Assessment Record SITXFIN004 Prepare and Monitor Budgets

International Institute of Management Pty Ltd
T/A American College / International Institute of Management

RTO Code: 31897
CRICOS Code: 03149K
Assessment Record SITXFIN004 Prepare and Monitor Budgets
Student Name JASWINDER KAUR
Student ID AMC000029E
Course Code & Course SIT50416 Diploma of Hospitality

Class/Group
RTO/SRTO RTO Code 31897
Assessment: (as applicable) Student Results:
1. Assessment 1 Short Not Yet Satisfactory Not
answers Satisfactory
Completed
2. Assessment 2 Not Yet Satisfactory Not
Satisfactory
Completed
3. Assessment 3 Project Not Yet Satisfactory Not
Satisfactory
Completed
4. Assessment 4 Not Yet Satisfactory Not
Checkpoints Satisfactory
Completed
5. Assessment 4 Quiz Not Yet Satisfactory Not
Satisfactory
Completed
Overall, the candidate was assessed as:
Competent Not Yet Competent
Feedback to candidate on overall performance during assessment:
The candidate requires the following skill development before re-assessment:
The candidate has been provided Name of Assessor:

with feedback and informed of the Signature of
assessment result and the reasons Assessor:
for the decision.
Date:
I have been provided with feedback Name of Candidate:
on the evidence I have provided. I
American College
RTO Code: 31897
CRICOS Code: 03149K
have been informed of the Signature of

assessment result and the reasons Candidate:
for the decision. Date:
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
2nd Attempt Extension – Date: /

This assessment: First Attempt
/
RESULT OF
Satisfactory Not Yet Satisfactory
ASSESSMENT
Feedback to Student:
Date / /
Assessor(s) Signature(s):
:
Date / /
Student Signature
:
American College
RTO Code: 31897
CRICOS Code: 03149K
Assessment – 1 – Short Answers

Assessment Tasks and Instructions
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
American College
American College
RTO Code: 31897
CRICOS Code: 03149K
180, Logan road

Woolloongabba
QLD 4102
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.
Assessment 1
Your task: Answer each question below.
1. Name 4 business considerations you might consider when researching a budget.
Response
Understand Your Budget’s Purpose
Use Historical Data
Use Estimates and Variables
Consider Your Common Expenses
2. Describe how the following sources of data can be used for budget preparation.
Response
Competitor research – competitor research is useful for establishing opportunities for your business and
also threats that your business might face, help to find out what products and services your competitors
are offering, what their pricing strategy is and their future plans, whenever possible.
Customer or supplier research – Customer research helps you to be aware of each type of customers’
needs and ensure that they are able to be met.
Declared commitments in areas of operation – These commitments will need to be taken into account
when preparing the budget as they will limit what else that department can do
Financial information from suppliers – Suppliers is contacted by the relevant Department Head to
ensure that the expenses recorded in the budget will reflect current pricing.
Financial proposals from key stakeholders –Business owners must be consulted when researching a
budget to ensure that the budget prepared will reflect their needs and wishes.
Performance data/information from previous time periods – This data is taken from the financial
statements of previous periods, particularly the Profit and Loss Statement. Historical data is a very
important part of budget research as it shows exactly what the business has done in the past. Many
businesses will forecast their future revenue and expenses based on the historical data plus a percentage
margin, as business owners and managers generally seek to increase their business every year.
American College
RTO Code: 31897
CRICOS Code: 03149K
Departmental, event or project budgets – the budget for each department will be like a mini profit and
loss statement and will show monthly as well as annual targets, average spend date, number of covers
data and will also show percentages as well as dollar figures.
Grant funding guidelines or limitations – Grant funding may be available for your business, depending
on the State and Country your business is located in, as well as the types of business you are running.
For example, a resort that attracts international customers may be able to claim the Export Market
Development Grant offered by the Australian Government Department known as Austrade.
Management policies and procedures – The running of a business relies on policies and procedures.
Budgeting is no different. There is a procedure and policy for the budget preparation, which should
discuss the process to be followed by management including who is responsible, who should be
involved, what steps must be carried out and what the overall goal is.
Organisational budget preparation guidelines – Guidelines may exist which specify how the budget
should be prepared. These guidelines will vary between types and sizes of business as well as with the
different expectations of management and owners
3. Explain how the following internal factors can impact on budgets.
Response
Management restructure – it will impact budgets as the new management team may run things
differently than the old team and will have different priorities for expenditure.
Human resources requirements – it requirements will impact on budgets as each new staff member
required will add additional expenditure to the budget. This includes not only the wage, but on-costs
such as superannuation and workers compensation insurance as well.
New projects and business objectives – New projects and other business objectives will impact on
budgets as funds will need to be diverted from their usual place to cover the new project. The scope of
the project (how large is the project, which departments it affects) will determine the size of the impact
the project has on the budget. Large projects such as refurbishment of an establishment will require
significant funding at the expense of other areas of the business.
Changes in commodity or service prices – it can impact on profit ratios. Changes in supplier or
availability of certain items may also impact. Budgets may need to be adjusted based on the new
requirements.
–
4. Explain how the following external factors can impact on budgets.
Response
American College
RTO Code: 31897
CRICOS Code: 03149K
Legislation and regulations – Changes in legislation can affect the business both operationally and
financially. External factors are outside the control of the business. Typical examples are legislation and
regulation
Changes in the global economy –Changes in the global economy may limit travel both domestically and
internationally. This can have a huge impact on turnover for TH&E businesses. When economies
tighten, people are less likely to spend on luxuries, one of which is TH&E. Holidays will no longer be
affordable.
Market trends – Market trends will affect the number of customers visiting your establishment and you
may need to change your product offering to move with the trends.
5. How does involving staff “from the bottom up” in the budgeting process, help the business?
Response
The bottom-up approach ensures that all staff is involved in the preparation of the budget, which means
they will work harder to achieve the budget than they would if it were just handed down by
management using a top-down approach.
6. What does the process of preparing a draft budget usually involve?
Response
Involve all the projected income, expenses, purchases, staffing requirements, into a spread sheet or
accounting program.
7. How does breaking the budget down into groups, departments, or income and expense categories help
colleagues?
Response
1. Easy to read and understand the budget information
2. It will save time to search budget information
3. Motivate and direct staff to work towards budget and company objective
8. Name 3 people (job roles) you would circulate the draft budget to for feedback or approval:
Response
General Manager
Financial Controller
The owners.
9. The budgeting process requires strong negotiation skills. Why is it important to convince staff of the
achievability of the budget?
American College
RTO Code: 31897
CRICOS Code: 03149K
Response
While the ability to negotiate is certainly an important part of boardroom meetings and hammering out
contracts, the benefits actually extend far beyond those better-known applications. For example,
negotiation skills can be invaluable when discussing the responsibilities an employee or new hire will
have, and can ensure that both parties understand exactly what is expected of the other.
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
1. Whether the additional costs are justified.

