SITXFIN004 (Assessment 1)

RTO No. 45485 | CRICOS No.
03754M
Assessment Task
SITXFIN004 - Prepare and monitor budgets

Version 2.0: October 2021 (R. Thomas)
Copyright@2021, Australian International Institute of Technology. All rights reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by
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Postal address: Ground Floor, 313 - 315 Flinders Lane, Melbourne, Victoria. 3000.
Australian International Institute of Technology

RTO No. 45485 | CRICOS No. 03754M
Assessment Task
Version 2.0 | Last update: 12/10/2021
Page 1 of 19
Student Assessment Agreement
Please ensure you read through and understand the Assessments Conditions, Assessment Tasks and
General Requirements in this Student Guide and Assessment Workbook before you complete and sign the
agreement below.
If there is anything that you are unsure of, consult your assessor prior to signing this agreement.
Have you read the assessment requirements for this unit?  Yes  No
Do you understand the requirements of the assessments for this unit?  Yes  No
Do you agree to the way in which you are being assessed?  Yes  No
Do you have any specific needs that should be considered?  Yes  No
If so, explain these in the space provided below:
Do you understand your rights to re-assessment?  Yes  No

Do you understand your right to appeal the decisions made in an assessment?  Yes  No
Student Name
Student Number
Student Signature
Date
Assessor Name
Assessor Signature
Date
Final Record of Competency
This form is to be completed by the assessor and used as the ‘final record of competency’.
All student submissions including any associated evidence are to be submitted for filing before issuing to the
Student Services Administration for processing.

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Finally, Student Academic Results and Assessment Feedback are to be entered into the Academic Result
Spreadsheet and forwarded to Student Services Administration [email protected].
Reference: Clauses 1.8 to 1.12 - Conduct effective assessment
Student Name
Student Number
Final Result
S = Satisfactory
NS = Not Satisfactory
Unit of Competency Assessment Summary NA = Not Assessed
S NS NA
Assessment Task 1 Knowledge ☐ ☐ ☐

Final Overall Assessment Result Competent Not Yet Competent
Additional Supporting Comments and Feedback
Trainer and Assessor Student
I, the undersigned, have received, discussed, and

I, the undersigned, declare that I have conducted a
accepted my Assessment result as above for this
fair, valid, reliable, and flexible assessment with this
unit and I am aware of my appeal rights as per the
student, and I have provided fair, relevant, and
Student Complaints and Appeals policy and
appropriate feedback.
procedure.
Name Signature
Signature Date
Date
☐ The student did not attend the Assessment feedback session
Assessment Task Summary
The unit of competency is classroom-based delivery face to face and practical demonstrations completed
within a simulated work environment with trainer led training in classrooms, business operational
environments and computer labs consisting of direct observation, product-based methods, portfolios,
Assessment Task
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questioning and third-party evidence (if appropriate, relevant, and verified).
The assessment tasks for SITXFIN004 - Prepare and monitor budgets are included in this Student Guide
and Assessment Workbook which are outlined in the assessment plan below.
To be assessed as competent for this unit, you must complete all scheduled assessment tasks satisfactorily.
Assessment Task Assessment Context Assessment Evidence Type
Assessment Task 1 Demonstrated knowledge required to Knowledge

(Knowledge) complete the tasks outlined in elements and
performance criteria of this unit of Task - Short Answer Responses
competency
Glossary of Common Terms in Assessment Task Questions
Provided below is a set of commonly used terms in the Assessment Task questions to assist students
understanding what is being described.

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To assist students with answering Assessment Tasks questions, the meaning of each of the listed key terms
is provided below for your reference and guidance only.
Analyse – is to answer in detail and identify important points and key features.
Compare – is to show how two or more things are similar, ensuring that you also indicate the relevance of
the consequences.
Contrast – is to contrast something, you will need to show how two or more things are different, ensuring
you indicate the relevance or the consequences.
Discuss – is to discuss something, you are required to point out important issues or features and express
some form of critical judgement.
Describe – is to describe something, you should state the most noticeable qualities or features.
Evaluate – is to assess something, you should put forward arguments for and against the concept being
checked.
Examine – is to investigate or scrutinise something, this is similar to “analyse”, where you should provide a
detailed response with key points and features and provide critical analysis
Explain – is to make clear how or why something happened or the way it is.
Identify – it means that you are asked to briefly describe the required information. Generally, you are
expected to write a response two or three sentences long.
List – it means that you are asked to briefly state information in a list format.
Outline – is means giving only the main points. Keep the response a few sentences long.
Summarise – it means (like “outline”) only giving the main points. Keep the response a few sentences long

