Assessment Tasks and Instructions

Student Name
Student Number
Course and Code
Unit(s) of Competency and Code(s) SITXFIN004 Prepare and monitor budgets
Stream/Cluster
Trainer/Assessor

Assessment for this Unit of Competency/Cluster Details

Assessment 1 Short Answer Questions

Assessment 2 Assignment
Assessment 3 Project
Assessment conducted in this instance: Assessment 1 2 3

Reasonable Adjustment
1. Has reasonable adjustment been applied to this assessment?
No No further information required

Yes Complete 2.
2. Provide details for the requirements and provisions for adjustment of assessment:

Student to complete
My assessor has discussed the adjustments with me
I agree to the adjustments applied to this assessment
Signature Date

2nd Assessor to complete

I agree the adjustments applied to this assessment are reasonable
 Name

Signature Date
Assessment Guidelines

What will be assessed

The purpose of this assessment is to assess your underpinning knowledge to complete the tasks outlined in
the elements and performance criteria for this unit of competency and relating to the following aspects:

 types of budgets:
o cash budgets
o cash flow budgets
o departmental budgets
o event budgets
o project budgets
o purchasing budgets
o sales budgets
o wage budgets
o whole of organisation budgets
 budget terminology
 specific industry sector and organisation:
o role and nature of budgets
o budget formats, budget performance and financial reports
o financial reporting procedures and cycles
o features and functions of accounting software programs used to prepare and monitor budgets
 internal and external factors that impact on budget development:
o growth or decline in economic conditions
o human resource requirements
o new legislation or regulation
o organisational and management restructures
o organisational objectives
o scope of the project
o shift in market trends
o significant price movement for certain commodities or items
o supplier availability and cost
 budget preparation and monitoring practices and techniques:
o sources and contents of data required for budget preparation:
 competitor research
 customer or supplier research
 declared commitments in areas of operation
 financial information from suppliers
 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
o techniques for making budget estimates
o common reasons for deviations and budget deviation management.
Place/Location where assessment will be conducted
SSH to complete

Resource Requirements
Pen, Paper or computer.

Instructions for assessment including WHS requirements

Answer the questions for this assessment below.
You are required to address all questions to achieve competence. Your trainer will provide you with
instructions for time frames and dates to complete this project.
Once completed, carefully read the responses you have provided and check for completeness. Your trainer
will provide you with feedback and the result you have achieved.

Statement of Authenticity
I acknowledge that I understand the requirements to complete the assessment tasks
The assessment process including the provisions for re-submitting and academic appeals were explained
to me and I understand these processes
I understand the consequences of plagiarism and confirm that this is my own work and I have
acknowledged or referenced all sources of information I have used for the purpose of this assessment
Student Signature: Date: / /201

This assessment: First Attempt 2nd Attempt Extension – Date:    /    /   

RESULT OF ASSESSMENT Satisfactory Not Yet Satisfactory

Feedback to Student:

Assessor(s) Signature(s): Date:    /    /     

Student Signature Date:    /    /     

Assessment 1

Your task: Answer each question below.

1. Name 4 business considerations you might consider when researching a budget.

Response
1.

2.

3.

4.

2. Describe how the following sources of data can be used for budget preparation.

Response
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 –

3. Explain how the following internal factors can impact on budgets.

Response
Management restructure –

Human resources requirements –

New projects and business objectives –

Changes in commodity or service prices –

4. Explain how the following external factors can impact on budgets.

Response
Legislation and regulations –

Changes in the global economy –

Market trends –

5. How does involving staff “from the bottom up” in the budgeting process, help the business?

Response
6. What does the process of preparing a draft budget usually involve?

Response

7. How does breaking the budget down into groups, departments, or income and expense categories help
colleagues?

Response

8. Name 3 people (job roles) you would circulate the draft budget to for feedback or approval:

Response
1.

2.

3.

9. The budgeting process requires strong negotiation skills. Why is it important to convince staff of the
achievability of the budget?

Response
10. 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:

Response

11. In most businesses/industries, when must the budget be complete?

Response

12. What information should department managers include in their monthly reports?

Response

13. How often should the budget be compared to the actual accounting results?

Response

14. Name and describe 5 financial reports you might generate from your accounting system to check your
budget against actual income or expenditure.

Response
1.

2.

3.

4.

5.
15. Every revenue and expense item on the Profit and Loss Statement should be compared to what?

Response
16. When revenue variances occur, why is talking to staff a good way to help identify and find options to address
the issue?

Response

17. List 3 factors that can cause variances in staff budgets.

Response
1.

2.

3.

18. Why is monitoring your budget progressively throughout the year so important?

Response

19. How can you collect information to help create future budget plans?

Response

20. Name an accounting program you can use to help manage budgets.

Response
21. Explain each of the following types of budgets:

Response
Cash budget/Cashflow budget –

Departmental budget –

Event budget –

Project budget –

Purchasing budget –

Sales budget –

Wage budget –

Master budget –