Manage Budgets and Financial Plans (BSBFIM501)
TABLE OF CONTENTS
Assessment Task 1- Written Report………………………… .…..................3
Introduction…………………………………………………….....................3
Team budgets and financial plans…………………………….....................3
Making changes to team budgets or financial plans…………....................7
Contingency planning………………………………………….....................8
Financial Management Approaches………………………………..............9
Assessment Task2- Written Report………………………………..............10
Monitor and control Finances………………………………………...........10
Review Variances……………………………………………………............15
Review and Evaluate Processes…………………………………….........….17
ASSESSMENT TASK 1- WRITTEN REPORT
INTRODUCTION:
Kathmandu furniture is a manufacturer based in Glenorchy, Tasmania. The company produces furniture’s which are sold to relaters in the Australian market. According to company strategic plans, the company aims to achieve a net profit before tax of $1000,000. The major risk to this goal are:
Poor sales due to economic downturn
Increase in expenses such as wages
In further, Australian preparations, the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its product range to reduce poor sales of one product.
Budgeting and finance policy plan is very important as it helps to set the parameters for all financial budgeting. There are various plans and policies which should be followed strictly. All the reporting requirements, financial delegation and format for budgets and reports plays important role in whole plans and project.
1) Team budgets and financial plans.
The name of my organisation is Kathmandu furniture pty ltd. Furniture industry, all the companies and activities involved in the design, manufacture, distribution, and sale of functional and decorative objects of household equipment. ... Earlier furniture making was a handicraft, going back to the most ancient civilizations. The growing sophistication in technique brought a revolutionary change in the men who made furniture. Where previously carpenters and joiners had made furniture along with every kind of building construction in wood, several circumstances combined to create a new profession: that of cabinetmaker.
The senior management structure of the company is given below:
Person
Position
Kamala Lama
CEO
Henry Yeo
Managing Director
Lucy Gellar
CFO
Richey Burke
Senior Accountant
Sam Richard
Sales General Manager
Charles Pierce
Production Manager
Lucas More
HR Manager
Cash Flow projection
Receipts
Cash received from previous sales
$ 75,000
Cash received from cash sales
$55,000
(1)
$62,500
Expenditure
Cash paid for labour
$11,000
Cash paisa for rent
$8,500
Cash paid for marketing services
$800
Cash paid for stock
$31,300
Cash paid for Equipment
$750
(2)
$52,350
Cash increase during August (1) minus(2)
$10,150
Cash at start of August
$17,200
Cash at end of Augu ...
Manage Budgets and Financial Plans (BSBFIM501)TABLE OF CONTE.docx
1. Manage Budgets and Financial Plans (BSBFIM501)
TABLE OF CONTENTS
Assessment Task 1- Written Report…………………………
.…..................3
Introduction…………………………………………………….........
............3
Team budgets and financial
plans…………………………….....................3
Making changes to team budgets or financial
plans…………....................7
Contingency
planning………………………………………….....................8
Financial Management
Approaches………………………………..............9
Assessment Task2- Written
Report………………………………..............10
Monitor and control
Finances………………………………………...........10
Review
Variances……………………………………………………............
15
Review and Evaluate
Processes…………………………………….........….17
2. ASSESSMENT TASK 1- WRITTEN REPORT
INTRODUCTION:
Kathmandu furniture is a manufacturer based in Glenorchy,
Tasmania. The company produces furniture’s which are sold to
relaters in the Australian market. According to company
strategic plans, the company aims to achieve a net profit before
tax of $1000,000. The major risk to this goal are:
Poor sales due to economic downturn
Increase in expenses such as wages
In further, Australian preparations, the company is considering
manufacturing overseas to take advantage of reduced costs. The
company is also considering diversifying its product range to
reduce poor sales of one product.
Budgeting and finance policy plan is very important as it helps
to set the parameters for all financial budgeting. There are
various plans and policies which should be followed strictly.
All the reporting requirements, financial delegation and format
for budgets and reports plays important role in whole plans and
project.
1) Team budgets and financial plans.
The name of my organisation is Kathmandu furniture pty ltd.
Furniture industry, all the companies and activities involved in
the design, manufacture, distribution, and sale of functional and
3. decorative objects of household equipment. ... Earlier furniture
making was a handicraft, going back to the most ancient
civilizations. The growing sophistication in technique brought a
revolutionary change in the men who made furniture. Where
previously carpenters and joiners had made furniture along with
every kind of building construction in wood, several
circumstances combined to create a new profession: that of
cabinetmaker.
The senior management structure of the company is given
below:
Person
Position
Kamala Lama
CEO
Henry Yeo
Managing Director
Lucy Gellar
CFO
Richey Burke
Senior Accountant
Sam Richard
Sales General Manager
Charles Pierce
Production Manager
Lucas More
HR Manager
Cash Flow projection
Receipts
4. Cash received from previous sales
$ 75,000
Cash received from cash sales
$55,000
(1)
$62,500
Expenditure
Cash paid for labour
$11,000
Cash paisa for rent
$8,500
Cash paid for marketing services
$800
Cash paid for stock
$31,300
Cash paid for Equipment
$750
(2)
$52,350
Cash increase during August (1) minus(2)
$10,150
Cash at start of August
$17,200
Cash at end of August
$27,350
5. Long-term budgets/plans
Long term budget is a budget plan for long time of period more
than one year. In long-term budget the uncertainty is more than
in short-term budget because the market cycle and its
movements are more easily forecast in the short-term budget
plan. Long-term budget is specially used in big business with
big amount of investments. There are three types of budget such
as balances budget, surplus budget, and deficit budget.
