Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371
CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 Tel: +612 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 Tel: +612 8959 6340 F 02 9955 3888
Canberra Campus:Suite1, Level 4, 40 Cameron Avenue, Belconnen ACT 2617 Tel:+612 6253 5184
BSBFIM601 Manage finances
Assessment Task 1 - Assignment
Question 1
a) Explain in one paragraph what is the purpose of conservatism?
b) What are the two key accounting that are directly relevant to gathering revenue
data for statutory recording and reporting?
c) According to the AASB, what does a set of financial statements comprise?
d) Review the features of off-the-shelf business management and accounting
software products.
e) Imagine you are running a retail business, selling products via a bricks and mortar
site and online. You need to manage inventory, point-of-sale and payroll, and
would like a cloud-based system to work on financial planning and management
at your warehouse, retail space and home on a variety of devices. Which product
would you purchase? Why?
Question 2
a) Calculate the revenue, gross profit and net profit margins for these products.
Product COGS/ Fixed Selling Gross Units Revenue Gross Net
unit costs/unit price/unit profit/unit sold profit profit
margin margin
Front $27.00 $16.00 $89.00 $62.00 40
pocket
wallet
Compact $29.00 $17.00 $99.00 $70.00 37
smart
phone
wallet
b) What is the formula for calculating the contribution margin?
c) When calculating the contribution margin, why are only variable costs considered?
d) In what three ways does horizontal analysis look at the change in each item of the
financial statements?
BSBFIM601 Assessment Task 1 v2.11
Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 Tel: +612 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 Tel: +612 8959 6340 F 02 9955 3888
Canberra Campus:Suite1, Level 4, 40 Cameron Avenue, Belconnen ACT 2617 Tel:+612 6253 5184
Question 3
Explore the ATO’s website, visiting the sections for business, non-profit organisations
and superannuation.
a) What are the due dates for lodging and paying an organisation’s business activity
statement (BAS) online?
b) What are the due dates for an organisation’s lodgement of their income tax
return?
Question 4
a) What three budgets and budgeted statements should an organisation’s matter
budget include to ensure effective decision-making and probity and to meet
statutory and legislative requirements?
b) Explain the difference between incremental and zero-based budgeting methods.
c) Is zero–based Budgeting a more appropriate method of allocating resources for
organisations with new strategies requiring new organisational activities? Explain
your answer.
Question 5
a) What is the formula to calculate an organisation’s net cash position?
b) During the budget development processes, when are qualitative methods more
commonly used?
c) Conduct research into appropriate qualitative and quantitative forecasting
methods.
(a) Provide two examples of qualitative analysis techniques or tools.
(b) Provide two examples of quantitative analysis techniques or tools.
d) In preparing the expenses budget, should the variable costs be excluded? Why or
why not?
Question 6
Explain in one paragraph, why it is essential that budgets are clearly explained to all staff,
and why managers must use active listening techniques to do so.
Question 7
a) Conduct research on ‘due diligence’. Explain the difference between supplier due
diligence and customer due diligence.
BSBFIM601 Assessment Task 1 v2.11
Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 Tel: +612 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 Tel: +612 8959 6340 F 02 9955 3888
Canberra Campus:Suite1, Level 4, 40 Cameron Avenue, Belconnen ACT 2617 Tel:+612 6253 5184
b) Explain the value of supplier due diligence in managing procurement risk.
Question 8
a) What measures might you implement if your analysis of the payables ageing
summary identified that the organisation is consistently late in paying bills?
Report of finances
Question 9
a) According to the ‘AASB Standard 101 Presentation of Financial Statements’, what
is the purpose of a supporting note?
b) Access the Standard Business Reporting website at: www.sbr.gov.au, then
explain what the Australian Reporting Dictionary is.
Question 10
In one paragraph explain the importance of reviewing and improving internal financial
controls.
BSBFIM601 Assessment Task 1 v2.11
