| Student Name | Student Number | |||
| Unit Code/s & Name/s | ||||
| Assessment Type | Assignment | |||
| Assessment Name | Budget Case Study | Assessment Task No. | AS1 | |
| Assessment Due Date | Date submitted | |||
| Assessor Name | ||||
| Student Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature. | ||||
| Student Signature | Date | |||
Instructions to Student | General Instructions: The first assessment task for budgeting requires students to analyse a Case Study and to consider a number of changes or amendments. Once you have analysed the income and expenditure and built in all the changes, amend and recalculate the “revised income and expenditure budget” please calculate a net profit or loss. You should complete a comparison of budgeted versus actual and add the recommendations and suggestions to the case study. You will be provided with a number of templates or report formats to use to analyse and to provide recommendations, actions or alternative solutions. Remember to complete the report by providing opportunities for improvement in the future. You will be given two weeks to complete this exercise, and it will be submitted during class time. Additionally, all documents are to be presented in accordance with contemporary standards using electronic media wherever possible and presented without errors in spelling, punctuation and English usage. |
| Information / Materials provided: The case study is a take home activity and spreadsheet template is provided. All answers must be prepared using Microsoft Excel and submitted in via Connect.
Assessment Criteria: To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard: · Interpret financial information and data and data sources required for budget preparation · Analyse factors that impact the budget and integrate knowledge of budget preparation · Draft and prepare budget in a clear format, reflecting organisational objectives · Calculate income and expenditure with valid information · Monitor budget and amend budget figures to reflect actual expenditure and income · Include budget notes and budget deviation data · Allocate budget resources · Evaluate budgetary performance · Integrate knowledge of formats, use and contents of budgets and statistics · Complete budget within designated timelines | |
| Number of Attempts: You will receive two (2) attempts at this assessment task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and discuss the relevant sections / questions with you and will arrange a due date for the submission of your 2nd attempt. If your 2nd submission is unsatisfactory (U), or you fail to submit a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Rules. | |
| Submission details | Insert your details on page 1 and sign the Student Declaration. All students must upload this template for marking. |
| Instructions for the Assessor | The student must be provided access to information and resources which would normally be available in the workplace. Computers must be available for students to work in class, including accounting software packages and printers. Mark assignment as per marking criteria – make sure budget figures are accurate, amendments have been made correctly, and resultant calculations are correct. |
| Note to Student | An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide. |
ASSESSMENT TASK 1
BUDGET CASE STUDY
You are a Travel Advisor for DOMO Travel and specialize in group incentive tours. One of your regular clients James Furniture Store has asked you to plan an incentive trip for his top 10 sales staff and their partners. The sales staff will fly to Hayman Island and enjoy 3 nights at this exclusive resort. All meals, beverages and day excursions are to be included in the cost. Note: The tour guide must be included in the cost of all activities and meals but not the airfare and accommodation.
Three of your main suppliers have sponsored the trip and these contributions will be used to fund part of the cost. James Furniture Store will initially contribute $55,000 towards the budget.
| Wellness appliances | $30,000 |
| Trend Furniture | $15,000 |
| Snappy appliances | $18,000 |
Budget figures
The incentive trip will include the following expenses:
- Business class airfare $1250 per person return to Hamilton
- Accommodation is $3000 per room for 3 nights (single/twin/double – all the same cost)
- Transfers to Hayman Island are included in the room
- Drinks including wine and beer have been budgeted at $ 230 per person for the 4
- A motivational speaker has been booked for an all-inclusive cost of: $10,000
- Entertainment/ day trips
- Reef cruise including lunch $225 per person
- Island hopping cruise including lunch $120 per person
- Degustation dinner #1 is $195 per person
- Degustation dinner #2 is $200 per person
- Italian dinner is $150 per person
- Island Paradise Lunch is $110 per person
- Spa treatment at the hotel is $150 per person
- Cocktail party on arrival $90.00 per person
- Asian dinner wine $150.00 per person
- Asian dinner $90.00 per person
- Signage to welcome sales people to the island $250
- Hire of Conference Centre $4000 total
- Tour guide to manage the stay $1200 for the 4 days
- Prizes to give away during the trip for karaoke competition $3000
- Welcome gifts to be placed in guest rooms $5000 total
- Achievement award plaques for sales people $500 total
Actual figures
After the event, you adjust the budget with actual figures to determine the final cost analysis.
- All 10 sales people attended, but only 8 partners came and they all stayed in the same room as their partner. Adjust the costs to reflect this number of people where necessary.
- The reef cruise increased to $250 per person
- Signage costs were actually $300
- Prizes came to $2750
- Snappy appliances contributed an additional $500
- James Furniture Store final contribution (actual) is a total of $58405
- Cocktail party on arrival reduced to $50.00
The Task
You have prepared a draft budget using some initial figures, however you are concerned
there are some areas which are incorrect. Using the above information, adjust your
budget to reflect the correct figures to enable you to complete the following:
- Use the information above to modify and prepare:
- Income budget for the incentive trip.
- Expenditure budget for the incentive
- Calculate and show the budgeted profit or loss for the
- Calculate and show the budgeted profit as a percentage of (Show the percentage to one decimal place).
- Use the information above to:
- Create a variance analysis showing the budgeted figures and the actual
- Calculate the variance in dollars and as a percentage of the budgeted
- Comment on the reasons why these variances occurred (Budget notes)
- Perform the following tasks:
- Identify any actual figures that are greater than $50.00 and 5% in
- Make a budget note on the spreadsheet to indicate whether you were able to keep food and beverage expenditure under $25000.
- Identify any actual figures that are greater than $50.00 and 5% in
- Calculate the total costs and make a budget note to indicate whether you stayed within budget. Provide this as a percentage (%) budget deviation (surplus or deficit)
Note: The points in bold above indicate specific information that must be included on your budget spreadsheet in the form of budget notes.