Operational Plan
Operational plan is also known as work plan. It is a figure of
our department will give emphasis for the future use, mostly for
coming year. Just we need to put our strategic plan with our
future goal while making operational plan and we need to get it
in daily to weekly basis. It is plan which provides a clear
picture of how a team or department will do the activities to get
the objective of an organisation’s aim.
Store Budget
Sales Centre A
Sales Centre B
Sales Centre C
Sales Centre D
Sales Centre E
Sales
640,000
640,000
640,000
12. Water
25,000
6,250
6,250
6,250
6,250
Waste removal
50,000
12,500
12,500
12,500
12,500
TOTAL EXPENCES
1,544,000
386,000
386,000
386,000
386,000
NET PROFIT BEFORE TAX
1,086,000
271,500
271,500
271,500
271,500
2) Making changes to team budgets or financial plans.
The purposes of budgeting are for resource allocation, planning,
coordination, manage and motivation. It is additionally an
important tool for choice making, monitoring enterprise
performance and forecasting profits and expenditure. With
suitable budgeting, limited sources are managed efficiently.
Budgeting is indispensable in the business planning process. A
commercial enterprise owner has to predict whether or not the
corporation will be profitable. Budgeting offers a mannequin of
13. the manageable economic performance of a business, given that
precise strategies and plans are followed. It provides a monetary
framework for making essential decisions. To control a
enterprise effectively, expenditure ought to be appropriate
controlled. An instance of how budgeting performs a function in
decision making is when spending money on advertising. When
the finances allocated for this aspect has been absolutely used,
the decision is probable to cease spending cash on it. Budgeting
additionally helps measure the forecast business overall
performance towards the real commercial enterprise
performance.
Yes, it is achievable because of the variation in plans it helps
to analyse the problem or lack in the team budget and financial
plans. It is accurate because the software applications to be used
in reporting are very reliable and accuracy rate is high such as
software environment-windows
Accounting Information System-BRB will use MYOB Account
Right plus.
Data analysis-BRB will use Microsoft Excel
Actual results will be produced monthly by the MYOB
accounting System. Actual variances to budget will be
performed by Excel with a report prepared for senior
management for significant variances.
Budgeting and finance policy
14. Budget preparations
-Variations to the enterprise layout have to be authorised by the
CEO and senior managements strategic committee.
-The business design will set key parameters for all monetary
budgeting.
-Prior consequences are to be analysed in order to pick out the
profit level value centres, discover relationship between
monetary information and set key performance symptoms and
benchmarks for the future budgets.
-The price range planning committee will meet prior to price
range being developed and agree on finances parameters. The
committee will consist of all branch managers plus the CEO and
finance manager.
-A Capital Expenditure finances will be developed from the
accredited enterprise plan.
-Sales budget have to the first three months will be organized
after the earnings price range is completed. A grasp budget
including income projections will be accomplished from this
grasp price range value centre allocation.
-The role of Chief Financial Officer within the organisation who
I would approach to discuss and clarify the team
budget/financial plan are
Providing leadership, course and management of the finance and
accounting crew
Providing strategic tips to the CEO/president and individuals of
the executive management group
Managing the techniques for financial forecasting and budgets,
and overseeing the guidance of all monetary reporting
Advising on long-term business and financial planning
Establishing and developing relations with senior management
and external partners and stakeholders
Reviewing all formal finance, HR and IT associated procedures
15. Contingency Planning
A massive section of a manager’s feature is planning. Planning
includes getting ready contingency plans in the event the initial
plans need to be varied. Using the crew budget/ monetary graph
in the previous part, 5 an instance of a state of affairs or event
that would purpose a problem/ trouble in the course of the
implementation section of the team budget/ economic plan.
A contingency plan is a diagram devised for a result different
than in the common (expected) plan. It is regularly used for
danger administration for an extremely good threat that, even
though unlikely, would have catastrophic consequences.
Contingency plans are regularly devised via governments or
businesses. For example, think many employees of an
organisation are journeying collectively on an aircraft which
crashes, killing all aboard. The enterprise ought to be severely
strained or even ruined with the aid of such a loss. Accordingly,
many corporations have processes to comply with in the event
of such a disaster. The diagram may additionally encompass
standing policies to mitigate a disaster's practicable impact,
such as requiring employees to tour one after the other or
limiting the range of employees on any one aircraft.
A contingency sketch is a route of action designed to assist an
organization respond correctly to a vast future event or scenario
that can also or can also now not happen. A contingency graph
is every so often referred to as "Plan B," due to the fact it can
be also used as a choice for motion if anticipated effects fail to
materialize.
When planning our building project, setting up a budget is one
of the first steps in planning a profitable project. Setting a
layout for where to spend the money, and budgeting for all the
work takes both interest to detail and a complete scope of the
project. However, there is often instances unforeseen issues, or
16. items that come up the place extra work will be needed. This is
the place a contingency finances turns into critical. A
contingency finance is money set apart to cover unexpected
prices all through the building process. This money is on
reserve and no longer allocated to one region of the work, and
certainly “insurance” in opposition to other costs. As tasks
progress, once in a while mild can be shed on opportunities for
future prevention, or opportunities for improvements. For
example, whilst the assignment is happening, proprietors would
possibly suggest an improve to a better piece of gear that is in
perfect operating condition, however while walls are open, it is
an exact time to upgrade.
