Course Title: Prepare operational budgets

Part B: Course Detail

Teaching Period: Term2 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


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:

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


Prepare 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

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

Teaching Schedule

week beginningTutorial topicassessment
July 7Budgeting fundamentals 
July 14Approaches to budgeting 
July 21Forecasting and sales budgets (Service business)Test 1: Underpinning knowledge and the theory behind budgeting, the benefits of budgeting and the role of budgeting in an organisation. (10%)
July 28Forecasting and sales budgets (Service business) 
Aug 4Cash Budgets (Service business) 
Aug 11Review Test 1
Cash Budgets (Service business)
Aug 18Master budgets- (Service organisation) 
Aug 25Assessment WeekTest 2 will review the creation of Master budgets for a service entity (40%)
Sep 1Mid Semester Break 
Sep 8Introduction to Merchandising entities-
Cost of goods sold budgets
Sep 15Master budgets- trading business 
Sep 22Master budgets- trading business 
Sep 29Master budgets- trading business 
Oct 6Master budgets- trading business 
Oct 13Master budgets- trading business 
Oct 20Trial test 3This will be a trial for test 3 for next week
Oct 27Assessment WeekTest 3 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%)
Nov  3Resits  
Nov 10Review of program 

Learning Resources

Prescribed Texts

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


None prescribed

Other Resources

None prescribed

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

Course Overview: Access Course Overview