Course Title: Manage budgets and forecasts

Part B: Course Detail

Teaching Period: Term1 2020

Course Code: ACCT5426C

Course Title: Manage budgets and forecasts

School: 650T Vocational Business Education

Campus: City Campus

Program: C5390 - Diploma of Accounting

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:

Meetu Aggarwal

Contact no: 9925 1621

Email:meetu.aggarwal@rmit.edu.au

Contact hours: 

Monday and Tuesday: 8:30am - 5:30pm

Thursday and Friday: 8:30am - 2:30pm

 

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, document, and manage budgets and forecasts. It encompasses forecasting estimates and monitoring budgeted outcomes.

It applies to individuals who use specialised knowledge and analytical skills to prepare and manage strategic organisational information.

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:

FNSACC513 Manage budgets and forecasts

Element:

1. Prepare budget

Performance Criteria:

1.1 Establish budget objectives and confirm their consistency with organisational policies and procedures

1.2 Define cash, expenditure and revenue items and ensure items are relevant to budget

1.3 Identify and include milestones and performance indicators in budgets to monitor financial performance and break down annual budgets into seasonal periods according to operating trends

Element:

2. Forecast estimates

Performance Criteria:

2.1 Identify required data for forecasts and anticipate changes in circumstances

2.2 Establish assumptions and parameters and review for accuracy, relevance, and compliance with organisational policies and procedures

2.3 Provide realistic estimates of future cash flow, costs and revenues in line with ethical and organisational requirements, and support with verifiable evidence and source documentation

2.4 Identify financial risks and propose protection strategies according to organisational policies and procedures

Element:

3. Document budget

Performance Criteria:

 

3.1 Present data in a clear format appropriate to budget reporting

3.2 Complete reports for specified periods and projects within agreed timeframes

3.3 Identify feasibility of forecasts by comparing projections with market growth and development

3.4 Distribute budget report to required personnel

Element:

4. Monitor budget outcomes

Performance Criteria:

4.1 Analyse budget variances according to organisational procedures, and make recommendations to address variances to client or designated person

4.2 Review budget processes and implement process changes as required


Learning Outcomes



Details of Learning Activities

Primarily you will be learning on a face to face basis with the support of an online course site for dissemination of materials and some assessments. Students will be expected to attend two hours of class each week in the semester. Students will be introduced to budgets, which will then be supported by practical illustrations. Students will complete exercises to reinforce their understanding of the material. Solutions will be available on the learning hub.


Teaching Schedule

The Teaching Schedule for this course is as follows:

 

 Induction Session

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

 

·        Program  overview and requirements

·        MyRMIT/Canvas

·        Overview of assessment requirements

·        Pre-Training Review including:

o   Recognition of Prior Learning and Credit Transfers

o   Assessment of current skills and knowledge

·        Competency/Grading Criteria

·        Plagiarism

·        Appeals

·        Extensions

·        Feedback

·        Privacy

·        Submission requirements

·        Resubmission policy

·        Where to get support

·        Student Charter

 

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 but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities

 

Week

 

Assessments to be completed in your own time

1

Introduction to course including course guide, RPLs and use of Canvas.

 

Introduction to Budgeting:

  • Reasons for budgeting
  • Master budget and its components
  • Types of Budgets
  • Budget development process
  • Management Cycle: Budgeting and leadership
  • Importance of monitoring performance
  • Leading continuous improvement

 

Chapter 1

End of chapter questions Q1 to Q12

 

 

2

Forecasting:

  • Use of statistics for decision making
  • Forecasting methods and trends
  • Risk analysis when forecasting
  • Preparation prior to construction of budgets
  • Processes used to prepare effective budgets

 

Chapter 2

End of chapter questions Q1 to Q7

 

 

3

Operating Budgets – Manufacturing:

  • Production budgets
  • Purchase budgets
  • Direct labour budgets

 

Chapter 4

End of chapter questions Q2 to Q10

 

 

4

Operating Budgets – Manufacturing:

  • Factory overhead budgets
  • Cost of production budgets
  • Expense budgets

 

Chapter 4

End of chapter questions Q11 to Q17

 

 

5

Operating Budgets – Manufacturing:

  • Cost of goods sold budget
  • Comprehensive questions related to the topic

 

Chapter 4

End of chapter questions Q18 to Q22

 

 

6

Operating Budgets – Manufacturing:

  • Comprehensive questions related to the topic

 

Chapter 4

End of chapter questions Q23 to Q26

 