The predicted consequence if the contingency format used to be
applied then it helps us quickly take steps to tackle a trouble
that may want to end production, shut down website, cause us to
lose work and data or miss credit payments. A simple instance
of a contingency diagram is having a backup generator in the
event of an electricity failure. The purpose of a contingency
layout is to enable an organization to return to its each day
operations as rapidly as possible after an unforeseen event. The
contingency graph protects resources, minimizes client
inconvenience and identifies key staff, assigning particular
duties in the context of the recovery.
Financial Management Approaches
According to the new approach, the monetary administration is
involved with the answer of the primary areas relating to the
monetary operations of a firm, viz., investment, and financing
and dividend decisions. The cutting-edge monetary manager has
to take monetary selections in the most rational way. So,
finance functions, in accordance to this approach, covers
economic planning, rising of funds, allocation of funds,
economic manage etc. The new approach is an analytical way of
dealing with monetary issues of a firm.
17. Before implementation of a budget/financial plan it is important
that all individuals of the group who are impacted the diagram
are worried in its formation and implementation. The steps
taken to disseminate the records are conducting meetings,
emails, suggestion box, conducting presentation. The methods I
would use to speak and acquire agreements on the important
points of the format by way of conducting meetings, asking for
views of staffs, emails, cell phone conversation. Each manager
is accountable for accomplishing the revenue budgets agreed to
in the budget committee. Manger is accountable to approve, by
signing the necessary paperwork, all charges that fail within
their vicinity of responsibility. Expenditure ought to be inside
the budget guidelines for the man or woman departments.
The support methods or organisational process that members
are able to perform the financial management roles they are
allocated are described below.
1. Share the Organizational Vision with Each Member
If everyone is aware of the collective vision, which will lead to
prosperity and success of every team member, motivation and
enthusiasm emerge as the indivisible components of all
activities. Make positive that you continually listen the interest
of your workforce on the glory of accomplishing that powerful
vision. two
2. Communicate with Staff
You can’t study about ideas, attitude or worries of your crew
participants without constant communication. Use every
possibility to interact with them and you will find out thousands
of new approaches of organizing your activities extra
successfully.
3. Make People Feel Appreciated
One of the best desires of every man or woman is the need of
being appreciated. Very frequently appreciation is a larger
reward than money. Show your honest gratitude for the unique
contribution everyone makes to the organization successful.
4. Support New Ideas
18. Each group member will feel empowered by the probability to
no longer solely implement day to day tasks, but as well as
suggest new thoughts and make them a reality. Give human
beings a chance to take initiative and you will be amazed by
using their capability to create exquisite ideas. two
5. Give Challenging Tasks
People can’t develop if they are continuously doing what they
have usually done. Let them boost new competencies through
giving challenging tasks. At the same time make positive the
duties are reachable and in the frames of the person’s interests.
Conclusion:
Kathmandu furniture is a manufacturer based in Glenorchy,
Tasmania. The company produces furniture’s which are sold to
relaters in the Australian market. According to company
strategic plans, the company aims to achieve a net profit before
tax of $1000,000. According to company strategic plans, the
company aims to achieve a net profit before tax of $1000,000
and the major risk of this goal are poor sales due to economic
downturn and increase in expenses such as wages. To control
the unnecessary expense, and to eliminate loss of the company
we need to prepare of budget plan which will helps to give
proper direction to use the money in proper way to give benefit
to company. The budgeting and finance policy is very important
to the company and all the employees should support and
encourage to perform their duty allocated by the manager
properly and should follow their responsibility. Reporting
requirements should prepare properly and all the important
software applications such as windows, MYOB, Microsoft excel
should use for actual result for significant variances.
Contingency plan is money set aside to cover unexpected costs
during the construction process. This money is on reserve and
not allocated to one area of the work, and simply “insurance”
19. against other costs. As projects progress, sometimes light can be
shed on opportunities for future prevention, or opportunities for
improvements. The expected outcomes should implement.
Financial management approaches are the solution of the major
areas relating to the financial operations of a firm, viz.,
investment, and financing and dividend decisions. The modern
financial manager has to take financial decisions in the most
rational way. So, finance functions, according to this approach,
covers financial planning, rising of funds, allocation of funds,
financial control etc.
ASSESSMENT TASK 2-WRITTEN REPORT
Introduction:
Kathmandu furniture is a company produces furniture’s which
are sold to retailers in the Australian market. According to
company strategic plans and its objective is to earn net profit
before tax of $1000,000 but the market risk to get the goal are
poor sales due to economic downturn and the expenses increases
in wages. So, in order to control these risk and to get the aimed
target of $1000,000 some strategies, plans and solutions should
be implemented. The main strategies such as monitor and
control finances, Review variances, Review and evaluate
process should study very closely to support the company’s
goal.
Monitor and Control Finances
After the implementation of a budget/financial plan it is
essential that we monitor actual expenditure and control costs
across the financial activities of the work team.
Properly manage accounting. We can hire a good bookkeeper or
20. purchase DIY accounting software. It is crucial that you keep
accurate track of our income and costs.
Review your costs. Keep track of all of our small business
expenses. These can add up quickly, but reviewing them allows
you to fine-tune where our money goes.
Make financial projections. Having clear financial projections is
important. our main business plan will help us to anticipate and
address possible future obstacles.
Don’t get slack on invoicing.
- Send out invoices as soon as possible after providing
goods or services.
