Manage budgets and financial plans

Assessment Event 2 of 3

Unit code, name and release number

BSBFIM501 Manage budgets and financial plans (1)

Qualification/Course code, name and release number

BSB50215 Diploma of Business (3)


Student name

Student number



Assessment Declaration

  • This assessment is my original work, and no part of it has been copied from any other source except where due acknowledgement is made.
  • No part of this assessment has been written for me by any other person except where such collaboration has been authorised by the assessor concerned.
  • I understand that plagiarism is the presentation of the work, idea or creation of another person as though it is your own. Plagiarism occurs when the origin of the material used is not appropriately cited. No part of this assessment is plagiarised.


Student Signature



© 2019 TAFE NSW, Sydney
RTO Provider Number 90003 | CRICOS Provider Code: 00591E

The resource from which this assessment has been compiled can be found in the Learning Bank

The contents in this document is copyright © TAFE NSW 2019, and should not be reproduced without the permission of the TAFE NSW. Information contained in this document is correct at time of printing: 14 November 2020. For current information, please refer to our website or your teacher as appropriate asessment instructions

Table 1 Assessment instructions

Assessment details Instructions
Assessment overview The objective of this assessment is to assess your knowledge as would be required to undertake financial management within a work team in an organisation.
Assessment Event number 2 of 3
Instructions for this assessment This is a written assessment and it will be assessing you on your knowledge of the unit. It includes:

Part 1 – Short answer responses

Part 2 – Assessment feedback

Submission instructions On completion of this assessment, you are required to upload it or hand it to your trainer for marking.

Ensure you have written or typed your name at the bottom of each page of this assessment.

It is important that you keep a copy of all electronic and hardcopy assessments submitted to TAFE and complete the assessment declaration when submitting the assessment.

This is an individual assessment, and your answers must be your own.

What do I need to do to achieve a satisfactory result? To achieve a satisfactory result for this assessment, all questions must be answered correctly.
What do I need to provide? If working off-campus, a computer with internet access to complete electronically and upload the assessment and/or pen to handwrite your responses.

Training materials and other research you have completed to refer to while completing the answers.

A calculator may be used.

What the assessor will provide Where completed on-campus, a computer with working internet to complete electronically and upload the assessment.
Due date/time allowed You should allow a minimum of three hours to complete this assessment. You may need additional time for preparation, research and revision to ensure you have responded to each question satisfactorily.

The assessment must be submitted by the due date noted on the Unit Assessment Guide.

Assessment location This assessment is to be completed in and out of class.
Supervision Your assessor may ask for additional evidence to verify the authenticity of your submission and confirm that the assessment task was completed by you. This may include oral questioning, comparison with in-class work samples, or observation.
Assessment feedback, review or appeals Appeals are addressed in accordance with Assessment Guidelines for TAFE NSW.



From assessment 1 – not in lesson 1



Part 1: Short answer responses

Question 1 – GST

GST is a concept that your team find confusing. To support your staff you are required to prepare a one page document, that can be used as a training tool and distributed to staff, in the space below (or you can paste in/paste a snip from another document if you like) that:

  • Explains the concept of GST
  • Names the relevant legislative Act
  • States when a business is required to register
  • Provides a financial example of how to calculate GST to add onto a sale price and to deduct from a purchase price
  • Explains obligations of a GST registered entity
  • Explains how GST is lodged to the ATO
  • Provides a reference where staff can obtain more information


– Goods and services tax(GST) is the basic tax that needs to be levied when consuming and enjoying services in Australia. The current consumption tax rate for goods and services in Australia is 10%.

– Goods and Services Tax Act 1999

– Luxury Car Tax Imposition – General Act 1999

– Income Tax Assessment Act 1997






Question 2 – Petty Cash

You are required to prepare a reconciliation of petty cash transactions for ‘Tim’s Print Shop’ for the period end 31/3/19: (you are encouraged to use excel to complete the question and paste in a screenshot of the table into the space provided).

  • Opening balance 1/3/19, $300.00
  • Receipts – Officeworks $8.25, Café next door $86.00, Mia’s flowers $96.00, Officeworks $15.00,
  • Required top up to value, $300


Question 3 – Budgeting principles and techniques

In the context of managing an organisation’s resources, explain what is meant by a flexible budget. Provide an example to assist your explanation.






Question 4 – Budgeting principles and techniques

You are the manager of Miranda Lush store.

You are required to prepare a budgeted profit and loss statement for the next financial year.

  • Explain the starting point for the budget allocations and then
  • provide details of at least 4 internal and 4 external factors that you must consider and
  • provide an example of how each might be relevant for this business.

Your response should be approximately 150 words.














Question 5 – Develop Budget

You are required to prepare the Budgeted Profit and Loss Statement for Perfect Plant Ltd for the next financial year, in the table provided below (copy to excel and calculate in excel), using the following information:

Perfect Plants Pty Ltd
Profit and Loss Statement
For the year ended 30/6/19
  $ $
Retail Cash Sales 1,050,000  
Wholesale Credit Sales 5,450,000  
Interest Received 10,000  
Less Cost of Sales    
Cost of Goods Sold 3,350,000  3,350,000
Gross Profit   3,160,000
Less Expenses    
Admin & IT 250,000  
Salary and Wages 1,055,000  
Superannuation 100,225  
Interest Paid 200,000  
Bad Debts 100,000  
Depreciation 150,000  
Other Operating Expenses 634,775  
Total Expenses   2,240,000
Net Profit Before Tax   920,000
Income Tax Expense   201,000
Net Profit After Tax   469,000
·           Sales is expected to increase by 8%