2. The effect of the costs on the bottom line.
3. Potential service provision issues.
11. In most businesses/industries, when must the budget be complete?
Response
By the end the financial year.
12. What information should department managers include in their monthly reports?
Response
Managers should include budget variances as well as an overall picture of the running of the
department in their monthly report.
13. How often should the budget be compared to the actual accounting results?
Response
Usually monthly.
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. Balance sheet: This displays a business’s financial status at the end of a certain time period. It
offers an overview of a business’s liabilities, assets, and shareholder equity.
American College
RTO Code: 31897
CRICOS Code: 03149K
2. Income statement: This indicates the revenue a business earned over a certain period of time
and shows a business’s profitability. It includes a net income equal to the revenues and gains
minus the expenses and losses.
3. Cash flow statement: Details a business’s cash flows during certain time periods and indicates
if a business made or lost cash during that period of time.
4. Wastage reports ----show how much stock is wasted each period. Each time an
incorrect beverage is made, or a stock item goes off
5. Occupancy reports ----are used to analyse the occupancy level of the establishment.
15. Every revenue and expense item on the Profit and Loss Statement should be compared to what?
Response
It should be compared to the actual figures of budget
16. When revenue variances occur, why is talking to staff a good way to help identify and find options to
address the issue?
Response
Involving staff in the budgeting process means they will work harder to achieve the budget than they
would if it were just handed down by management. It is important to convince staff of the achievability
of the budget. If staff is positive about the budget, they are more likely to support it and do their best to
work towards the targets that have been set.
17. List 3 factors that can cause variances in staff budgets.
Response
1 Rostering inefficient or inexperienced staff work in busy hours
2 Add in additional staff
3.delay in projects
18. Why is monitoring your budget progressively throughout the year so important?
Response
Monthly reviews of the budget against actuals is an important tool of budget
management.(TRUE)
In most businesses/industries the budget is completed by the end of the financial year, for the
next financial year
American College
RTO Code: 31897
CRICOS Code: 03149K
Every revenue and expense item on the Profit and Loss Statement for every department should be
compared to the budgeted figure. Managers should include budget variances as well as an overall
picture of the running of the department in their monthly report.
19. How can you collect information to help create future budget plans?
Response
Collect information from Historical data, market surveys, and past record
20. Name an accounting program you can use to help manage budgets.
Response
MYOB
Xero
21. Explain each of the following types of budgets:
Response
Cash budget/Cashflow budget – this is a forecast of the cashflow of the business, the cashflow
statement shows the physical cashflow in and out of the business and is a separate financial
statement from the balance sheet and profit and loss statement .
Departmental budget – each department within a business will have its own budget ,the budget
for each department will be like a mini profit and loss statement and will show monthly as well
as annual targets, average spend date, number of covers data and will also show percentages as
well as dollar figures
Event budget –these budgets are used for single events such as conferences, when quoting a
potential customer for a conference. The budget would be in the format of a mini profit and
loss statement and include the revenue broken down into rooms, food and beverage.
Project budget –a Project budget is just like any other type of budget but is prepared prior to a
new project commencing, it will analyse the costs and benefits of the new project and allow
management to decide whether it is a viable project
Purchasing budget – also known as expense budget, they show the projected expenditure of
the business
Sales budget – also known as revenue budget, it shows the projected sales either in units sold
or revenue amount when setting budgets. The revenue budget is the first to be determined.
American College
RTO Code: 31897
CRICOS Code: 03149K
Wage budget – it will be shown in each departmental budget; there will be a combined wages
budget. This will show the total wages for the business. This is still broken down into the
different department. This budget enables management to look at each individual staff member
as well as each department and the business as a whole and determine individual staff
performance and future wage rates.
Master budget – it is the budget for the entire business, including projected cash flow, profit
and loss, and balance sheet budgets.it includes all aspects of the operations and all departments
within the business and is created by the budget committee.
Assessment – 2
Assessment Guidelines
What will be assessed
Performance Evidence
The purpose of this assessment is to assess your ability to complete tasks outlined in elements and
performance criteria of this unit in the context of the job role, and:
 prepare a budget for a business that meets the specific business’ needs
 demonstrate the following when preparing the above budget:
o consultation on components
o analysis of factors that impact on the budget
o completion of draft and final versions of budget within designated timelines
Knowledge Evidence
American College
RTO Code: 31897
CRICOS Code: 03149K
 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; Timeframe for assessment tasks

American College
180, Logan Road
Ipswich Road
Woolloongabba
QLD 4105
American College
RTO Code: 31897
CRICOS Code: 03149K
Computer with Microsoft excel

Calculator
Spread Sheets:
“Task 1-Hotel Futura Budget_Forecast”
“Task 2-Budget Futura_Restaurant_Bar”

The assignment for Assessment 2 consists of 3 Tasks
Task 1
Requires you to prepare a draft budget following a meeting with all heads of department where you
have finalised the details and requirements to be included for next year’s budget.
Task 2
Requires you to prepare a final budget, based on the changes made to your draft budget following a
management meeting.
Task 3
Requires you to respond to 3 financial scenarios.
All responses must be typed and clearly referenced to each task. Your trainer will provide you with
feedback for each task. You will be provided with the opportunity to rectify any shortfalls based on the
feedback from submitted work for this assessment.
Each completed spreadsheet must be attached to the relevant task and clearly referenced.
Task 1
Your Tasks:
You are required to complete a draft budget based on information and factors that were determined during
an executive meeting at Hotel Futura.
A. Access the excel spreadsheet named “Task 1-Hotel Futura Budget_Forecast”. The first tab on this
spreadsheet is labelled “Departments Small” and shows the existing budget figures for the 2016
financial year.
B. Use the template “Draft Budget” on the second tab of the spreadsheet and perform the calculations
below using basic formulas.
Your forecast needs to include the Dollar Figures and the % values for these affected by changes
outlined below.
The % values must be listed for each expense item shown in the Expenses Analysis for each
department.
You have met with the department heads of Hotel Futura and the following details have been
discussed to prepare your draft budget for 2017:
1. Rooms Division:
a. Due to renovations the rooms available have been reduced to 96%.