-Set payment terms of seven days to make sure that payments
are not forgotten or lost in the process.
- Always follow up on sent invoices. we can make this easy
by creating set templates for email or SMS follow-ups.
Reference invoice numbers and cross-reference these with
payments.
Keep a separate business bank account. Mixing business money
with our personal finances is a recipe for unexplained losses
and tax-headaches. Keeping our business’s money separate will
make gauging profitability easier and help us to keep proper
track of our expenses.
Keep track of personal loans to business. Keep accurate records
of what we loan to our business. When your business starts
making money, we can easily pay back the director’s loan first
before paying tax on the remaining profit.
Contingency planning is a process in which individuals within
an organization or from different organizations work together to
establish shared perspectives on potential crisis scenarios and
likely humanitarian needs, agree upon common objectives,
define how they would make decisions and carry them out in the
event of a crisis.
21. The plan is a record of what has been envisaged and agreed
upon at a particular moment. It is not an end in itself. The
understandings and relationships developed during the
contingency planning process are as important as the plan itself.
But a written plan is also essential for preserving the thinking
and decisions over time and over staff changes. The plan must
be regularly reviewed, and be updated as needed, by those who
would be responsible for taking action in the event of a crisis.
The contingency plan may be brief and general if the hazard
appears to be distant or is ill‐defined. It should be in greater
detail as a particular event or hazard becomes clear and
imminent. It should then be adapted into and elaborated on in an
operational plan when a crisis occurs and emergency action has
to be taken. An actual crisis will rarely correspond exactly to a
scenario adopted for contingency planning purposes.
A spreadsheet is an interactive computer application for
organization, analysis and storage of data in tabular form.
Spreadsheets developed as computerized analogy of paper
accounting worksheets. The program operates on data entered in
cells of a table.
Steps involved in using a spreadsheet as the tool to identify the
variance and overruns are described below:
For example, cell A3 below contains the SUM function which
calculates the sum of the range A1:A2.
Enter a Formula. ...
Tip: instead of typing A1 and A2, simply select cell A1 and cell
A2. ...
4. Excel automatically recalculates the value of cell A3. ...
To edit a formula, click in the formula bar and change the
formula.
6. Press Enter.
22. Review Variances
The contingency adjustments that I would need to implement in
order to maintain the financial objectives to assist in our
explanation are very important for the review variances. The
purpose of a contingency plan is to allow an organization to
return to its daily operations as quickly as possible after an
unforeseen event. The contingency plan protects resources,
minimizes customer inconvenience and identifies key staff,
assigning specific responsibilities in the context of the
recovery.
A contingency budget is money set aside to cover unexpected
costs during the construction process. This money is on reserve
and not allocated to one area of the work, and simply
“insurance” against other costs.
To develop a scenario where there have been 3 areas of account
variances (value less than originally planned) and 5 areas of
account overruns (value over the original plan) are listed below:
Serial No
Accounts(Particulars
Q1
Scenario
Forecasted
Actual
1
Telephone expenses
(2% sale)
15,000
23. 14,500
Because of off-season a business is in poor condition which is
leading to loss.
2
Sales
750,000
721,000
Hence, the 1st quarter was off-season, so the sales rate is low.
3
Marketing & Advertising
12,500
11,480
As per poor sales rate marketing and advertisement is also
down.
5 areas of account overruns (values over the original plan) are
discussed as below:
NO
Account
Q1
Scenario
Forecasted
Actual
1
Accounting Fees
24. 5,000
59,000
As one staff was in sick leave so, it was needed to give
overtime allowance to another staff.
2
Postage and printing
100
160
A courier service rate has been increased.
3
Office Supplies
1,250
1,600
Increase price in printer toner cartridges made the office
supplies cost increase
4
Legal fees
1,250
1,450
A customer claimed for return of goods as it was damaged.
5
Repair & maintenance
50,000
60,500
Because of off-season to pull up sales rate advertising should
increase to encourage people to buy.
25. The 8 accounts that are under and over the planned values are
listed below:
No
Accounts
Q1
Variance
Variance (%)
Forecasted
Cost
Actual
Cost
1
Commissions (2% sale)
15,000.00
14,500.00
-0.03
-3.33
2
Sales
750,000.00
721,000.00
-0.04
-3.87
3
Repairs and maintenance
12,500.00
11,480.00
-0.08
-8.16
4
Accounting fees
27. Contingency adjustment
Explanation
Accounting fees
5,000
5,500
During the first quarter, the Xero subscription fees are due, so a
contingency fund is a used.
Wages and salaries
125,000
130,000
As the peak point of sales rate will be high in summer season so
in Task 1, extra employees will be needed and should hire so,
Morel fund of 5,000 will be added in contingency plan.
Advertising
200,000
225,000
During the 1st quarter sales rate was poor because of the off-
season so now summer is coming and should focus in
advertising to encourage and to attract the customer so fund is
used for advertising.
Monitor process that undertaken to ensure the modification were
sufficient or if further adjustment modifications may be
necessary in order to achieve the financial objectives of the
original budget/financial plan are described below:
-Determine how every situation, such as hearth or flood, would
have an effect on these key areas; what actions would be taken;
and the resources wished for everyone. two
-Set desires for the return to critical operations and return to
full everyday operations. two
-Identify every required manner and record every step in the
process, what wants -to be done, along with the personnel and
other resources needed to entire the work.
