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Published by ria.preston, 2019-05-05 18:41:52



sharTehdisvistaudCyourresseouHrecreo.cwoasmSimon Gonzalez Bravo

Part A – Written or Oral Questions

1. List TWO sources of information that may help a manager to estimate the cost for
the coming year. (2 Marks – 1 Mark per point)
 One of the sources that may help a manager is checking the sources of last
year such as materials that the bought and also the labor cost, how much was
the cost that they spend last year.
 Another source is reviewing the cost from the year before and the actual year
with the suppliers what is the differences and check the increase of the cost.

2. Identify and briefly describe THREE examples of external banking records which are
used for the purpose of record keeping (3 Mark – 1 Mark per example)
 Bank Statements: This bank statements is where they show all your money
movements that goes in and out.
 Credit Statements: is where it shows the movements of the credit cards and
what you purchase for the company.
 Loan or lease agreements: is when you go to a bank and ask for a loan or a
lease, is the money that the bank lends you and you have to paid it each

3. List the relevant personnel you may communicate with in the organization to ensure
that documented outcomes and information about customers, competitors and
business operations. (2 Marks)
 You can communicate with the following personnel:
Frontline managers: Are the people in charge of a specific area at the company
and they have to take care that his department work really good.
Supervisors: are the people that are in charge of small employees and the
work is only check if all the things are working, is different to a manager.
Team leader: is a person who is a leader in everything that he do and the
manager put them to be a leader of a small group of people and help them
encourage do the best job.

4. What is a contingency plan? Explain the reasons for a contingency plan? What are
the steps to follow to prepare and develop a contingency plan? List THREE specific
areas to include in the plan. (10 Marks)
 A contingency plan is an action that the company has to have when something
doesn’t work, they call a plan B. When the plan A didn’t work they have
another plan that work.
 Companies has contingency plans for reasons to minimize the risks of each
departments, another reason is when a natural disaster occurs they have to
have a second plan to react and other reason is when the sales are low the
company has to react and make a plan B.

sharTehdisvistaudCyourresseouHrecreo.cwoasm There are 4 steps; first you have to analyze the risk that can occur during the
operation, second determine the probability of the impact of the risk, the third
one is develop a process to solve the risk and the last step look different way
to work and stop the risk repeats.

 During natural disasters such as floods or earthquakes, when the employees
go out to strike, or when there is a lost data in the company.

5. What is a financial plan? What should financial plans include? What are the external
and internal factors that may affect the financial planning? (10 Marks)
 Financial plan is a ongoing process to help you make decision about money
that can help you achieve you goals in life.
 A Financial plan need to include Operations plans: the company has to have
this in each department to have a plan how is going to work the following year
, Cash flow projections this is important cause if the company doesn’t have
cash flow is would be really difficult to pay some thins that has to be in cash,
and Long terms budget is really important to have this because if not there are
no goal to achieve, there is no money to save.
 External: Inflaction, Natural disasters
Internal: Strikes, Financial Crisis.

6. What is a budget? What are the objectives of a budget? What is the role of the master
budget? (10 Marks)
 Budget is a quantitative expression of a financial plan for a defined period.
 The objectives of a budget motivate the managers doing their job, also have
preparations for all the year, and don’t do a plan b.
 Is the master of all budgets. It is all different departments budgets join
7. (Check at the Excel Spread Sheet)
7a) (Check at the Excel Spread Sheet)
7b) (Check at the Excel Spread Sheet)
7c) (Check at the Excel Spread Sheet)

8. What is a good cash management? (3 Marks)
 Is the instruction of collecting and managing cash, and then for using it in
investing. Is the most important component for a company to ensure a
financial stability and solvency.

9. What is cost-volume-profit (CVP) analysis and how is it used in decision making? (5
 Is a technique that revises the behavior of the profit in response of the
changes in sales, volume, cost and prices.

sharTehdisvistaudCyourresseouHrecreo.cwoasm10. Scenario: APC Bikes, a manufacturer of sturdy mountain bikes for intermediate-level
bikers. Due to the increasing popularity of cross-country cycling, the management of APC
Bikes wants to produce a new mountain bike. After discussions with the sales and
production teams, management has forecast the following information:

Price per bike $800
Variable cost per bike $300
Fixed costs related to bike production $5,500,000
Targeted pre-tax profit $300,000
Targeted post-tax profit $210,000
Tax rate 30%

Required: Calculate breakeven in units and total revenue. (6 Marks)
Break-even = Fixed costs / (Selling price per unit – Variable costs per unit) = total bikes sold
• 5,500,000 / (800-300) = 11,000
• Sales revenue to break-even = Fixed costs/(Price per unit – Variable costs per unit) / Sales
price per unit) = Sales revenue • 5,500,000/((800-300)/800) = 5,500,000/0.625 = 8,800,000

