Course Title: Prepare operational budgets

Part B: Course Detail

Teaching Period: Term1 2008

Course Code: COSC5238C

Course Title: Prepare operational budgets

School: 650T TAFE Business

Campus: City Campus

Program: C4169 - Certificate IV in Financial Services (Accounting)

Course Contact : Laurine Symington

Course Contact Phone: +61 3 9925 5484

Course Contact

Name and Contact Details of All Other Relevant Staff

Ian Nash
Phone 992 55733

Nominal Hours: 40

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites


Course Description

This unit covers the competency to produce operational budgets.
This unit requires the application of skills and knowledge required to prepare operational budgets. The unit encompasses preparing budgets and documenting budgets. The unit can be applied across all sectors of the financial services industry. The unit has application to those job functions that have responsibility for preparing budgets, these may include accountant and divisional managers.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACCT403A Prepare operational budgets


Document budget.

Performance Criteria:

2.1 Data is presented in a format that is easily understood and appropriate to budget reporting
2.2 Reports are completed within timelines and distributed for specified periods and projects


Prepare budget.

Performance Criteria:

1.1 Cash, expenditure and revenue items are clearly defined and relevant to identified objectives of the budget
1.2 Budget objectives are clear and consistent with organisational aims and projects and with forecasts
1.3 Discussions and negotiations with stakeholders are conducted in a manner that promotes goodwill and ongoing co-operation
1.4 Milestones and performance are identified and included in budgets
1.5 Annual budgets are broken down into seasonal periods in accordance with operating trends

Learning Outcomes

Please refer to Elements of Competency.

Details of Learning Activities

Students will be expected to complete practical exercises both during the class time and at home to build on the skills required to successfully complete these units.
The practical/simulation tests will be used to gauge the level of understanding of the units and a number score will result from these activities.

Students will learn and demonstrate knowledge of :
Principles of budgetary control,
Forecasting techniques,
Principles of double entry bookkeeping,
Principles of statistical analysis and measures of variance, and
Organisational procedures and policies.
And skills including:
Interpersonal skills and communications,
Information technology use for the set up and analysis of spreadsheets,
Estimating, forecasting and analysis skills,
Reading, interpreting financial statements and reports,
Writing skills for reports and recommendations,
Numeracy for financial calculations and analysis, and
Recording, gathering and classifying financial information.

Teaching Schedule

Weekly Schedule

Week 1 – Feb 11 Budgeting fundamentals
Week 2 – Feb 18 Approaches to budgeting 
Week 3 – Feb 25 Forecasting and sales budgets
Week 4 – Mar 3 Forecasting and sales budgets
Week 5 – Mar 10 Cash Budgets Test One: Underpinning knowledge and the theory behind budgeting, the benefits of budgeting and the role of budgeting in an organisation. (10%)
Week 6 – Mar 17 Cash Budgets 
Week 6 – Mar 24 Cash Budgets 
Week 7 – Mar 31 Master budgets- service organisation
Week 8 – Apr 7 Test 2 Test Two will review the creation of Master budgets for a service entity (40%)
Week 9 – Apr 14 Introduction to Merchandising entities- Cost of goods sold budgets
Week 10 – Apr 21 Master budgets- trading business
Week 11 – Apr 28 Master budgets- trading business
Week 12 – May 5 Master budgets- trading business
Week 13 – May 12 Master budgets- trading business
Week 14 – May 19 Master budgets- trading business
Week 15 – May 26 Trial test 3  This will be a trial for test 3 for next week
Week 16 – June 2 Test 3 Test Three will be the creation of a set of budgets for a merchandising entity. A full set of budgets will be required to be produced in this assessment. (50%)
Week 17 – June 9 Resits
Week 18- June 16 Review of program 1

Learning Resources

Prescribed Texts

National Institute of Accountants, 2006. Budgeting a practical approach, Pearson Education Australia.


Non Presribed

Other Resources

Overview of Assessment

This unit is co-assessed with BSBADM404A Develop and use complex spreadsheets [COSC 5240C]
The assessment for this cluster is a series of tests and a folio of evidence. The “folio of evidence” is a collection of exercises which may have been completed during the classes and then submitted to support the grade of competent. The tests will then be used to allocate a number grade which is only available after the folio has been deemed competent. It is through the results of the tests that students will receive an indication of their progress.

Assessment Tasks

The student must demonstrate an understanding of all elements of a particular competency to be deemed competent. Assessment methods have been designed to measure achievement of each competency in a flexible manner over a range of assessment tasks.
Assessment will incorporate a variety of methods including a folio of evidence, practical problem solving exercises and practical tests. Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are being met.
Test One will assess the theory behind budgeting, the benefits of budgeting and the role of budgeting in an organisation. (10%)
Test Two will review the creation of a Budgeted Statement of Financial performance for a service entity and the preparation of the cash flow statement for a service entity. (40%)
Test Three will be the creation of a set of budgets for a merchandising entity. A full set of budgets will be required to be produced in this assessment. (50%)
The program of tests is designed to build on the practical exercises submitted as the folio of evidence, and be used to guarantee the student’s understanding of the concepts presented. These will be closed book requiring application of the practical skills developed during the semester.

Assessment Matrix

Other Information

This program will also incorporate elements of Employability Skills. Various skills may include communication, problem solving, initiative and enterprise, planning and organising, self management, learning and technology
Students must pass each test and provide a satisfactory Folio of Evidence to be eligible to be deemed Competent in this unit.

Course Overview: Access Course Overview