-Develop plans for each purposeful region and the agency as a
28. complete and then check and refine the plans on a regular basis.
two
-Finally, enforce a communications and education design to
hold personnel informed of adjustments and remind them of
their roles and responsibilities.
The organisational procedures and protocols to report on the
team’s budget/financial plan variances, are all the employees
and the management should follow their responsibilities
according to their post and role. Everyone should follow the
rules, policies and protocols strictly.
Review and Evaluate Process
Financial Management Process
The financial management processes that are used to monitor
the effectiveness and reliability of financial activities of the
team are given below:
I) Collect and for analysis, data and information on the
effectiveness of financial management process while working as
a team.
II) Analyse data and regulate information of financial
management process while working as a team and emphasis the
document and suggest the information which helps to improve
the working process.
III) Monitor and implementing the improvements in the
financial activities of business or an organisation.
The list of documents that I would use to collect and collate
data and information
1) Income statements and sales record: We can find all the
records of income, profit, revenue, loss and sales record which
helps us to analyse the business is in track or not.
2) Balance sheet: Balance sheet helps us to identify any errors
during financial process and can do correction of it.
3) Bank reconciliation: Bank reconciliation helps to detect
errors and mistakes in account transactions of business.
4) Inventory record: Inventory record is useful to check the
inventories and if anything should be ordered then the goods are
29. ordered from suppliers. So, it helps to keep up to date of all
essential goods and materials.
Approach use to analyse data and information.
The approach I would like to use to analyse the data and
information gathered I.e. spreadsheet, tables, diagrams etc. In
order to identify financial process improvement opportunities.
Example-
Net Profit after Tax
Sales
Net Profit Ratio (%)
23,250
150000
15.5
Formula = (Net Profit after Tax/Sales) * 100
The areas of financial management process
The areas of the financial management process that may be
improved and your recommendations for process improvements
to ensure the effectiveness, efficiency and reliability of the
financial management process are discussed below:
Step-1: The meeting will conduct and organise by the CFO and
all the finance team should participate it that meeting.
Step-2: All changes in reports of finance will be discussing in
meeting and important steps will. be taken after all information
is shared to CFO and other team member then CFO will take
decision of what to change and what need to do which is
recorded by the responsible person for the role.
Step-3: After the meeting is finished then the things which is
decided or finalised by CFO will regulate through the
organisation and will run properly.
Organisational process required to implement and monitor the
agreed improvements
The organisational processes required to implement and monitor
the agreed improvements which is conducted by an Australian
30. government which is approved by third party and audit on
behalf of ATO.
Improved financial management
The improved financial management process is more aligned
with the financial objectives of the work team and organisation
by gathering and implementing all the information from own
employees. The feedbacks and suggestion plays vital role to
improve the technical and organizational aim.
Conclusion
From overall idea it is clearly understand that monitor and
control finance, Review Variance and Review and evaluate
process are very essential for the development and progress of
any company. All the failure elegance should do correction and
should record properly for the future reference which is very
important. It helps to give the overall view of company status
and current condition which helps to detect an error and loss.
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[online] Available at: https://smallbusiness.chron.com/team-
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Roberthalf.com.au. (2019). CFO job description and duties |
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https://www.roberthalf.com.au/our-services/finance-
accounting/cfo-jobs [Accessed 31 Jul. 2019].
31. En.m.wikipedia.org. (2019). Contingency plan. [online]
Available at: https://en.m.wikipedia.org/wiki/Contingency_plan
[Accessed 31 Jul. 2019]
Camp, A. (2019). 17 tips to manage your small business
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ASSMENT TASK 3: WRITTEN QUESTIONS AND ANSWER
1) What is budget?
ANS: Budget is a financial plan for any project and business. It
includes sales, revenue, expenses, assets, liabilities and cash
flow. Budget is very important to start and to run the business
in a planned manner.
2) What benefits can a budget provide?
ANS: The benefits a budget can provide are by helping us to
32. ignore spending on unnecessary fees, services. IT helps to make
easier to meet the aimed budget goal. It helps to track of our
spending and can control the unnecessary expenses, less money
stress, save money.
3)What is contingency plan?
ANS: A contingency plan is a subject of action planned to aid
an organization to response effectively to upcoming event that
may or may not happen. It can be used as alternative plan or we
can say plan B which can play a important role as a backup
plan.
4) When developing cost control measures what do business
need to ensure?
ANS: When developing cost control measures a business need
to ensure about following things:
I) Hire the right people: All steps should take very carefully as
it is important to control cost and minimize the un necessary
expenses. One of the important way to control cost is to hire the
right people for business who can take a good care and
responsibility.
II) Negotiate annual contracts: By negotiating annual contracts
it helps to minimize the cost of goods as well as for long term
control measure.
III) Build strong relationship with suppliers: Another way of
cost control is building strong relationship with suppliers. By
paying in time will make a good impression towards the
suppliers which can helps to negotiate the cost of goods.
IV) Using cloud computing as a cost control: Technology has
become advanced can be just productive as ever. By using cloud
computing many ways of cost controlling can be used which
helps to reduce cost overhead.
33. 5) How can business ensure a streamlined feedback system?
ANS: A business can ensure a streamlined feedback system by
following these tips:
I) KEEPING CUSTOMERS HAPPY: A business cannot be
successful without customers so they should be happy then
everyone can be happy and the business will also be successful.
By making customers happy with the services provided can
helps the business to get the successful place.
II) TRAINING: Should pinpoint our company’s training by
hiring or a company which offers customs training. By giving
training from a person who had trained thousands of employees
who performed leadership training.