11. Goods and services tax (GST), which was introduced in July 2000, is a broad-based
tax of 10% of most goods, services and other items sold or consumed in Australia.
Describe the THREE types of supplies under the GST legislation. (6 Marks – 2 Marks
- Taxable supplies
- GST-Free supplies
- Input taxes supplies

12. Scenario: Brian is running an ice cream shop. He paid $9.50 per hour for $3,950 hours
of working in packing 40,000 buckets of ice cream. The standard labour rate is $8 per
hour. How much is the direct labour price variance (i.e. the difference between the
actual price for labour and the standard price)? Is the variance favourable or
unfavourable? List the possible reasons for this variance? (5 Marks)

- Direct labour price variance = (Actual labour price per hour – Standard
labour price per hour) x Actual hours used = Variance

- ($9.50 per hour – $8.00) x 3,950 hrs = $5,925
- This variable is unfavourable because Brian’s paid more for labour per hr

than the standard called for
13. When evaluating financial information systems, what factors will you need to

consider? (3 Marks)
The financial information systems has to be with the organizations needs.
The cost of the system
The sorts of the system that produce and the person that has access to them.

Part B – Written or Oral Questions

sharTehdisvistaudCyourresseouHrecreo.cwoasmAnswer the following questions:

1. List and describe the 5 common types of budgets. (5 Marks)
Income Budget: Contains all of the line items found in a normal income statement
except the projection of how it would look in the future periods.
Cost and expenses budgets: details of all your income with operationg your business,
or running a project.
Master Budget: Is all the lower budgets produce by a company and it also includes
financial statements, Cash forecdast.
Capital Budget: is a budget that companies has to for acquisition or maintenance such
as Land, buildings or equipment.
Zero Base Budget: This budget means that all the expenses has to be at zero when a
new period start.
2. Listed below are the names of some of the commonly used budgets in businesses.
Using the 5 common types of budgets identified in Question 1, determine the budget
type for each listed budget. (5 Marks)

Commonly used Budgets Budget Type

1. Room Revenue Budget – Departmental Budget
2. Refurbishment Budget – Capital Budget
3. F & B Wages budget – Departmental Budget
4. Project Budget – Departmental Budget
5. Event Budget – Departmental Budget
6. Contract Cleaning Budget – Cost and Expenses Budget
7. Printing Budget – Cost and Expenses Budget
8. Marketing Budget – Cost and Expenses Budget
9. Cash Budget – Income Budget
10. Budget for a Small Business – Master Budget
11. Advertising Budget – Cost and Expenses Budget

3. What is cash flow? Give one example of how an organisation can control its cash
flow. (5 Marks): Cash Flow is the in and out of the money transactions that are made
in a company. An example how the organization controls is when at the statements
includes the total cash that is received minus the total cash spent.

5. When collecting data for analysis what are the two sources we can get data from?
(2 Marks)
Internal Source: Is the source where we can obtain information from inside the
company or organization. The are the reports of the departments each month.
External Source: This source you can collect it from the outside of the organization
such as surveys, census.

sharTehdisvistaudCyourresseouHrecreo.cwoasm6. How can data collected help an organization determine the effectiveness of their
financial management processes? (3 Marks): Collecting data helps the organization in
many ways but the most important is that this data helps to see if the organization
doing well in the year or is going bad and they have to do a plan B.

7. What is a financial plan and what does a financial plan include? (5 Marks)
Financial plan includes the financial of an individual of the current income and how he
spend the money, all this can help you by doing different variables such as predict the
future income and withdrawals plans.
In a Financial plan include descriptions of all of your goals in short, and long terms and
also has to have a time line when this goals are going to be accomplish.

8. What are some factors that could affect a budget? (4 Marks)
Previous Sales Figures: This factor could affect the budget by the total sales of the
industry or company products in a particular period of the year.
The Economy: The Economy can affect the budget cause it is in constant change in a
period of time.
Competitor actions: This means reason how can affect the budget, as an organization
need to check at the competitors because if this one drop the price of a product you
have to react at the actions of your competitors.

9. Budget/Financial Plan Exercise

Using the following information work out the answers for the questions below: (6
• 160-seat restaurant
• Average spent at lunch $16.50
• Lunch seat turnover 80%
• Average spent at dinner $25.50
• Dinner seat turnover 70%
• Restaurant open for lunch 260 days a year
• Restaurant open for dinner 312 days a year

a. What are the projected sales for lunch? (2 Marks)
160 (Seats) X $16.50 (Average spent in Lunch) X 260 (days) X 80% (Lunch Seat
turnover) = $ 549.120
b. What are the projected sales for dinner? (2 Marks)
160 (seats) X $25.50 (Dinner) x 312 (days) x 70% (Dinner turnover) = $891,072
c. What are the projected total annual sales for the restaurant? (2 Marks)
$549,120 + $891,072 = $1,440,192

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