SITXFIN004 Assessment 1

Assessment 1

Your task: Answer each question below.

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

2. Describe how the following sources of data can be used for budget preparation.

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

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

5. How does involving staff “from the bottom up” in the budgeting process, help the business?

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

7. How does breaking the budget down into groups, departments, or income and expense categories help colleagues?

8. Name 3 people (job roles) you would circulate the draft budget to for feedback or approval:

9. The budgeting process requires strong negotiation skills. Why is it important to convince staff of the achievability of the budget?

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:

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

12. What information should department managers include in their monthly reports?

13. How often should the budget be compared to the actual accounting results?

14. Name and describe 5 financial reports you might generate from your accounting system to check your budget against actual income or expenditure.

15. Every revenue and expense item on the Profit and Loss Statement should be compared to what?

16. When revenue variances occur, why is talking to staff a good way to help identify and find options to address the issue?

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

18. Why is monitoring your budget progressively throughout the year so important?

19. How can you collect information to help create future budget plans?

20. Name an accounting program you can use to help manage budgets.

21. Explain each of the following types of budgets: