SITXFIN003_Project
SITXFIN003_Project
SITXFIN003_Project
Assessment: - Project
Re-Assessment Conditions
• If the evidence is graded as NS – Not Satisfactory you will be required to
resubmit the evidence. In this case, you will be provided with clear and
constructive feedback based on the assessment decision so that they can
improve your skills / knowledge prior to reassessment.
• Where a ‘NS – Not Satisfactory’ judgement is made, you will be given
guidance on steps to take to improve your performance and provided the
Assessment Instructions:
1. Answer to the questions in a new word document.
2. Keep simple formatting with 12pt Arial and single line spacing.
3. Upload file to the drop box provided with a name containing your student ID
and unit code such as MACXXXX_SITXFIN003.
Questions
PART A
Top of the Town Hotel has asked you to calculate the variance for the following
figures for the month of July and August. Also calculate the total profit that was
budgeted and actual. Analyse the findings and inform them about the variance as
they are concerned and would like to monitor the income, expenditure, profit levels,
budgetary performance of their Food and Beverage Department.
The Hotel owners and managers would like to know from you the major areas
of concern where there is a deviation that needs further monitoring and
improvement.
Deals income has diminished, so we want to zero in on showcasing, promotions,
unique offers and compromise with local people. Food cost has expanded, we can
PART B
Questions:
1. Explain the importance to the owners of monitoring budgets and why do
you think it will help them to manage their finances better for the
business.
Monitoring budget is important to determine the cash flow, hence the profit or
loss. For example, in the above table, July month loss is $13000.00 and
august month loss is $7000.00. It requires the owners to provide funding off
$13000.00 in July and $7000.00 in august to balance the books. Insolvent
trading is against the law.
2. Explain to them the use of analysing the monthly budget and comparing
the forecasted budget against the actual budgets.
Analyzing the monthly budget, comparing the forecasting budget against the
actual budgets shows the above case, the business while losing money has
improved its position in reducing its variable costs i.e., food/beverage/ labour
increasing its sales revenue, below budgets in August month.
4. Research and suggest what improvements do you think the owners can
take to improve this situation?
Suggestions and improvement in the current situation by the owners:
Assess the situation
PART A
Read the following case study and answer the questions that follow:
Jo Swade imports vanilla pods for $8 per kg (including GST). He marks up the pods
by 50% and estimates that he will sell 5000 in January, and that this number will
increase by 30% each month for the next two months. On 1 January, Jo has $1000 in
the bank.
His monthly outgoings (including GST) for operations are expected to be:
• Purchases Assume, Joe buys the exact number he sells each month
• Shop expenses $4000
• Wages $5500
• Rent $2000
• Other costs $4000
• Jo also intends to draw $2500 per month as living expenses
• In February, Joe intends to spend $10 000 on a new computer and shop
fittings.
Prepare a cash budget for Jo for January to March, showing the amounts for each
month and the totals for the quarter
PART B
During the monitoring cycle you are required to undertake 2 of the following
processes to inform management of the actual budget:
(you clearly need to select these relevant for the performance of your budget; for
example if your staffing and rostering performs within the budget and service
provisions are being met, then it would be unlikely that you would need to reduce
staff or cut rosters; if your budget is created on the best quotes received from
suppliers and the quality is perfect, then this aspect is likely not one that would be
changed)
Attach details for each process you have undertaken clearly marked “TASK 2 –
process: __________”.
Details for each process selected must include the following details:
(For example, if you changed a roster, you need to provide the information why this
was done, what the changes will achieve in $ values for the budget, and attach the
old and revised roster to this project)
1. Nature of the problem
2. Reason for undertaking the selected process
3. What did you do? Who was involved? What was discussed? What was agreed
on? What was achieved in the process?
4. What was changed?
5. How were any changes implemented?
1. Discussions with existing suppliers.
Nature of the problem – demotivation of the employees within an organization.
Reasons: To basically the need for the employees to meet dynamic nature of the
issues that have been revolving within an organization.
Steps and business process: The people that were involved includes the chief
executive officer as well as the director who heavily contributed on the need for
safety and meeting the market specifications. The major issues that were
discussed includes; safety, meeting market demand as well as quality of the
products.
Change: Normal training is changed to in depth training through attending of
chemical summits as well workshops focusing on safety and quality.
Implementation of changes: Human resource team has changed their styles of
training and the company has been focusing on training more than just sales
which I believe would mitigate the challenges of safety as well as quality.
2. Evaluation of the requirements of rostering and staffing
PART C
Identify any reports, which you need to complete during the 3-month budget cycle.
Set the times these are due in the table below and complete these reports to the set
due dates.
Attach each report to this project on completion of the monitoring cycle.
Type of report Frequency Due Date(s) Completed by
Stock labels monthly end week 4 A sous chef with
Report an apprentice
(22/05/2022)
end week 8
(19/06/2022)
end week 12
(16/07/2022)
Stock audit monthly end week 4 A sous chef with an
reporty apprentice
(22/05/2022)
end week 8
(19/06/2022)
end week 12
(16/07/2022)
Staff cost reports monthly end week 4 General manager
and HR manager
(22/05/2022)