Release of Online quiz 1: Based on materials covered up to week 6. To be done in your own time

 

 

7

Cash Budgets:

  • Accounts receivable collections budget
  • Cash receipts budget

 

Chapter 5

End of chapter questions Q1 to Q9

 

 

8

Cash Budgets:

  • Cash payments budget
  • Preparing the cash budget

 

Chapter 5

End of chapter questions Q10 to Q14

 

 

9

Cash Budgets:

  • Preparing the cash budget

 

Chapter 5

End of chapter questions Q15 to Q22

 

Release of Online quiz 2: Based on materials covered from week 7 to 9. To be done in your own time

 

 

10

Financial Budgets:

  • Budgeted Income Statement

 

Chapter 6

End of chapter questions Q1 to Q5

 

Release of Assignment 1 Part A (group work). To be submitted by the end of week 13.

11

Financial Budgets:

  • Budgeted Income Statement
  • Budgeted Balance Sheet

 

Chapter 6

End of chapter questions Q6 to Q9

 

 

12

Financial Budgets:

  • Budgeted Income Statement
  • Budgeted Balance Sheet

 

Chapter 6

End of chapter questions Q10 to Q13

 

Pit stop 1: Problem solving Assignment 1 Part A

 

 

13

Financial Budgets:

  • Budgeted Income Statement
  • Budgeted Balance Sheet

 

Chapter 6

End of chapter questions Q14 to Q16 and 18

 

Pit stop 2: Problem solving Assignment 1 Part A

 

Submission of Assignment 1 Part A

 

Release of Assignment 1 Part B (individual work). To be submitted by the end of week 15.

14

Performance reports:

  • Monitoring and modifying the budget
  • Analysing variances and corrective action
  • Contingency plans and risk management

 

Chapter 7

End of chapter questions Q12 to Q28

 

 

15

Presentations related to Assignment 1 Part B

 

Submission of Assignment 1 Part B

16

Re-submission of Assignment 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid semester break will be from 9 April 2020 to 15 April 2020. Classes will resume from 16/04/2020.

The above weekly schedule can change in exceptional circumstances. Students will be expected to attend two hours of class each week. Students will be introduced to budgets, which will then be supported by practical illustrations. Students will complete exercises to reinforce their understanding of the material.

 


Learning Resources

Prescribed Texts


References

Manage Budgets and Forecasts, 7th edition by Richard Hughes & Tony Kirby

9781760730734


Other Resources

 

 


Overview of Assessment

Performance Evidence

Evidence of the ability to:

  • prepare, document and present budgets and forecasting estimates that comply with:
  • industry-standard accounting principles and practices
  • organisational policies and procedures
  • legal and ethical requirements
  • monitor budget outcomes periodically, analyse budget variances and their possible causes, and make required changes in response.

 

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 purpose and objective of budgets and forecasts, including relevance of milestones and key performance indicators
  • Principal ethical requirements associated with budgetary forecasting and projections within the context of the strength of assumptions and forecast reliabilities
  • Types and sources of data and information required for budgeting and forecasting
  • Budget forecasting techniques
  • Key features of organisational policies and procedures relating to budgeting and forecasting
  • Key principles of accrual accounting and double-entry bookkeeping, including:
  • how implementation affects budgeting and the monitoring of budget outcomes
  • Key principles and practices of:
  • corporate governance
  • statistical analysis and measures of variance

 

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 manage budgets and forecasts, including:
  • access to the internet
  • digital technologies to access, extract and share required information.

 

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 assessment task and gain competency in order to pass this course.

ASSIGNMENT - Part A (Due Date: WEEK 13)

You will be preparing various budgets of a simulated business and then you will be performing variance analysis. Based on this analysis, you will be suggesting various corrective actions which should be taken by the business in order to improve the position of the business. Two pit stop sessions have been planned in week 12 and 13 for you to discuss any issues related to the assignment.

This assessment is competency based and a CA (competent) must be achieved for this assessment. 

 

ASSIGNMENT - Part B (Due Date: WEEK 15)

You will be presenting your results of your analysis and suggestions to the business in an in-class power point presentation. It should not exceed 3-4 minutes.

This assessment is competency based and a CA (competent) must be achieved for this assessment. 

 

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

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

 

Re-submissions (VET Programs):

If you are found to be unsuccessful in a Course Assessment Task you will be allowed one re-submission only.  Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the re-submission.  The highest result you will receive if your re-submission 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

 

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 and 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