Course Title: Prepare operational budgets
Part B: Course Detail
Teaching Period: Term2 2023
Course Code: OFFC5335C
Course Title: Prepare operational budgets
Important Information:
Please note that this course may have compulsory in-person attendance requirements for some teaching activities.
To participate in any RMIT course in-person activities or assessment, you will need to comply with RMIT vaccination requirements which are applicable during the duration of the course. This RMIT requirement includes being vaccinated against COVID-19 or holding a valid medical exemption.
Please read this RMIT Enrolment Procedure as it has important information regarding COVID vaccination and your study at RMIT: https://policies.rmit.edu.au/document/view.php?id=209.
Please read the Student website for additional requirements of in-person attendance: https://www.rmit.edu.au/covid/coming-to-campus
Please check your Canvas course shell closer to when the course starts to see if this course requires mandatory in-person attendance. The delivery method of the course might have to change quickly in response to changes in the local state/national directive regarding in-person course attendance.
School: 525T Business & Enterprise
Campus: City Campus
Program: C4398 - Certificate IV in Accounting and Bookkeeping
Course Contact: Doug Gourlay
Course Contact Phone: +61 3 9925 5944
Course Contact Email: doug.gourlay@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
Course Coordinator and teacher: Meetu Aggarwal
Phone: +61 3 9925 1621
E-mail:meetu.aggarwal@rmit.edu.au
Contact hours (appointment only):
Monday to Friday 10am - 5:30pm
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
None
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.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title: |
FNSACC412 Prepare operational budgets |
Element: |
1. Prepare budget |
Performance Criteria: |
1.1 Confirm budget objectives are consistent with organisational aims, projects and forecasts 1.2 Define cash, expenditure and revenue items and ensure they are relevant to budget 1.3 Discuss and clarify identified budget information with stakeholders according to organisational procedures |
Element: |
2. Set budget timeframe |
Performance Criteria: |
2.1 Identify, confirm and include milestones and performance indicators in budget 2.2 Break down annual budgets into seasonal periods according to organisational operating procedures |
Element: |
3. Document budget |
Performance Criteria: |
3.1 Present data in a clear format appropriate to budget reporting 3.2 Complete and distribute reports for specified periods and projects within agreed timeframes 3.3 Monitor budget variance and seek direction from client or designated person to address variance as required |
Learning Outcomes
Details of Learning Activities
Students will be expected to attend face to face/online class each week in the semester. Students will be introduced to budgets and MS Excel, which will then be supported by practical illustrations. Students will complete exercises to reinforce their understanding of the material. Solutions will be available in Canvas.
Both of these courses will be delivered simultaneously.
Teaching Schedule
Week |
Topics |
Assessments |
1 |
Pre-class work: · Familiarise with course and Canvas shell navigation · Reading help and support information · Understanding RMIT policies and guidelines · Checking Collaborate Ultra- Student guide · Viewing Course guide information · Getting information on required learning resources Chapter 1 The Budgeting Process 1.1 What is Budgeting 1.2 Classification of Budgets 1.3 The Budgeting Process 1.4 Forecasting |
Discussion on Assessment 1 Online Quiz 1 |
2 |
Chapter 2 Sales and Revenue Budgets 2.1 Revenue Forecasting 2.2 Sales Budgets |
|
3 |
2.2 Sales Budgets (continued) 2.3 Fees Budgets |
Online Quiz 2 Submission of Assessment 1 |
4 |
Chapter 3 Operating Budgets - Non-Manufacturing 3.1 Overview 3.2 Purchases Budgets 3.3 Cost of Goods Sold Budget: Retail and Trading Businesses
|
Discussion on Assessment 2 |
5 |
Chapter 3 Operating Budgets - Non-Manufacturing continue 3.3 Cost of Goods Sold Budget: Retail and Trading Businesses 3.4 Expense Budgets Pit stop 1 – Assessment 2 |
|
6 |
Chapter 3 Operating Budgets - Non-Manufacturing continue 3.5 Budgeted Income Statement 3.6 Budgeted Balance Sheet Pit stop 2 – Assessment 2 |
|
7 |
Chapter 4 Cash Budgets 4.1 Introduction to Cash Budgets 4.2 Accounts Receivable Collections Budget 4.3 Cash Receipts Budget 4.4 Cash Payments Budget 4.5 Preparing the Cash Budget Pit stop 3 – Assessment 2 |
|
8 |
Chapter 4 Cash Budgets continue 4.5 Preparing the Cash Budget 4.6 Comprehensive Examples 1.5 Budget Monitoring and Control Pit stop 4 – Assessment 2 |
Submission of Assessment 2 |
9 |
Final week to submit all assessments, re-submissions if required. |
|
Learning Resources
Prescribed Texts
Prepare Operational Budgets by Richard Hughes and Tony Kirby, 7th edition by Learn Now Publications |
978-1-76073-288-2 |
References
Other Resources
Overview of Assessment
Performance Evidence
Evidence of the ability to:
- establish and confirm budgetary milestones and performance indicators
- collect financial data and prepare operational budgets for a range of organisations
- identify budget variances and report variances to designated stakeholders
- record and document budget reports.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Knowledge Evidence
The candidate must be able to demonstrate the following knowledge to effectively complete the tasks outlined in the elements and performance criteria of this unit, and to manage tasks and reasonably foreseeable contingencies in the context of the work role.
- Key principles of budgetary control
- Range of forecasting techniques used when preparing operational budgets
- Key principles of statistical analysis and measures of variance in the context of financial data analysis and operational budgets
- Key features of organisational policies and procedures for financial administration as they relate to budgeting
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:
- office equipment, technology, software and consumables required to prepare operational budgets, including:
- digital systems and programs to assist in budget preparation and reporting
- templates for presenting financial data.
Assessors of this unit must satisfy the assessor requirements in applicable vocational education and training legislation, frameworks and/or standards.
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
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
Students MUST successfully complete the below mentioned two assessment tasks and gain competency in order to pass this course.
Assessment 1 - Due date: Week 3
This is an individual assessment that requires you to answer some questions. It will be based on materials covered from week 1 to week 2. You will work on this assessment in your own time and will submit it in Canvas by the end of week 3.
Assessment 2 - Due date: Week 8
This is an individual assessment that requires you to prepare various budgets and calculate variances for budget monitoring. It will be based on materials covered from week 2 to 8.
Students can be asked to reproduce any assessment piece in front of the teacher.
Assessment Matrix
The assessment matrix that maps all the assessment is available on CANVAS under Assignments.
All assessments will utilise a competency-based model and will be deemed as either Satisfactory or Not Yet Satisfactory.
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, Julie Macpherson, 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. More Information:https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/extensions-of-time-for-submission-of-assessable-work (https://www.rmit.edu.au/students/studentessentials/assessment-and-exams/assessment/extensions-of-time-for-submission-of-assessable-work) 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. More Information:https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/special-consideration (https://www.rmit.edu.au/students/student-essentials/assessment-andexams/assessment/special-consideration) Resubmissions (VE 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 result you will receive if your resubmission is successful is “CA”. 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: More Information:https://www.rmit.edu.au/students/student-essentials/assessment-and-exams/assessment/adjustments-to-assessment (https://www.rmit.edu.au/students/student-essentials/assessment-andexams/assessment/adjustments-to-assessment) 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. You will achieve one of the following results: Final results table: CA Competency Achieved NYC Not Yet Competent DNS Did Not Submit for assessment
Course Overview: Access Course Overview