b. The forecasted occupancy rate has been adjusted to 80%.
c. The revenue per available room needs to be increased to $150.00
d. The COGS will increase to 15% of total room revenue
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RTO Code: 31897
CRICOS Code: 03149K
e. Staff costs need to be increased to 20% of total room revenue to allow for increases in
superannuation and awards.
f. Other Expenses need to increase to 8% of total room revenue to cover electricity price rises.
2. Catering:
a. The food revenue will be increased by 15% due to a new marketing campaign and specialty
menus
b. The beverage revenue will increase by 8%.
c. Staff costs need to be adjusted to 44% of the food budget.
d. Other Expenses will need to be increased to 7%.
3. Banquet:
The Banquet Division will be directly affected by the new marketing campaign which has been
directed at daytime seminars and corporate functions. For this purpose the kitchen has received
specialised equipment including multiple combi steamers, hold-o-mats and sous-vide equipment.
a. The new food revenue budget was set at $ 2,000,000.00 ($2 Million) and the beverage revenue
was increased by 75%.
b. The COGS will increase to 26%.
c. The staff costs have been reduced to 19%.
d. Other Expenses will need to increase to 14%.
4. Room Service:
a. The room service revenue from food needs to be increased by 15%.

b. Due to a different system to clear floors and organise delivery, the staff costs will be reduced to
34%.
5. Mini Bar:
The mini bar budget remains unchanged and increased staff costs are absorbed through different
processes.
6. Bar Budget:
a. The food revenue budget has been increased by 25% with the implementation of a Tapas Menu.
b. The Beverage Revenue budget has been increased 20% with the introduction of a new cocktail bar
and happy hour specials.
c. Staff costs will need to be adjusted to 36%.
d. Other Expenses need to be increased to 18%.
American College
RTO Code: 31897
CRICOS Code: 03149K
Task 2
Your Tasks:
You have provided the chief financial controller with the draft budget for 2017. Following the
recent executive meeting where the draft budget was discussed, you are now required to establish
the final budget reflecting the changes based on the latest actuals and variances as well as major
road works which will affect Futura Restaurant and Bar during 2017.
A. Access the excel spread sheet named “Task 2-Budget Futura_Rest.&Bar”. The first tab on this
spreadsheet is labelled “Futura Restaurant and Bar” and shows the Draft budget figures for the
2017 financial year.
B. Use the template “Revised Budget” on the second tab of the spreadsheet and perform the calculations
below using basic formulas based on the following changes:
Month Customer numbers Average Spend (Food) Average Spend (Beverage)
January 1850 $ 45.00 $ 9.70

February 2000 $ 37.00 $ 9.70
March 700 $ 42.00 $ 9.70
April 1200 $ 48.00 $ 9.70
May 1200 $ 36.50 $ 9.70
June 600 $ 35.00 $ 9.70
July 950 $ 34.00 $ 9.70
August 800 $ 38.00 $ 9.70
September 900 $ 29.00 $ 9.70
October 650 $ 29.50 $ 9.70
November 980 $ 35.50 $ 9.70
December 2200 $ 48.00 $ 9.70
American College
RTO Code: 31897
CRICOS Code: 03149K
1. Calculate the anticipated Food revenue for each month and the yearly total.
2. Calculate the anticipated Beverage revenue per month and the yearly total.
3. Calculate the Total Revenue for each month and the yearly total.
4. Calculate the overheads total for each month (at 90% of turnover for each for each month with 1000
or more customers and at 96% for each month with less than 1000 customers) and the yearly total.
5. Calculate the profit for each month and the yearly total.
6. Calculate the Cost of Goods Sold for food and beverages, given a combined percentage of 32%.
7. Calculate the staff costs for each month at 31% for each month with 1000 or more customers and at
35% for each month with less than 1000 customers.
8. Calculate the ‘Other overheads” for the operation.
9. Print a copy of the revised budget.
10. Print the revised budget showing all formulae used.
Task 3
Your Tasks:
Read the following 3 scenarios and answer the questions attached for each scenario.
Scenario 1:
The finance team has created budget forecasts for Hotel Futura based on carefully researched factors for
the last 3 years and these were always very accurate. The recent budget which included all departments of
the hotel was implemented 3 months ago and the forecasted figures for Food Cost and COGS/Beverages
in both the Restaurant and the Bar Operations have blown out by nearly 4.5 percent.
What could be the reasons for this? List 5 examples of areas you would investigate and explain why.
Answer.
1. Lack of staff skills may impact the quality of service
2. Inflation may hike the prices of products and services of TH&E
3. Unsuitable forecasting and predicting budgets models may impact the budget
4. Excessive wastage of products and services due to more usage by staffs rather than customers
5. Use of estimations or inappropriate data may reflect inappropriate predicted costs
Scenario 2:
Hotel Futura has successfully operated for 7 years. During this period, overall turnover has doubled, and
during the past 3 budget periods annual budgets have been increased by 15% each year which was
American College
RTO Code: 31897
CRICOS Code: 03149K
exceeded each time. During the last 6 months however, management has noticed that the opposite trend
seems to be occurring now.
List 5 external factors which could contribute to this and explain which methods you would use to
determine this.
1. Legislation and regulations: it can impact on profit ratios. Changes in supplier or

availability of certain items may also impact. Budgets may need to be adjusted based on
the new requirements. This can be at a local, state or national level. Changes in
legislation can affect the business both operationally and financially.
2. social media factors: the suppliers, customers and clients give negative feedback ,this
can demotivate the hotel staff sometimes and lead to decline in turnovers like how
consumers, and communities behave and their beliefs
3. Economic :Changes in the global economy and changes in market trends could affect the
turnover issues in the hotel industries
4. Political: Changes in government policies could impact business organizations in many
ways. example increase or decrease in tax will affect the company’s budgets.so the
company have to understand the political factors and firmly comply with government
policies
5. Financial factors: Use inaccurate data and forecasting models could reflect the future will
result in inaccurate forecasted costs
Scenario 3:
You have successfully negotiated the draft budget with each department head of the Hotel which has now
been approved by the director and implemented 6 weeks ago.
You have finalised the financial data of the Hotel for the next management meeting and noticed the
following:
a.
Department Budget Actual Variance
Kitchen/Food Cost 28% 32% (-)$ 13467
b. The recently appointed F&B Manager has purchased 240 bottles of Hill of Blessings @ $90 each
which represents a saving of $30 per bottle. However, this exceeds the par stock level by 220 bottles
and has created a cashflow problem, given the negative performance of the kitchen during this period
as well.
1. Which reports would you need to prepare for these issues?

