Course Title: Prepare operational budgets

Part B: Course Detail

Teaching Period: Term1 2016

Course Code: ACCT5384C

Course Title: Prepare operational budgets

School: 650T Vocational Business Education

Campus: City Campus

Program: C4366 - Certificate IV in Accounting

Course Contact : Ben Sethia

Course Contact Phone: +61 3 9925 5982

Course Contact

Name and Contact Details of All Other Relevant Staff

Angelo Sellan


Phone: 9925 5460

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 describes the skills and knowledge required to prepare and document operational budgets for a variety of organisations.

It applies to individuals who use specialised knowledge and systematic approaches to undertake strategic financial activity for an organisation.               

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACC402 Prepare operational budgets


1. Prepare budget

Performance Criteria:

1.1 Confirm budget objectives are consistent with organisational aims, projects and forecasts
1.2 Clearly define cash, expenditure and revenue items and ensure relevance to identified objectives of budget
1.3 Conduct discussions and negotiations with stakeholders that budget applies to in manner that promotes goodwill and ongoing cooperation


3. Document budget

Performance Criteria:

3.1 Present data in format that is easily understood and appropriate to budget reporting
3.2 Complete and distribute reports within timelines for specified periods and projects


2. Set budget timeframe

Performance Criteria:

2.1 Identify and include milestones and performance indicators in budget
2.2 Break down annual budgets into seasonal periods in accordance with operating trends

Learning Outcomes

Details of Learning Activities

A range of learning activities are planned for this course including self-paced and collaborative classroom based activities.

The self-paced activities will be delivered thought various technology platforms and include your contribution to wikis and discussion threads, reflective journals, quizzes and interactive sessions.

The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.
We expect you to participate and contribute in all scheduled learning activities.

Teaching Schedule

Induction Session

Prior to training commencement a program level induction session will be conducted that comprises the following:

  • Program overview and requirements
  • MyRMIT/Blackboard
  • Overview of assessment requirements
  • Pre-Training Review including:
    • Recognition of Prior Learning and Credit Transfers
    • Assessment of current skills and knowledge
  • Competency/Grading Criteria
  • Plagiarism
  • Appeals
  • Extensions
  • Feedback
  • Privacy
  • Submission requirements
  • Resubmission policy
  • Where to get support
  • Student responsibilities 

 The Teaching Schedule for this course (Full Time and Flexed) is as follows but please note that it is subject to change.

     Week Week CommencingTopics                                                             Assessment   
 1 08/02/16 The Budgeting Process; what & why 
 2 150/2/16 The Budgeting Process; how 
 3 22/02/16 Sales & Revenue Budgets Evidence portfolio; Q1
 4 29/02/16 (Non manufacturing) Operating Budgets; Purchases, COGS & Expenses Evidence portfloio; Q2
 5 07/03/16 (Non manufacturing) Operating Budgets; Budgeted Income & Budgeted Balance Sheet 
 6 14/03/16Cash Budgets Evidence portfolio; Q3
 7a 21/03/16Cash Budgets & Capital Budgeting 
  24/03/16 - 30/03/2016 - Mid Semester Break 
 7b 28/03/16Cash Budgets & Capital Budgeting 
 804/04/16 Master Budget - Service Organisation

 Evidence portfolio; Q4

Assignment; Sales Budget, Purchases Budget, COGS Budget Components

 911/04/16 Master Budget - Trading Organisation 
1018/04/16 Master Budget - Trading OrganisationAssignment; Operating expenses budget, Capital expenditure budget, Cash Budget components.
 1125/04/16 Variance Reports; Static Vs Flexible Budgets 
 1202/05/16 Task feedback and demonstraton Assignment; Completed Master Budget; submission of complete set of budgets, including Budgeted Income Statement and Budgeted Balance Sheet.
 1309/05/16 Task feedback and demonstration 
 1416/05/16 Task feedback and demonstration Assignment; submission of Variance Report component
1523/05/16 Task feedback and demonstration Resubmissions
 1630/05/16 Task feedback and demonstration Resubmissions

The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes bit also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Please note, it is anticipated that two collaboration sessions will be provided during the course for flexed students. The weeks in which these will occur will be announced on Blackboard during the course of the semester.  It is the responsibility of the student to have the required technical hardware necessary to participate in these sessions.

Learning Resources

Prescribed Texts

Prepare Operational Budgets (6th Edition) Richard Hughes & Tony Kirby LearnNow Publications


Other Resources

The Blackboard will be a significant source of other resources. Please refer to the Blackboard frequently for materials and announcements related to this course.


