit
Cost of goods sold

Question 3: Specifics of Budgets in the Hospitality Industry

3.1 What are the main objectives of budgets?

3.2 Identify the three major roles of a budget

3.3 To assist in budgeting for the year ending 30 June 20XX, Kings Bakery has provided the following
information. Income Statement for the year ended 30 June 20XX

20XX 20XX (estimates)

$ Details
Sales (80% credit) 500,000 1100 units @ $500 Increase price per unit by 5% and
inc GST number of units by 15%
Cost of sales 200,000 Cost $200 per unit Supplier’s price unchanged. All stock is
inc GST purchased on credit
Gross Profit 300,000
Less other expenses
Bad debts 4000 20% of credit sales
Depreciation of 18,000 15% per annum Same rate and method
equipment straight line

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Wages 95,000 5% increase plus one new employee at
$65,000
Office expenses 25,000 Will pay $30,800 inc GST
Total Expenses 142,000
Net Profit 158,000
20XX 20XX (estimates)
$ Details
Assets
Bank 28,000 No required
Debtor’s control 52,000 Collect $500,000 from debtors
Stock control 40,000 200 units Number of units damaged
Prepaid office expenses 800 30 June 20XX balance $2000
Equipment 120,000 New equipment purchased for cash
$20,000 + GST
Accumulated Depreciation (44,000)
Total Assets 196,800
20XX 20XX
(estimates)
$ Details
Liabilities
Creditor’s control 27,000 Pay $245,000 to creditors
30 June balance $35,000
Accrued wages 2000 30 June balance $3,500
GST Clearing 3000 Not required
Loan 36,000 Taken 30 June Settle in February paying $4,200 in total
20XX
Total Liabilities 36,000
Owners’ equity
Capital 168,800 Drawings $60,000 cash, no additional
capital
Total Equities 196,800
3.4 Calculate the budgeted cost of sales for the year ending 30 June 20XX.

3.5 Prepare a budgeted income statement for the year ending 30 June 20XX

3.6 Reconstruct the debtors control account to determine the estimated balance at 30 June 20XX

3.7 Describe financial reports and provide an example of how they are presented

3.8 Describe the 4 different reporting cycles that impact on budget and cash-flow
BAS

Stock takes

Work cover

Payroll tax

3.9 Identify and describe the 2 different computerised accounting packages available for the Hospitality Sector
1.
2.

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KII5095 Business financial Management Assessment 1

Question 4: Internal and external factors that impact on budget development

4.1. Describe how each of the following factors impact on budget development. Provide an example to demonstrate your
comments
Growth or decline in
economic conditions
Human resource
requirements
New legislation or
regulation
Organisational and
management
restructures
Organisational
objectives
Shift in market trends
Significant price
movement for certain
commodities or items
Supplier availability
and cost

Question 5: Budget preparation and monitoring practices and techniques

5.1 Describe where you would find the following data and how it impacts budget preparation

competitor research

customer or supplier
research
declared commitments in
areas of operation
financial proposals from key
stakeholders
financial proposals from key
stakeholders
income and expenditure for
previous time periods
departmental, event or
project budgets
grant funding guidelines or
limitations
management policies and
procedures
organisational budget
preparation guidelines
performance information
from previous periods
financial proposals from key
stakeholders

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KII5095 Business financial Management Assessment 1
5.2 List and describe at least three forecasting techniques for making budget estimates

1.

2.

3.

5.3 Outline four common reasons why actual expenditure or income will show a variance against the budget.

Question 6: Explain What your budget will need to include to ensure the profit and productivity goals are met
Identify the items
your budget should
include
(50 words
approximately)

Explain how will

you use your
budget to measure
performance and
ensure the profit
and productivity
goals are met
(100 words
approximately)

Question 7: In detail discuss the cycles and methods of financial reporting. (Approximately 150 words).

Question 8: List at least two accounting software used in the industry. Describe five (5) characteristics and features of an
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KII5095 Business financial Management Assessment 1

accounting software of your choice that are utilised in the creation and oversight of budgets. (Approximately 150
words).

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