Answer. Cash flow statements, Department reports and Budget Variance reports
2. Who is it essential to involve when these matters need to be discussed?

Answer. Front & Back officer, Chief Executive Officers, Chief Financial Officers, Financial
operational managers and Executive Chef
3. Suggest options to address and rectify these issues.

Answer.
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RTO Code: 31897
CRICOS Code: 03149K
By selling bottles at minimum price.

Recognize the costs of problems and determine the method to resolve the problems
Address communication with the vendor and employees
4. How could the cashflow issue be addressed?

Answer.
By negotiating payments’ terms and conditions with vendor
By selling Hills of Blessings’ bottles at minimum costs
Fire some employees to avoid any wages expenses
Assessment – 3 – Project
Practical Assessment – Project
Assessment Guidelines
What will be assessed–Performance Evidence
The purpose of this assessment is to assess your ability to complete tasks outlined in elements and
performance criteria of this unit in the context of the job role, and:
 prepare a budget for a business that meets the specific business’ needs
 demonstrate the following when preparing the above budget:
o consultation on components
o analysis of factors that impact on the budget
o completion of draft and final versions of budget within designated timelines
 monitor and review the above budget against performance over its life cycle.
Place/Location where assessment will be conducted; Timeframe for assessment tasks

American College
180, Logan road
Woolloongabba
QLD 4102
Assessment must ensure access to:
1. Computers, printers and accounting software packages

2. Financial and operational data and reports used to prepare budgets to be provided by the
RTO, relevant to a business in the Tourism, Travel, Hospitality or Events sector course
stream where the student is enrolled or undertakes practical training. The budget may be for
an entire organisation, for a department or for a particular project or activity.
3. Others with whom the individual can discuss, and negotiate draft and final budget components
American College
RTO Code: 31897
CRICOS Code: 03149K

Your trainer will provide you with or arrange for financial data to prepare a budget for a
business relevant to your course stream and/or area or training/workplace for a specific period,
e.g. a quarter, six months or as relevant.
Based on the type of budget and data provided to you, you are required to:
1. Consult with the relevant staff directly affected by the budget (Department heads, e.g.
head-chef, events manager etc.) on the components to be included in the budget.
This requires a written report of the details that were discussed including a detailed
analysis of the factors that impact on the particular budget.
2. Following your consultation, you are required to complete a draft budget which reflects
the details you have provided in your report.
3. Present the draft budget to the staff you consulted on the budget components. Provide
details of feedback and changes that were requested. This needs to include the why’s and
how’s.
4. Based on the feedback received, complete the final budget. Obtain approval of the
relevant department head(s), financial officer or person in charge of the organisation.
Attach a copy and the signed, approved budget.
5. Monitor the budget against performance at intervals as instructed, this may be e.g. weekly
or monthly and include the relevant reports and actions taken for each review during the
budget cycle.
6. Each change actioned taken as a result of underperformance must be documented and

signed by the authorised person in the workplace or where the budget is monitored in a
simulated environment, by your trainer.
7. On completion of the budget cycle, provide a summary report for the budget
performance. What are your recommendations for the next cycle based on your
monitoring and reviews? Why?
Assessment 3
Budget Project
Task
Prepare a budget for a business that meets the specific business’ needs.
Business Name: ______________________________________________
Supervisor/Manager: ______________________________________________
Business Address: ______________________________________________
Type of Operation: ______________________________________________
Type of Budget: _____________________________________________
Budget Period: ______________________________________________
Budget Data provided on: ___________________________________________
Budget Data attached
American College
RTO Code: 31897
CRICOS Code: 03149K
Draft Budget Due: ______________________________________________
Final Budget Due: ______________________________________________
I herewith confirm that I have received all data and information to enable me to complete the assessment
task outlined in this document.
Student Signature: __________________________ Date:
________________________________
Instructions
Based on the type of budget and data provided to you, you are required to:
1. Consult with the relevant staff directly affected by the budget (Department heads, e.g. head-
chef, events manager etc.) on the components to be included in the budget.
This requires a written report of the details that were discussed including a detailed analysis
of the factors that impact on the particular budget.
2. Following your consultation, you are required to complete a draft budget which reflects the
details you have provided in your report.
Restaurant Draft Budget Jul % Aug % Sep %

$187712 $178545 $187544
Total Revenue 100.0 100.0 100.0
$144794 77.1 $141515 79.3 $157584 84
Total Food Revenue
$42918 22.9 $37030 20.7 $29960 16
Total Beverage Revenue
$46892 32.4 $48745 34.4 $45678 29

Cost of Sales Food
$13267 30.9 $13654 36.9 $9785 32.7
Cost of Sales Beverage
$127553 68 $116146 65 $132081 70.4

Gross Profit on Sales
$15978 8.5 $15489 8.7 $23098 12.3

Salaries & Wages - Preparation
$18745 10 $18426 10.2 $26423 14.1
Salaries & Wages - Service
American College
RTO Code: 31897
CRICOS Code: 03149K
3. Present the draft budget to the staff you consulted on the budget components. Provide
details of feedback and changes that were requested. This needs to include the why’s and
how’s.
Feedback / Reasons for Adjustments Final decision

changes
cost of sales food is high use seasonal products, use Agree

then 30% in Jul second cut meat and
vegetable for stew
lessen to 29.1%
cost of sales food and Use seasonal proudest, use Agree