Assessment Task
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Assessment Task 1 Summary Cover Sheet
Student Declaration
To be filled out and submitted with assessment responses
 I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded
with any other student(s).
 I understand that if I If I am found to have plagiarised, cheated or colluded, action will be taken
against me according to the process explained to me.
 I have correctly referenced all resources and reference texts throughout these assessment tasks.
Student Name
Student ID number
Student signature
Date
Assessor Declaration
 I hereby certify that this student has been assessed by me and that the assessment has been carried
out according to the required assessment procedures.
Assessor Name
Assessor Signature
Date
Assessment Outcome S NS DNS Resubmission Y N
Feedback
Student Result Response

 My performance in this assessment task has been discussed and explained to me.
 I would like to appeal this assessment decision.
Student Signature
Date
A copy of this page must be supplied to Administration and is recorded kept in the student’s file with all
supporting Assessment evidence.
Assessment Task 1 - Knowledge

Assessment Task
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Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of
this unit of competency.
This assessment task must be conducted as per the Assessment Conditions

Assessment
Conditions
In Class Activity Self-Directed Research Task
Duration Trainer Discretion in alignment with the Training Plan and Timetable
Evidence Submission
Requirements
The completed and signed Assessment Tool
First Attempt 2nd Attempt Final Attempt Extension – Date: / /

Satisfactory Not Satisfactory Did Not Submit
Task
☐ ☐ ☐
All short answer responses attempted and correctly answered
Assessor Feedback and Comments
Reasonable Adjustment
Has reasonable adjustment been applied to this assessment? If YES Provide details for the requirements
and provisions for adjustment of assessment:
Overall Assessment Task Performance

Satisfactory Not Satisfactory
Assessment Task 1 ☐ ☐
Signed Date
Assessment Task 1 - Knowledge

Assessment Task
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Assessment Guidelines
The purpose of this assessment is to assess you 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

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 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.
Required Resources to Complete this Assessment Task
 Personal Computer with appropriate Word Processing software

 Wi-Fi or Internet Access

Assessment Task
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Assessment Instructions
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 assessment.
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.
1. What is a budget?
A budget is a spending plan based on income and expenses. In other words, it's an estimate of how
1 much money you'll make and spend over a certain period of time, such as a month or year.
Student Response was deemed  Satisfactory (S)  Not Satisfactory (NS)
2. List three (3) types of budgets.
Surplus Budget
1
Balanced Budget
2
Deficit Budget.
3
3. List three (3) factors you would consider when developing a budget.
People
1
Data
2

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Process
3
4. List five (5) types of data that may be considered while developing a budget.
Incremental
1
Zero-based
2
Activity-based
3
Negotiated
4
value proposition
5
5. List three (3) types of information sources to consult while developing a budget.
The business plan.

1
Historical information from the organisation's accounting system.

2
The knowledge of key personnel in the organisation.

3

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6. When analysing internal and external factors for potential impact on budget answer the following:
a) What are internal factors? Provide two (2) examples
Internal factors are those that you control, they come from within you.
1
Example:-
2  investment opportunities
 sources of income
b) What are external factors? Provide two (2) examples
External factors are things outside a business that will have an impact on its success.
1
Example:-
2  unemployment.
 new legislation.
7. List three (3) aspects of providing colleagues with an opportunity to contribute ideas.
Volunteer your time.

1
Give advice
2
Recognize their challenges.

3

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8. List three (3) methods of canvassing your colleagues or co-worker’s opinions regarding financial
awareness and operational performance.
Show Appreciation
1
Involve Employees in Decision Making

2
Entrust Employees with New Responsibilities

3
9. List five (5) types of information you would analyse when drafting a budget.
 The costs of purchasing or producing the product or service.

1 
 Sales and marketing costs.

2 
 Your business's administration and operation costs.

3
 All fixed, variable and semi-variable costs of business operation.
10. What action could you take if you having difficulty getting started with your draft budget?
Estimate Anticipated Costs,

1
Justify the Budget Outline

2

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Ensure Cost-Effectiveness.
3
11. List three (3) examples of fixed costs or overheads.
Depreciation
1
Insurance.
2
Interest expense
3
12. List three (3) factors on which you may base ambitious estimates of income and expenditure.
Level of income/wealth
1
Rates of interest.
2
Availability of/knowledge about savings schemes.

3
13. List three (3) relevant parties you may choose to consult for their input on your draft budget.
The finance department

1
The senior management

2

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The Subject Matter Experts
3
14. List three (3) ways to inform those concerned with budget allocation
By organizing meetings all can be informed in once in meeting.

1
By calling every one individually

2
By sending Email to all

3
15. List three (3) types of potential budget modifications.
incremental
1
activity-based
2
zero-based.
3
16. List three (3) factors on which modifications may be based.
Uncontrollable OTPS Accounts.