III) STREAMLINING: By hiring an outside consulting company
it will be best way to discover the process and procedures which
are used for business and which ones we should shred. Should
consult with employees about the reason of slow down the
productivity and the process work well in the working
environment.
6) What does financial management deal with?
ANS: Financial management deal with the financial health of an
organization. They are engage in producing financial reports,
direct investment activities, and develop strategies and plans for
the long term financial objectives of their organization.
7)What are the key financial documents that should be created
early in the budget cycle?
Key financial documents that should be created early in the
budget cycle are
I) PREPARE YOUR BUDGET: The first step of budget process
is to design it. This process starts with the thought at the ground
level. According to the needed and its initiatives it should be
designed and should started.
II)GET YOUR BUDGET APPROVED: For a successful business
the political budgeting process is a bit shattered and it comes
under the principle. Budget should not depend in yes or no
34. content. However, it is the context of discussion.
III) EXECUTE YOUR BUDGET: After a budget is approved a
time comes to implement it. Likewise, the federal government,
business owners can’t be appropriate funds to control
unnecessary expenses. But we can adjust the business strategies
to control in expenses or minimize the targeted revenues.
IV) EVALUATE YOUR BUDGET REGULARLY: Budget plan
should reassess time to time for the best of business future.
Changes in revenue, control in cost and new information about
our customer base are the best examples of things that may
needed in budget requirement.
8) What are the key process to effectively manage approved
budgets include?
ANS: The key process to effectively manage approved budget
include are
-Analysis from past trend
-Actual sale order/targeted sale order
-Market research
-Economic condition
9) What does effective monitoring of budget performance
require?
ANS: Effective monitoring of budget performance require a
plan for our money, it ensures that we will always have enough
money for the things we need for the budgeting plan, and which
things are important to us. By following a budget plan will keep
us out of dept., loss and it helps us to overcome from debt.
10) What can the main ratio groups be classified as?
ANS: The main ratio groups can be classified as liquidity ratio
demonstrate a company’s ability to pay its current
responsibility. It can be related to the provided cash and other
assets to control accounts payable, short-term debt, and other
liabilities. The measurements can be found in one of the
35. company’s financial statements such as balance sheet, income
statements, cash flow statement, and statement of changes in
owner’s equity. Financial ratio plays vital role in business
owners and managers with valuable means with which its
progress can be determined and helps to increase in revenue and
control debts, loss of the company.
11) Who is usually in control of budget compliance?
ANS: Chief Financial Officer(CFO) is usually in control of
budget compliance.
12) Describe accounting principles?
ANS: Accounting principles are the rules and law that
companies must follow while reporting financial data.
Accounting principles are different in all countries. As
accounting principles are different across the world, investors
should be careful while comparing companies from different
countries. The problem of differing accounting principles
should focus while doing business and should concern the rules
and regulation of accounting principle where we are about to
deal with our business. The important principles of accounting
are:
-REVENUE PRINCIPLE: The principle defines a point in time
when bookkeepers may record a transaction as revenue on the
books. The revenue principle states that the revenue for the
36. business is earned and recorded at the point of sale.
-THE EXPENSES PRINCIPLES: The principle defines a point
in time at which the bookkeeper may log a transaction as an
expense in the books. The expense principle, or expenses
recognition principle, defines that an expense comes at the time
which the business accepts goods and services from another
entity.
-THE MATCHING PRINCIPLES: The matching principle
defines that we should match each item of revenue with an item
of expense. We should match the expense of taco ingredients
with the revenue earned from the sale of the taco.
-THE COST PRINCIPLE: The cost principle state that we
should use the historical cost of an item in the books, but
should not include the resell cost. For example, if our business
owns property such as vehicles that should be listed as
historical cost of the property, not the current fair market value
of the property.
-THE OBJECTIVE PRINCIPLE: The objective principle states
that we should use only factual, verifiable data in the books,
never a subjective measurement of values. The subjective data
are better that the verifiable data, the verifiable data should
always be used.
13) Identify and explain the relevant legislation and current
requirements of the Australian taxation office, including the
goods and services tax(GST)
ANS: The relevant legislation and current requirements f the
Australian taxation office, including goods and services are to
make the 2019 GST regulations more consistent with modern
requirements for drafting legislation, some have been
renumbered along with their associated tables and item
numbers. These changes don’t affect the meaning or operation
of the regulations. GST rate is 10%.
37. 14) Explain they key requirements for financial record keeping
and auditing?
Ans: The key requirements for financial record keeping and
auditing are explained below:
To keep the records for a minimum of five years
-Accurate and accessible accounting records that explain the
transactions and financial position of our SMSF.
-An annual operating statement and an annual statement of our
SMSF’S financial position.
-Copies required to lodge of all SMSF annual return lodged
-Copies of transfer balance account reports lodged
-Copied of any other statements we are required to lodge with
us or provide to other super funds.
We need to keep the following records for a minimum of 10
years:
-Minutes of trustee meetings and decisions.
-Records of all charges of trustee
-Trustee declarations recognition the obligations and
responsibilities for any trustee, or director of a corporate
trustee, appointed after 30 June 2007
-Member’s written consent to be appointed as trustees
-Copies of all reports given to members
-Documented decisions about storage of collectables and
personal use assets.