Overview of Assessment

In order to achieve competency in this unit, you must provide:

Performance Evidence

 Evidence of the ability to:

  • establish and confirm budgetary milestones and performance indicators
  • prepare budgets for a variety of purposes and organisations
  • accurately record and document budget reports

Knowledge Evidence

To complete the unit requirements safely and effectively, you must:

  • identify and explain the key principles of budgetary control
  • describe a variety of forecasting techniques
  • explain the principles of double-entry bookkeeping
  • outline the key principles of statistical analysis and measures of variance
  • describe the key features of organisational procedures and policy for financial administration

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

  • a range of common office equipment, technology, software and consumables

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.


Feedback will be provided throughout the semester in class and/or online discussions.  You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.

Assessment Tasks

Overview of Assessment

This course is delivered and assessed as a stand alone unit

The assessments for this course have been designed to allow participants  apply their learning to particular simulated work scenarios and demonstrate their competence in a variety of ways.

Evidence Portfolio (Due Date: See below for individual EP tasks )

The Evidence Portfolio (EP) comprises a total of four (4) online supervised (in class) tasks. The EP is simply a compilation of items used as evidence to show your competence against a set of criteria. The tasks you complete will be retained in the Blackboard system. In this case the EP is completed so as to meet criteria commensurate with many of the performance and knowledge evidence items listed above.

All individual EP tasks will be closely aligned with work exercises set in the weeks leading up to the tasks. These exercises will be featured in the Blackboard in the weeks prior to the EP tasks (please refer to the Blackboard frequently), you should therefore ensure you complete any set exercises prior to the related EP task.

The EP tasks are scheduled for classes conducted in the following weeks (dates shown week commencing)

EP Task 1 22/02/2016

EP Task 2 29/02/2016

EP Task 3 14/03/2016

EP Task 4 04/04/2016

The EP Tasks are OPEN BOOK assessments, you are permitted to use HARD COPY notes only; no soft copy or online real time facility allowed.

All four EP Tasks must be completed to a very high standard (i.e. minimul errors are accepted) in order for you to successfully complete this assessment.

You will have three attempts per EP task to satisfy the standard required. Only the first attempt is in class supervised, the other attempts, if required may be conducted outside of class unsupervised, and should be completed within two weeks of the first attempt.

Apart from competency, only the first attempt will contribute to grading for the course.

For purposes of grading the EP will contribute 80% of the grade.

Major Assignment: Master Budget and Variance Report (Due Date: see below for component due dates)

For this assessment task you will be provided with a case study related to a trading type entity from which you will be required  to complete a Master Budget along with a Variance Report. A Master Budget is a collection of smaller budgets; Sales Budget, Purchases Budget, COGS Budget, Expenses Budget, Cash Budget, Capital Expenditure Budget, Budgeted Income Statement, Budgeted Balance Sheet, we shall call these smaller budgets "components" of the Master Budget. The components of this assignment are required to be completed and submitted progressively through the semester.The due dates for component submission are the following;

Sales Budget, Puchases Budget, COGS Budget (Submission Due Date: 04/04/2016)

Operating Expenses Budget, Capital Expenditure Budget, Cash Budget (Submission Due Date:18/04/2016)

Master Budget (All budgets above with adjustments if required) including Budgeted Income Statement and Budgeted Balance Sheet  (Submission Due Date: 02/05/2016)

Variance Report (Submission Due Date: 16/05/2016)

The case study provides the student with opportunity to demonstrate the full scope of activities necassary for providing evidence of competency. The assignment will require the student to;

establish benchmarks

prepare and accurately record budget reports

apply simple stats for forecasting

balance the balance sheet

follow the policy / procedures of RMIT and the assignment

communicate effectively with the facilitator for clarification of assignment details and or corrective action.

This task must be completed to a very high standard (minimul errors / omissions)  in order for you to successfully complete this assessment. Only one resubmission per component is provided.


Apart from competency, this task will make up 20% of the grading for this course.






You must successfully complete all assessment tasks to achieve competency.

Assessment Matrix

Other Information

Submission Requirements

You should:

• Ensure that you submit assessments on or before the due date.
• Always retain a copy of your assessment tasks. (hard copy and soft copy)
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of each assessment task is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Callie Harvey, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.

Late Submission Procedures

You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.

If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days. <check links are still current>

More Information:

Form to use:

Where an extension of greater than seven days is needed, you must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination. <check links are still current>

More Information:;ID=g43abm17hc9w

Form to use:

Resubmissions (VET Programs):

If you are found to be unsuccessful in a Course Assessment Task you will be allowed one resubmission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.

If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.

Adjustments to Assessment

In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website: <check link is still current>
More Information:;ID=7usdbki1fjf31

Marking Guide (Competency):

You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you about your progress and how well you are performing.

Marking Guide (Grading)

After achieving competency we then grade your performance in the unit and you will achieve one of the following grades:

Final Grades table:

CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment

Further information regarding the application of the grading criteria will be provided by your teacher.

Course Overview: Access Course Overview