1

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Designated Funds Policies.
2
Operating Budget.
3
17. What does it mean to ensure your budget proposal is easy to read?
Provide a Breakdown of Costs

1 come under indirect costs. You can gather information related to both of these expenses by recording
each activity and its associated costs along with it. Make sure that both these costs are broken down
separately so that it's easier for the reviewers to understand your financial expenses.
18. List three (3) ways documenting budget decisions and responsibilities helps the overall performance
of your organisation.
revenues
1
discretionary spending
2
direct spending.
3
19. Explain why is it important to review your budgets?

Assessment Task
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Concentrating on the monetary arrangement will assist you with allotting your resources
1 proficiently, and you can limit the gamble of your general arrangement. It is basically
impossible that you can know when a health related crisis can occur. Any crisis can
exhaust for what seems like forever investment funds and can make a monetary weight
on you and your loved ones.
20. List three (3) functions of a budget committee.
Decide the company's general policies and objectives;

1
Receive and review individual budget estimates concerning different departments/units/divisions;

2
Suggest changes, modifications in accordance with organisational objectives;

3
21. Why do deviations occur?
The causes of deviations from ideal behaviour may be due to the following two assumptions of kinetic
1 theory of gases. The volume occupied by gas molecules is negligibly small as compared to the
volume occupied by the gas. The forces of attraction between gas molecules are negligible.

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22. List three (3) examples of what can change after preparing a budget.
errors
1
Changing business conditions

2
unmet expectations.
3
23. Describe the process of negotiation and list three (3) skills required for successful negotiation of a
budget.
Negotiations involve two or more parties who come together to reach some end goal through
1 compromise or resolution that is agreeable to all those involved.
Skills required
2  planning
 Communication
 problem-solving and listening
24. How would you store and file the budget reports according to organisational policy?
Organize Your Presentation

1
Provide History and Projections

2

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Present Analysis
3
25. Provide one (1) example of an accounting software program used to prepare and monitor budgets
and list key features and functions
QuickBook
1
+++ END +++

Assessment Task
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RTO No. 45485 | CRICOS No.

SITXFIN004 - Prepare and monitor budgets

Copyright@2021, Australian International Institute of Technology. All rights reserved.

Australian International Institute of Technology

Do you understand your rights to re-assessment?  Yes  No

Final Record of Competency

Australian International Institute of Technology

SITXFIN004 - Prepare and monitor budgets

Assessment Task 1 Knowledge ☐ ☐ ☐

Trainer and Assessor Student

I, the undersigned, have received, discussed, and

☐ The student did not attend the Assessment feedback session

SITXFIN004 - Prepare and monitor budgets

Assessment Task Summary

Assessment Task Assessment Context Assessment Evidence Type

Assessment Task 1 Demonstrated knowledge required to Knowledge

Glossary of Common Terms in Assessment Task Questions

Australian International Institute of Technology

Australian International Institute of Technology

Assessment Outcome S NS DNS Resubmission Y N

Student Result Response

Australian International Institute of Technology

This assessment task must be conducted as per the Assessment Conditions

First Attempt 2nd Attempt Final Attempt Extension – Date: / /

Assessor Feedback and Comments

Overall Assessment Task Performance

Assessment Task 1 - Knowledge

Australian International Institute of Technology

o Role and nature of budgets

 Internal and external factors that impact on budget development:

o Growth or decline in economic conditions

 Budget preparation and monitoring practices and techniques:

o Sources and contents of data required for budget preparation:

Australian International Institute of Technology

o Techniques for making budget estimates

Required Resources to Complete this Assessment Task

 Personal Computer with appropriate Word Processing software

Australian International Institute of Technology

Student Response was deemed  Satisfactory (S)  Not Satisfactory (NS)

2. List three (3) types of budgets.

Student Response was deemed  Satisfactory (S)  Not Satisfactory (NS)

Australian International Institute of Technology

Student Response was deemed  Satisfactory (S)  Not Satisfactory (NS)

Student Response was deemed  Satisfactory (S)  Not Satisfactory (NS)

The business plan.

Historical information from the organisation's accounting system.

The knowledge of key personnel in the organisation.

Student Response was deemed  Satisfactory (S)  Not Satisfactory (NS)

Australian International Institute of Technology

a) What are internal factors? Provide two (2) examples

b) What are external factors? Provide two (2) examples

Student Response was deemed  Satisfactory (S)  Not Satisfactory (NS)

Volunteer your time.

Recognize their challenges.

Student Response was deemed  Satisfactory (S)  Not Satisfactory (NS)

Australian International Institute of Technology

Involve Employees in Decision Making

Entrust Employees with New Responsibilities