38. 15) Describe the principles and techniques involved in
managing:
I)Budgeting
II)Cash flows
III)Electronic spreadsheets
IV)GST
V)Ledgers and financial statements
VI)Profit and loss statements
Ans: The principles and techniques involved in managing
Budgeting
1) Responsible fiscal management. Minnesota’s financial
standing (including the state’s bond ratings) depends on
adequate reserve.
2)Clear lines of accountability.
3) Flexibility to respond to short-term challenges and plan for a
long-term vision.
4) Good financial information.
5) Stability in the decision-making process.
Cash flows
1) Manage a cash flow budget:
In order to manage our cash, it’s important to have a really clear
handle on how much we’ve got. Start by setting up a cash flow
statement and make sure we put the time into keeping it up to
date. We can use our statements as the foundation for a cash
flow forecast that will allow we to look six to 12 months into
the future and predict our cash position the.
2) Manage a cash reserve:
If we operate our business with a cash balance of zero, then we
are going to find it doesn’t take much to cause a crisis. A much
better plan is to build a buffer into our bank balance that will
prepare us in case of unexpected challenges.
3) Be realistic with our sale volume estimates:
39. t’s important to be optimistic in business but not when you are
predicting your revenue. When you gather your numbers
together to create your cash flow forecast, make sure you are
realistic with your sales figures. Being realistic is important
because false optimism could hide a cash flow problem that’s
just around the corner. It’s better to err on the side of caution
and be prepared for any challenges that lie ahead.
4) Focus on our invoices:
Focus on our customers don’t pay their bills on time it can
really hurt your business, so it’s important to keep a close
watch on our invoice processes. Create a clear framework
around the issuing and management of invoices so both us and
our customers know what to expect.
5) Keep a tight rein on our spending especially through start up:
Every dollar you spend comes directly from your bottom line,
so it’s important to hold onto your cash reserves and avoid
adding cost into your business. The easiest way to manage
spending is to create a detailed budget and stick to it.
Electronic spreadsheets:
1) Determine what role spreadsheets play in your business, and
plan your spreadsheet standards and processes accordingly.
It is fundamental to consider what part spreadsheets play and
how they are used. You need to consider how to create,
implement, and communicate a plan of best practice. If you only
use spreadsheets sparingly, then the Twenty Principles
themselves are enough of a standard. But in a spreadsheet-heavy
environment like a financial modelling organization, then a
more formal modelling standard might be more appropriate.
2. Adopt a standard for your organisation and stick to it.
This is one of the fundamental ideas that drives the Twenty
Principles. Good standardisation is useless if it isn’t considered
in the context of your organisation and what makes sense for
what you’re trying to achieve with spreadsheets. The standard
should include, among other things, consistent conventions on
40. use of cell formatting.
3) Ensure that everyone involved in the creation or use of
spreadsheets has an appropriate level of knowledge and
competence.
Spreadsheets, no matter how well designed, are only as good as
their users. For anyone designing, developing or maintaining (as
distinct from just using) a spreadsheet, this will include:
awareness of the range of functions available, clear
understanding of such basic concepts as relative and absolute
cell references, and an appreciation of the importance of
carefully checking the results of functions.
IV) GST
Destination Principle' states that the supply of goods and
services would be taxed at the point of consumption. This
means that GST replaces source based tax system with
destination based tax regime.
V) Ledgers and financial statements
The general ledger documents all of the organization’s
transactions over the course of a year for all accounts. Every
time a check is written, the transaction reduces cash and
increases an expense account. Every time a check is deposited
and recorded, cash is increased and revenue is increased.
-Statement of financial position accounts
Asses accounts
Liability accounts
Net asset accounts
-statement of activities accounts
Revenues and gains
Expenses and losses
Vi) Profit and loss statements
The purpose of the income statement is to provide the financial
41. earnings performance of the entity over a specific period of
time. It is also referred to as a profit and loss statement or
earnings statement.
The format of the income statement components allows for
dissecting the revenues, expenses, operating income, and profits
of an entity. The income statement is one of three critical
company financial statements for investor analysis.
REFERENCE
Shiffrin, Steven M. (2003). Economics: Principles in Action.
Upper Saddle River, New Jersey 07458: Pearson Prentice Hall.
p. 502. ISBN 0-13-063085-3.
AUGUST 27, 2018 BY ASHLEY PATRICK
MARGARET ROUSE (16 APRIL 2013)
Robert (2019) Half International Inc. An Equal Opportunity
Employer M/F/Disability/Veterans.
(https://www.roberthalf.com/blog/management-tips/4-cost-
control-measures-you-cant-live-without)
Cirrus Insight on Sep 22, 2015
(https://www.cirrusinsight.com/blog/10-ways-to-streamline-
your-businesss-best-practices)
College Grad LLC (2019)
(https://collegegrad.com/careers/financial-managers)
42. Steve Lander; Reviewed by LD Withier, MBA; Updated January
25, 2019
(https://smallbusiness.chron.com/4-phases-budget-cycle-
71723.html)
Muhammad Tullah Rashid ACCA, UAECA, Senior Accountant,
Kampar International General Trading LLC / Dubai Crystal
Mineral Water & Ref Co (2016)
(https://specialties.bayt.com/en/specialties/q/258083/what-are-
the-most-important-factors-to-consider-in-budget-development/)
Clark, Scott. "Financial Ratios Hold the Key to Smart
Business." Birmingham Business Journal. 11 February 2000.
(https://www.inc.com/encyclopedia/financial-ratios.html)
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53. ...............................................................................................
.............................................
29
Advantages of a Sole Trader Business
...............................................................................................
