SITXFIN004 Assessment 1
Assessment 1
Your task: Answer each question below.
- Name 4 business considerations you might consider when researching a budget.
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1. 2. 3. 4. |
- Describe how the following sources of data can be used for budget preparation.
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Competitor research – Customer or supplier research – Declared commitments in areas of operation – Financial information from suppliers – Financial proposals from key stakeholders – Performance data/information from previous time periods – Departmental, event or project budgets – Grant funding guidelines or limitations – Management policies and procedures – Organisational budget preparation guidelines – |
- Explain how the following internal factors can impact on budgets.
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Management restructure – Human resources requirements – New projects and business objectives – Changes in commodity or service prices – |
- Explain how the following external factors can impact on budgets.
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Legislation and regulations – Changes in the global economy – Market trends – |
- How does involving staff “from the bottom up” in the budgeting process, help the business?
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- What does the process of preparing a draft budget usually involve?
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- How does breaking the budget down into groups, departments, or income and expense categories help colleagues?
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- Name 3 people (job roles) you would circulate the draft budget to for feedback or approval:
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1. 2. 3. |
- The budgeting process requires strong negotiation skills. Why is it important to convince staff of the achievability of the budget?
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- A staff member suggests a change or alteration to the budget. List 3 aspects you need to consider to ensure any changes would have no negative impacts:
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- In most businesses/industries, when must the budget be complete?
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- What information should department managers include in their monthly reports?
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- How often should the budget be compared to the actual accounting results?
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- Name and describe 5 financial reports you might generate from your accounting system to check your budget against actual income or expenditure.
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1. 2. 3. 4. 5. |
- Every revenue and expense item on the Profit and Loss Statement should be compared to what?
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- When revenue variances occur, why is talking to staff a good way to help identify and find options to address the issue?
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- List 3 factors that can cause variances in staff budgets.
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1. 2. 3. |
- Why is monitoring your budget progressively throughout the year so important?
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- How can you collect information to help create future budget plans?
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- Name an accounting program you can use to help manage budgets.
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- Explain each of the following types of budgets:
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Cash budget/Cashflow budget – Departmental budget – Event budget – Project budget – Purchasing budget – Sales budget – Wage budget – Master budget – |