Beverage is high then 30% second cut meat and
in Aug vegetable for stew
Lessen to 29.6%
Find a better supplier

cost of sales Beverage is Agree
high then 30% in Sep Lessen to 29.7%
Add more $10000 revenue promote Agree

in Aug
Salaries & Wages - Hire more junior worker or Agree

Preparation and Service high student worker
then 10% in Sep
Lessen to 8.9% and 8.4%
4. Based on the feedback received, complete the final budget. Obtain approval of the relevant
department head(s), financial officer or person in charge of the organisation. Attach a copy
and the signed, approved budget.
Restaurant Final Budget Jul % Aug % Sep %

$187712 $178545 $187544
Total Revenue 100.0 100.0 100.0
$144794 77.1 $141515 79.3 $157584 84
Total Food Revenue
$42918 22.9 $37030 20.7 $29960 16
American College
RTO Code: 31897
CRICOS Code: 03149K
Total Beverage Revenue
$42156 29.1 $41675 29.4 $45678 29

Cost of Sales Food
$13267 30.9 $10947 29.6 $8911 29.7
Cost of Sales Beverage
$132289 70.5 $125923 70.5 $132955 70.9

$15978 8.5 $15789 8.7 $16784 8.9

Salaries & Wages - Preparation
$18745 10 $18426 10.2 $15761 8.4
Salaries & Wages - Service
5. Monitor the budget against performance at intervals as instructed, this may be e.g. weekly
or monthly and include the relevant reports and actions taken for each review during the
budget cycle.
Answer.
Restaurant Actual Budget Jul % Aug % Sep %
Total Revenue 179,564 100.0 170,539 100.0 173,607 100.0
Total Food Revenue 144,097 80.2 146,047 85.6 149,657 86.2
Total Beverage Revenue 35467 19.8 24,493 14.4 23,950 13.8
Cost of Sales Food 55,045 38.2 52,138 35.7 55,373 37.0

6,123 5,987
Cost of Sales Beverage 5,948 25.0 25.0 25.0
118571 66 112278 65.8 112247 64.7

Salaries & Wages - 19,545 11.6 21,555 12.6 18,818 10.8

Preparation
Salaries & Wages - Service 37,609 22.4 39,325 23.1 35,398 20.4
American College
RTO Code: 31897
CRICOS Code: 03149K
Findings Month Forecast figures Actual figures Variance(favourable or
Unfavourable)
Total Revenue Jul 187712 179564(95.7%) unfavourable,
A similar restaurant
opened nearby
Salaries & Wages Jul 15978 19545(81.7%) unfavourable,

- Preparation
hire too many
professional chef
Cost of Sales Aug 41675 52138(79.9%) unfavourable,

Food
use too much unseasonal
proudest
Aug 10947 6123(55.9%) favourable

Cost of Sales
Beverage
Salaries & Wages Sep 15761 35398(44.5%) unfavourable,

- Service
hire too many staff
6. Each change actioned taken as a result of underperformance must be documented and

signed by the authorised person in the workplace or where the budget is monitored in a
simulated environment, by your trainer.
Answer.
 Total Revenue in Jul : A similar restaurant opened nearby, so we buy too many ingredients.
 Salaries & Wages - Preparation in Jul : hire too many professional chef
 Cost of Sales Food in Aug : use too much unseasonal products
 Salaries & Wages - Service : hire too many staff
7. On completion of the budget cycle, provide a summary report for the budget performance.
What are your recommendations for the next cycle based on your monitoring and reviews?
Why?
Recommendations:
1. Total Revenue : Because a new restaurant opened next door, we need to re-evaluate the
demand for ingredients
American College
RTO Code: 31897
CRICOS Code: 03149K
2. Salaries & Wages - Preparation : Hire more junior worker or student worker
3. Cost of Sales Food : use seasonal products
4. Salaries & Wages - Service : reduce staff during non-peak hours
American College
RTO Code: 31897
CRICOS Code: 03149K
Q Assessment Criteria NY NY Comments

S S
. S S
1 Consultation
The consultation includes individuals relevant to the budget
The scope of the budget is discussed
The budget factors have been analysed
The scope of the budget has been confirmed
The report provides concise details of the consultation
process:
Requirements for each budget factor
Analysis of each budget factor
Clear communication strategy for each factor
Summarised requirements and changes agreed
2 Draft Budget
The draft budget is prepared correctly
Each factor is reflected in the draft budget
The income and expenditure is supported by valid information
The organisational objectives are reflected in the draft budget
The recommended and agreed changes are outlined in the
draft budget
3 Present Draft Budget
The draft budget is presented to the relevant parties
The budget components are reviewed
Required changes are negotiated and documented
The final changes are approved by an authorised person
4 Prepare Final Budget

The final budget is prepared within agreed timeframes
All negotiated details are reflected in the final budget
The budget data is correct
The final format for the budget is professional to industry
standard
The final budget is approved and signed
5 Monitoring Budget
The budget performance is monitored according to the agreed
intervals
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RTO Code: 31897
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The performance of each component is reflected in the

relevant reports:
Report 1: ___________________________ Date:
Report 2: ___________________________ Date:
Report 3: ___________________________ Date:
Report 4: ___________________________ Date:
Report 5: ___________________________ Date:
Report 6: ___________________________ Date:
All under-over performances have been identified correctly
6 Reviewing Budget performance targets

Actions have been suggested where deviations have been
identified
The recommended actions are relevant
The recommended actions are realistic given operational
aspects
Where relevant, internal factors affecting budget performance
are analysed
Where relevant, external factors affecting budget performance
are analysed
Changes of internal and external factors analysed are reflected
in changes to the budget
Where changes are made, these are communicated to all
relevant parties
Actioned changes to the budget are approved by authorised
staff
7 Evaluation of Budget
The budget is evaluated reflecting performance
The budget is evaluated using feedback from relevant staff
The changes made during the cycle are reflected in the
evaluation report
Suggestions are provided for future improvements, reflected
in the summary report.
American College
RTO Code: 31897
CRICOS Code: 03149K
Assessment – 4 - Quiz
Quiz SITXFIN004 Prepare and Monitor Budgets
1. Multiple True or False
Indicate whether the following statements in regards to budgets are true or false:
1. A budget is a financial document which anticipates the future earnings and expenditure of a
business. false __
2. Involving staff in the budgeting process means they will work harder to achieve the budget
than they would if it were just handed down by management. true ___
3. Budget targets are set and these are analysed against actual results during a given period.
_true__
4. Budgets must be compiled by a chartered accountant. _ false___
5. Budgets are nominated for a financial year and then broken into quarters and monthly
figures. __true __
6. To make the budget relevant, budgets are broken down further into revenue and expense
categories. _ true ___
2. Drag the Ticks
Which of the following are benefits of budgeting?