·         COGS will move in line with sales

·         Interest received, depreciation, interest paid are expected to remain the same

·         Admin & IT and Other operating expenses are expected to increase by 3%

·         Salary and Wages are expected to increase by 2.5%

·         Superannuation will remain 9.5% of Salary and Wages

·         Bad debts must be better managed to be limited to 1% of credit sales

·         Income Tax expense is expected to be 27.5%


Perfect Plants Pty Ltd
Budgeted Profit and Loss Statement
For the year ended 30/6/20
  $ $
Retail Cash Sales      1,134,000  
Wholesale Credit Sales    
Interest Received    
Less Cost of Sales    
Cost of Goods Sold    
Gross Profit    
Less Expenses    
Admin & IT    
Salary and Wages    
Interest Paid    
Bad Debts    
Other Operating Expenses    
Total Expenses    
Net Profit Before Tax    
Income Tax Expense    
Net Profit After Tax    





Question 6 – Clarify budget

You are the sales manager for a boutique beer brewery. You have been assigned a sales revenue budget from the Managing Director of $2,000,000. No more details have been provided.

In the table below, identify six items for which you require clarification of to help you confirm if this sales target is achievable and accurate. For each item you must state the relevant personnel with whom you would seek clarification and why. Your response should be approximately 100 -150 words.

  Point requiring clarification and why Relevant personnel Why this person?

Question 7 – Negotiate

After seeking clarification with the relevant personnel above, you do not agree that the sales target of $2,000,000 is achievable. Explain how you might negotiate with the Managing Director to adjust the target down to $1,500,000, which you believe is achievable and more accurate. Explain how you can ensure this target is comprehensible to staff. Your response should be approximately 100 words.








Question 8 – Contingency planning

Scenario: You are the sales manager at a boutique brewery. The business does not sell directly to the public but instead through third party retailers such as liquor stores and pubs. The majority of sales are made through credit arrangements where customers pay 45 days after invoice date.

The organisation outsources to a private shipping company to eliminate a capital investment in delivery vehicles. As the sales manager, you are in charge of ensuring that deliveries are made on time and run smoothly.

Task: Complete the below table detailing three potential risks that could affect your management area, provide a method for controlling the risk and a contingency plan for each that can be actioned should the risk eventuate.

  Risk Risk management strategy Contingency Plan








Question 9 – Contingency planning

Explain the importance of developing contingency plans as a financial management approach. What are they used for/hope to achieve? Your response should be approximately 50-100 words.






Question 10 – Communication

Explain the finance manager’s role in the budget communication process. Your response should be approximately 20-50 words.







Question 11 -Communication

State and discuss three methods used to communicate budget information to work teams. Provide an example of when each might be used within an organisation and the type of organisation for which it might apply. Your response should be approximately 100 words.
























Question 12 – Support staff

An organisation is having difficulty with the efficiency of the debt collection function due to staff not performing the procedure consistently. Write an email to your manager, in the space provided, to explain the ways that staff could be supported in performing the debt collection role and how this will lead to an improved and more consistent process. Your response should be approximately 200 words. (You may copy and paste this in from another application).













Question 13 – Organisational resources

Name the three categories into which organisational resources can be divided. For each category, provide an explanation of the resource, 1 example of cost and a description of how your example cost can be controlled or managed.

  Category of Resource Explanation Specific Example Way to control the cost




Part 2: Assessment Feedback

This section is to be completed by the assessor. Once feedback has been provided by the assessor you will be given the opportunity to respond.

Specific task feedback

Q Satisfactory response?  è Y/N Feedback
1 Use financial skills to work with and interpret GST and communicate with relevant people to disseminate the principles and techniques involved in managing GST    
2 Use financial skills to work with and interpret petty cash    
3-5 Access budgets/financial plans    
2-4 Describe the principles and techniques involved in budgeting    
5 Use financial skills to prepare a budgeted profit and loss statement    
6 Clarify budget with relevant personnel to ensure budget is achievable    
7 Negotiate changes required to the budget to ensure it is achievable. Describe how to ensure it is comprehensible to the work team    
8,9 Prepare contingency plans in the event that initial plans need to be varied    
10, 11 Disseminate relevant details of the agreed budgets/financial plans to team members    
12 Provide support to ensure team members can perform finance related roles    
13 Determine and access resources for financial management within the work team    


Additional evidence for verification of assessments

Additional questions asked by the assessor

Assessors may ask additional questions to clarify student understanding. List here any additional questions that were asked during this assessment event.








Student responses to additional questions

Record the student responses to any additional questions that were asked during this assessment event.










Overall Assessment Event Feedback


Assessment outcome

☐ Satisfactory

☐ Unsatisfactory

Assessor Feedback

☐ Has the Assessment Declaration on page 1 been signed and dated by the student?

☐ Are you assured that the evidence presented for assessment is the student’s own work?

☐ Was the assessment event successfully completed?

☐ If no, was the resubmission/re-assessment successfully completed?

☐ Was reasonable adjustment in place for this assessment event?
If yes, ensure it is detailed on the assessment document.

Assessor Comments:



Assessor name and date:



Student acknowledgement of assessment outcome

Would you like to make any comments about this assessment?

Students must acknowledge feedback of assessment outcomes in the Assessment Feedback Acknowledgement Statement on the Moodle.


Note: After feedback for all assessment events has been received, students will be asked to acknowledge result, and provide further feedback if they choose, in a student result summary form.

NOTE: Make sure you have typed your name in the footer before submitting for marking.

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