The candidate will demonstrate the ability to review and evaluate financial management processes.
Using the scenario information supplied, you will respond to a number of scenario tasks. You will collect and analyse financial data and make recommendations to improve existing processes. You will also create a plan to implement and monitor solutions.
1. Consider the scenario, tasks and financial informationcontained in the appendices of this assessment task.
2. On a separate electronic document, provide written responses to the following five tasks (i.e. tasks A to E).
3. Submit a document containing your responses to your assessor as per the specifications outlined below. Ensure you keep a copy of all work submitted for your records.
- submit answers on an electronic document such as Microsoft Word.
? profit and loss statements.
- No variation of the task is required.
- A follow-up interview may be required (at the discretion of the assessor).
- Documentation can be submitted electronically or posted in the mail.
- According to its policies, BRB offers 30 day terms to debtors.
- BRB does not currently train sales staff on credit terms.
- There is currently no enforcement of credit terms.
- Warehousing of stock is expensive at current leased premises.
- Many bicycles need to be thrown out if parts rust; this problem exacerbates the problem of waste expense.
You have the following information from the Statement of Financial Position and current ledger accounts in the electronic accounting system (MYOB AccountRight).
d. Show calculations and results on your response document for this assessment task.
3. On your response document, list three sources of information of use to complete this activity.
- The Indonesian plant has capacity to manufacture 8,000 units.
- Big Red Bicycle's strategic goal is to generate a pretax profit of $1,000,000 for the next financial year for Indonesian operations.
- Possibility exists for move to Indian plant with capacity for 10,000 units.
- Market for bicycles is growing rapidly and BRB will be able to sell all unitsproduced.
- Limited ability to renegotiate costs with suppliers.
- Pricing and cost information is as follows.
b. what the variable costs per unit would need to be to achieve profit target at current manufacturing capacity (show calculations).
2. On your response document, make one written recommendation based on your analysis. To support your recommendation ensure you refer to the organisational needs or situation, and any analytical techniques used. You may also suggest possible actions for BRB to take depending on possible future scenarios.
3. On your response document, list three sources of information of possible use to complete this activity.
Soon you will need to prepare a Business Activity Statement (BAS) for the first quarter on 2012/13.
1. State how many years you will need to keep GST records in order to satisfy ATO requirements.
2. Complete the GST budget on the following page to anticipate GST liability.
Choose one of the recommendations from Task A or Band develop an action plan to implement and monitor the recommendation. Ensure you include appropriate activities, monitoring, timelines and accountabilities.
4. describe profit and loss statements.
Summarise your reflections in a short, written statement and submit this to your assessor.
You may revisit the five fundamental principles of accounting.
1. Control - managers need to control and monitor the business.
2. Relevance - decision-makers need information that is timely, useful etc.
3. Compatibility - the accounting systems should match the aims of a company.
4. Flexibility - the accounting systems need to adapt to the company's needs.
5. Cost-benefit - the benefits of the accounting information system need to outweigh the cost.