1. Provide direction ✓
2. Motivate staff ✓
3. Coordinate business activities ✓
4. Assist in lodging your BAS
5. Help evaluate business performance ✓
6. Make recruiting staff easier
Indicate whether the following statements in regards to business budgets are true or false:
1. Budgets may contain Sales Revenue, Cost of Goods Sold (COGS), Wages, Rent, Electricity,
and other components. _TRUE___
2. Capital expenditure budgets must include superannuation, payroll tax, etc. __false __
3. Budgets can be managed through accountancy software programs such as Xero, MYOB and
Cashwhiz. __false __
American College
RTO Code: 31897
CRICOS Code: 03149K
4. Large businesses may have a budget committee or external advisers to assist in compiling
the total budget. _TRUE___
5. The Master Budget incorporates only the revenue generating departments of a business.
_TRUE___
6. Upcoming projects must be budgeted for to ensure the project is viable. _TRUE___
The following statements relating to capital expenditure are:
1. Capital expenditure budgets are a special type of budget used to manage the purchase of
assets. _TRUE___
2. Capital expenditure budgets are a special type of budget used to manage the sale of assets.
_false ___
3. A capital expenditure budget would be prepared to include the provisions of a
refurbishment of guest rooms, amenities or office areas. _TRUE___
4. Capital expenditure budgets need to be prepared for each financial period where there is a
requirement for maintenance of equipment and/or staff training. __false __
Indicate whether the following statements in regard to factors impacting on budget are true or false:
1. Management restructures are internal factors that do not impact on budget. _TRUE___
2. Human resource requirements will impact on budgets as each new staff member required
will add additional expenditure to the budget. _TRUE___
3. Projects will impact on budget and depending on size may best be assessed in a separate
budget. _TRUE___
4. External factors are outside the control of the business. Typical examples are legislation and
regulation. _TRUE___
5. Variances to budget must be checked regularly so that corrective measures can be put in
place. __false __
6. Changes in commodity or service prices have no impact on budgets. __false __
7. Budgets may need to be adjusted when there are changes to suppliers and associated prices.
__TRUE__
6. True or False
External factors are aspects outside the business, over which the owners and management have no
control including legislation and regulation changes, economics or market trends. __true __
Indicate whether the following statements in regard to factors impacting on budget are true or false:
American College
RTO Code: 31897
CRICOS Code: 03149K
1. New projects and other business objectives will impact on budgets as funds will need to be
allocated. __TRUE__
2. Changes in legislation can affect the business both operationally and financially. _TRUE___
3. External factors are outside the control of the business. Typical examples are legislation and
regulation. __TRUE__
4. Changes in the global economy do not impact on turnover for TH&E businesses. __FALSE
__
5. Market trends will affect the number of customers visiting your establishment. __TRUE__
8. Drag the Ticks
Which of the following are examples of sources of data for compiling a budget?
1. Staff performance evaluations ✓

2. Performance data from a previous period ✓
3. Financial proposals from key stakeholders ✓
4. Financial information from suppliers ✓
5. Customer research
6. Competitor research ✓
7. Grant funding guidelines or limitations ✓
9. Drag the Ticks
Which of the following are components of the Operating Budget?

1. Sales or Revenue Budget ✓
2. Purchases and Cost Of Goods Sold (COGS) budgets ✓
3. Wages Budget ✓
4. Operating Expense Budget ✓
5. Business Activity Statement
6. Budgeted Profit and Loss Statement ✓
7.
Indicate if the following statements relating to the budgeting process are true or false.
1. The process of preparing a draft budget usually involves entering all the projected income,
expenses, purchases, staffing requirements, etc into a spreadsheet or accounting
program_TRUE ___
2. The budgeting process requires strong negotiation skills__TRUE __
3. It is important to convince staff of the achievability of the budget __TRUE__
4. Involving staff in the budgeting process can be a costly, time wasting process_FALSE___
American College
RTO Code: 31897
CRICOS Code: 03149K
5. If staff are positive about the budget, they are more likely to support it and do their best to
work towards the targets that have been set_TRUE ___
11. Drag the Ticks
Which of the following are examples of people (job roles) you would circulate the draft budget to for
feedback or approval?
1. Budget Committee ✓
2. Owners ✓
3. Customers
4. Upper management ✓
5. Managers of each department ✓
6. Staff ✓
7. Suppliers
12. Drag the Ticks
Tick the correct statements relating to reviewing feedback from the draft budget.
1. When a suggestion is received from a staff member it must be included in the final budget.
__FALSE __
2. Once the draft budget is created, suggestions cannot be included into the final budget.
_FALSE___
3. The budget preparation must include an analysis of the priorities of each request.
_TRUE___
4. Every department will feel that their request is the most urgent and important. _TRUE___
5. The General Manager and owners may have a different opinion to staff about the
importance of requests. _TRUE___
6. Each change requested should be given a priority and the effects if implemented must be
considered. _TRUE___
7. If a high priority item is required, this may mean that many other requests cannot be
granted. _TRUE___
8. If the feedback is relevant and approved, it should be amended in the draft budget. __TRUE
__
13. Drag the Ticks
Which of the following are examples of aspects you should consider when a staff member suggests a
change or alteration to the budget?
1. Whether the additional costs are justified. ✓

2. The effect of the costs on the bottom line. ✓
3. How much annual leave the staff member has.
American College
RTO Code: 31897
CRICOS Code: 03149K
4. If the staff member will be with the company for an extended period.
5. Potential service provision issues. ✓
Indicate whether the following statements in regard to monitoring budget are true or false:
1. Monthly reviews of the budget against actuals is an important tool of budget management.
_TRUE___
2. In most businesses/industries the budget is completed by the end of the financial year, for
the next financial year. __TRUE__
3. Every revenue and expense item on the Profit and Loss Statement for every department
should be compared to the budgeted figure. _TRUE ___
4. It is important to undertake further investigation into budget variances, regardless of
whether they are over or under. _TRUE___
5. Budget variances and impacts should be reviewed at the end of the financial year.
_FALSE___
6. Managers should include budget variances as well as an overall picture of the running of the
department in their monthly report. _TRUE ___
15. Drag the Ticks
Tick the correct statements relating to “under or over budget”:
1. For expenditure budget going over budget is considered favourable as you have spent less
than was expected.
2. For a revenue budget, being over budget is considered a favourable variance as you have
made more revenue than expected. ✓
3. For expenditure budget going over budget is considered unfavourable as you have spent
more than was expected. ✓
4. For a revenue budget, being under budget is considered a favourable variance as you have
made more revenue than expected.
Indicate whether the following statements in regard to analysing budgets are true or false:
1. Wages can often vary from budget. __TRUE__
2. The only way to meet budget targets and savings is to cut expenditure. __FALSE __
3. Raising revenue will affect budget in a negative sense as expenses will increase more than
the amount of revenue. __FALSE__
4. Net profit is impacted negatively by an increase in revenue. __FALSE__
5. Raising average spend by up-selling is an effective way to increase profitability. _TRUE___
6. If the projected sales figures are $240,000 and the actual sales figure is $288,000 – this
represents a favourable variance of 20%. _TRUE __
American College
RTO Code: 31897
CRICOS Code: 03149K
7. If the projected sales figures are $150,000 and there is a favourable variance of 10%, the
actual sales figures are $135,000. _FALSE___
The following statements relating to effective provisions for budget control are:
1. Staff should be advised of the importance of budgetary control and meeting the budget each
month. __TRUE __
2. Informing staff about the need of budget control measures will ensure there will be no overs
or unders at any time. _FALSE___
3. Each organisation will have policies about budgetary non-compliance and how this is dealt
with. _TRUE___
4. Some businesses may increase next month’s budget if there is a shortfall this month.
_TRUE___
5. If the budget has been exceeded you may spread the amount over a number of months or
simply tighten the expenditure to rebalance the ratios. __TRUE __
18. Drag the Ticks
Which of the following occurrences would result in achieving a favourable variance in profit?
1. Increased revenue with costs remaining constant ✓
2. Increased revenue with costs decreasing ✓
3. Decreased revenue with costs increasing
4. Decreased revenue with costs remaining constant
5. Revenue remaining constant with costs decreasing ✓
6. Revenue remaining constant with costs increasing
Indicate whether the following statements in regard to reviewing budgets are true or false:
1. All variances throughout the year must be collated to update the budget on an ongoing
basis. _TRUE___
2. The budget target cannot be amended and must be met regardless of changes in
circumstances. _FALSE___
3. Internal and external analysis is a must for assessing budget impacts. __TRUE__
4. Management must assess factors such as price increases by suppliers to manage the budget.
_TRUE___
5. Future budgets are often based on last year’s budget. __TRUE__
6. The department managers do not have to use numeracy and literary skills to interpret
financial data as it is done by the Finance department. __FALSE__
American College
RTO Code: 31897
CRICOS Code: 03149K
The following measures for monitoring and updating budgets are:
1. You should collate all variances that are discovered throughout the year as well as the
required changes, to enable the budget to be updated. __TRUE__
2. The budget must be reviewed periodically to ensure that it is still relevant. __TRUE__
3. Once a budget is implemented it cannot be changed or adjusted; therefore you should
collate all variances that are discovered throughout the year to change the budget for the
following year. __FALSE__
4. Factors such as price increases, significant downturns in customers and changes in
operations can mean the budget should be updated throughout the year. __TRUE__
21. Drag the Ticks
In order to have a budget change approved, you must prepare a report. Which of the following
must be included in the report?
1. Explanation of the idea ✓

2. Costs ✓
3. Reasons for the change ✓
4. Customer feedback
5. Benefits to the department ✓
6. Benefit to the business ✓
7. Marketing material
22. True or False
Often the staff on the front line will have more of an idea of the reasons for the variance than
managers, and will be able to give suggestions for improvement. _TRUE___
23. Drag the Ticks
Which of the following are factors that can cause variances in staff budgets?
1. Skills of the manager in rostering ✓

2. Efficiency of staff ✓
3. Staff on unplanned leave, sick leave etc. ✓
4. Using too much casual labour ✓
5. Extra demand requiring extra staff ✓
6. Paying annual leave loading
7. Needing to ‘pay out’ a staff member who leaves ✓

American College
RTO Code: 31897
CRICOS Code: 03149K
Indicate whether the following statements relating to Business Activity Statements are true or false:
1. Businesses that are registered for GST are required to lodge regular Business Activity Statements.
__TRUE __
2. The BAS is lodged either annually or every 6 months. _FALSE___
3. On one side of the form you will report the business’ total sales, export sales, GST-free sales,
capital purchases and non-capital purchases. _TRUE___
4. On the other side of the form you report on stock used, wastage levels, occupancy levels and
overall profit and loss. _FALSE___
5. On the back of the BAS, you will report on wages paid, tax withheld from wages (PAYGW),
other withholdings (such as ABN withholding), as well as PAYG instalment (PAYGI) income.
_TRUE ___
Assessment – 4 – checkpoints
SITXFIN004 Prepare and Monitor Budgets
Checkpoint 1
Q1.
What are external factors? How could external factors affect a business?
ANS :External factors can impact the ability of a business or investment to achieve its strategic goals and
objectives. These external factors might include competition; social, legal and technological changes, and
the economic and political environment . External Factors. Business planning is important for direction
and success. A key area of the planning process involves considering factors that could have an impact on
the success of your business. These might be external industry or environmental factors or
internal factors such as your own strengths and weaknesses
American College
RTO Code: 31897
CRICOS Code: 03149K
Q2.
Briefly explain the following types of reports:
Cashflow Reports: A cash flow statement, also known as statement of cash flows, is a
financial statement that shows how changes in balance sheet accounts and income affect cash and cash
equivalents, and breaks the analysis down to operating, investing, and financing activities. For example :
Cash flow from investing: ($1,000)
Cash flow from financing: ($2,000)
Cash flow from operations: $4,000
Net cash flow: $1,000
Occupancy reports: The Occupancy Report provides a historical report of occupancy by Room during a
specific date range. This report is typically used to analyze past Occupancy %, ADR, REVPAR by Room
Sales reports: A sales analysis report shows the trends that occur in a company's sales volume over time.
In its most basic form, a sales analysis report shows whether sales are increasing or declining. At any time
during the fiscal year, sales managers may analyze the trends in the report to determine the best course of
action.
Variance reports: A variance report is a document that compares planned financial outcomes with the
actual financial outcome. In other words: a variance report compares what was supposed to happen with
what happened. Usually, variance reports are used to analyze the difference between budgets and actual
performance
Expenditure reports: A report that tracks expenses incurred during the course of performing necessary job
functions. Examples include charges for gas, meals, parking or lodging. If your employees spend a lot
of money in cash, you need to make sure you have them list these expenditures on an expense
report form
Q3.
Briefly explain the following types of reports:
Covers reports: Is report that highlights the information contained in other report sheets.
Stock reports: Is a report showing the evaluation of a particular trading instrument, an investment sector
or the market as a whole. Stock analysts attempt to determine the future activity of an instrument,
Wastage reports: Is a report showing loss resulting from breakage, decay, handling, leakage, shrinkage,
etc., of goods or material.
Purchase summary report: Is a report by category showing the amount of orders you place with
suppliers for a given category of item.
Q4. Which types of business must file a Business Activity Statement? What are the components of a
Business Activity Statement?
Answer.
Businesses that are registered for GST are required to lodge regular Business Activity Statements.
American College
RTO Code: 31897
CRICOS Code: 03149K
On one side of the form you will report the business’ total sales, export sales, GST-free sales, capital
purchases and non-capital purchases.
On the back of the BAS, you will report on wages paid, tax withheld from wages (PAYGW), other
withholdings (such as ABN withholding), as well as PAYG instalment (PAYGI) income.
Q5. What is the importance of communicating staff’s responsibilities to help achieve budget?
Answer. The budgeting process, when done correctly, fosters communication within an organization.
Effective communication is important within any organization. The planning and budgeting process can
serve as a tool to facilitate communication. Through the planning and budgeting process, organizational
units communicate their desired plans/initiatives and the resources required to accomplish them. As
budget requests go up the chain for review/approval, upper management can consider these priorities
relative to those from other organizational units. Funding decisions are then communicated back down the
chain to communicate the priorities for the organization as a whole. This also communicates the
organization's priorities to external stakeholders. To accomplish the communication, both internally and
externally, the process and underlying information must be transparent, so all involved understand the
decisions made.
Q6. List 3 occurrences which would result in achieving a favourable variance in profit:
Answer.
 For a revenue budget, being over budget is considered a favourable variance as you have made
more revenue than expected.
 Increased revenue with costs remaining constant
 Increased revenue with costs decreasing
 Revenue remaining constant with costs decreasing
Q7. Explain the process of updating budgets:
ANS : Budgeting is a process whereby future income and expenditure are decided in order to streamline
the expenditure process. Budgeting is done in order to keep track of the expenditures and income. It serves
as a monitoring and controlling method in order to manage the finances of a business. It begins by
deciding upon the financial goals according to which the budget will be made. Other important activities
in the budgeting process include things such as forecasting, monitoring, controlling and evaluating the
financial goals.
Q8. In order to have a budget change approved, you must prepare a report. List 5 details that must be
included in the report:
Ans :
1. Explanation of the idea
2. Costs
3. Reasons for the change
4. Benefits to the department
5. Benefit to the business
Q9. List 6 factors that can cause variances in staff budgets:

Ans :
American College
RTO Code: 31897
CRICOS Code: 03149K
1. Skills of the manager in rostering
2. Efficiency of staff
3. Staff on unplanned leave, sick leave etc.
4. Using too much casual labour
5. Extra demand requiring extra staff
6. Needing to ‘pay out’ a staff member who leaves
American College

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Assessment Record SITXFIN004 Prepare and Monitor Budgets

Student Name JASWINDER KAUR

Course Code & Course SIT50416 Diploma of Hospitality

The candidate requires the following skill development before re-assessment:

The candidate has been provided Name of Assessor:

have been informed of the Signature of

I acknowledge that I understand the requirements to complete the assessment tasks

2nd Attempt Extension – Date: /

Assessment – 1 – Short Answers

180, Logan road

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

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

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

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

1. Whether the additional costs are justified.

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

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

21. Explain each of the following types of budgets:

Place/Location where assessment will be conducted; Timeframe for assessment tasks

Computer with Microsoft excel

Instructions for assessment including WHS requirements

a. Due to renovations the rooms available have been reduced to 96%.

a. The room service revenue from food needs to be increased by 15%.

Month Customer numbers Average Spend (Food) Average Spend (Beverage)

January 1850 $ 45.00 $ 9.70

8. Calculate the ‘Other overheads” for the operation.

9. Print a copy of the revised budget.

10. Print the revised budget showing all formulae used.

1. Legislation and regulations: it can impact on profit ratios. Changes in supplier or

1. Which reports would you need to prepare for these issues?

2. Who is it essential to involve when these matters need to be discussed?

3. Suggest options to address and rectify these issues.

By selling bottles at minimum price.

4. How could the cashflow issue be addressed?

Place/Location where assessment will be conducted; Timeframe for assessment tasks

1. Computers, printers and accounting software packages

Instructions for assessment including WHS requirements

6. Each change actioned taken as a result of underperformance must be documented and

Draft Budget Due: ______________________________________________

Final Budget Due: ______________________________________________

Restaurant Draft Budget Jul % Aug % Sep %

$46892 32.4 $48745 34.4 $45678 29

$127553 68 $116146 65 $132081 70.4

$15978 8.5 $15489 8.7 $23098 12.3

Feedback / Reasons for Adjustments Final decision

cost of sales food is high use seasonal products, use Agree

cost of sales food and Use seasonal proudest, use Agree

Find a better supplier

Add more $10000 revenue promote Agree

Salaries & Wages - Hire more junior worker or Agree

Restaurant Final Budget Jul % Aug % Sep %

Total Beverage Revenue

$42156 29.1 $41675 29.4 $45678 29

$132289 70.5 $125923 70.5 $132955 70.9

$15978 8.5 $15789 8.7 $16784 8.9

Total Revenue 179,564 100.0 170,539 100.0 173,607 100.0

Total Food Revenue 144,097 80.2 146,047 85.6 149,657 86.2

Total Beverage Revenue 35467 19.8 24,493 14.4 23,950 13.8

Cost of Sales Food 55,045 38.2 52,138 35.7 55,373 37.0

118571 66 112278 65.8 112247 64.7

Salaries & Wages - 19,545 11.6 21,555 12.6 18,818 10.8