........................ 29
Disadvantages of a Sole Trader
Business..................................................................................
................................. 30
Taxation for the Sole Trader
...............................................................................................
.......................................
30 Corporate Entities
...............................................................................................
......................................... 30
Figure 3: Main types of Corporations
...............................................................................................
............30
Companies Limited
...............................................................................................
.....................................................
31
Figure 4: 2 Types of Limited Companies
...............................................................................................
........
31
A Company limited by Shares
............................................................................... ................
.....................................
32
A Company limited by Guarantee
54. ...............................................................................................
.............................. 32
No Liability Companies
...............................................................................................
............................................... 32
Unlimited Companies
...............................................................................................
................................................. 32
Holding Companies and
Subsidiaries.............................................................................
............................................ 33
The Constitution
...............................................................................................
.........................................................
33
Partnership vs. Company
...............................................................................................
..............................
33
Trusts
...............................................................................................
............................................................
33
Family Trusts
...............................................................................................
.................................................
35
Document Name: BSBFIM501A CAC Learner Guide - Manage
budgets and financial Created Date: 4 Jan. 13
plans_Ver2.1_NH.doc_CAC_Ver2.1_no activities
56. .................................................. 38
Debtor Ageing Ratio
...............................................................................................
................................................... 38
Creditor Ageing Ratio
...............................................................................................
................................................. 39
Debt Ratio
...............................................................................................
.................................................................. 39
Debt to Income Ratio
...............................................................................................
................................................. 39
Interest Cover Ratio
...............................................................................................
................................................... 40
Asset Turnover Ratio
...............................................................................................
..................................................
40 Interpreting a Statement of Assets and Liabilities
....................................................................................... 40
Figure 5: Statement of Assets and Liabilities Example
.................................................................................
41
1.2 CLARIFY BUDGET/ FINANCIAL PLANS WITH
RELEVANT PERSONNEL WITHIN THE ORGANISATION TO
ENSURE THAT
DOCUMENTED OUTCOMES ARE ACHIEVABLE,
ACCURATE AND COMPREHENSIBLE.
................................................................
42 Communicating Budgets and Financial Plans
............................................................................................
42
57. Monitoring and Controlling Activities Against Plans
...................................................................................
43
Variance report format
...............................................................................................
.................................
45
Figure 6: Variance
...............................................................................................
.........................................
45
Format of a
report......................................................................................
..................................................
45
Sales variance
.............................................................................................. .
...............................................
45
Figure 7: Sales variance example
...............................................................................................
.................
46
Production cost variance
...............................................................................................
...............................
46
Production units variance
...............................................................................................
.............................
46
58. Figure 8: Production Units Variance
...............................................................................................
.............
46
Direct material units variance
...............................................................................................
.......................
47
Figure 9: Direct Materials Units Variance example
..................................................................................... 47
Direct material cost variance
...............................................................................................
........................
47
Figure 10: Direct material cost example.
...............................................................................................
......
47
Production cost variance
...............................................................................................
...............................
47
Figure 11: Production cost variance example
..............................................................................................
48
Document Name: BSBFIM501 CAC Learner Guide - Manage
budgets and financial Created Date: 4 Jan. 13
64. 2.1 DISSEMINATE RELEVANT DETAILS OF THE AGREED
BUDGET/ FINANCIAL PLANS TO TEAM MEMBERS.
..........................
75
Training
Activities................................................................................
.........................................................
75
Informal meetings
...............................................................................................
...................................................... 75
Formal, structured competency standards/training
...............................................................................................
.. 76
Small group discussions
...............................................................................................
..............................................
76
Tele- and videoconferencing
...............................................................................................
...................................... 76
E-learning
...............................................................................................
................................................................... 77
Need For Definition of Data and Terms
...............................................................................................
........
77
2.2 PROVIDE SUPPORT TO ENSURE THAT TEAM
MEMBERS CAN COMPETENTLY PERFORM REQUIRED
ROLES ASSOCIATED
65. WITH THE MANAGEMENT OF FINANCES.
...............................................................................................
......................
78
Testing the Communication Outcomes
...............................................................................................
.........
78
2.3 DETERMINE AND ACCESS RESOURCES AND SYSTEMS
TO MANAGE FINANCIAL MANAGEMENT PROCESSES
WITHIN THE
WORK TEAM
.............................................................................................. .
..........................................................
80 Delegations and Budget Responsibilities
...............................................................................................
...... 80
Figure 18: Delegation of responsibilities
...............................................................................................
.......
81
3. MONITOR AND CONTROL FINANCES.
...............................................................................................
.......... 82 3.1 IMPLEMENT PROCESSES TO
MONITOR ACTUAL EXPENDITURE AND TO CONTROL
COSTS ACROSS THE WORK TEAM ......... 82
3.2 MONITOR EXPENDITURE AND COSTS ON AN AGREED
CYCLICAL BASIS TO IDENTIFY COST VARIATIONS AND
68. ................................................
88
Risk evaluation
...............................................................................................
..............................................
88 Figure 20: Likelihood and consequences of risk
...........................................................................................89
Figure 21: The process of analysing risk
...............................................................................................
........
89
Monitor and review
...............................................................................................
.......................................
90
Communicate and consult
...............................................................................................
............................
91
Contingency plan
...............................................................................................
..........................................
91
Proper records
............................................................................... ................
...............................................
91
3.4 REPORT ON BUDGET AND EXPENDITURE IN
ACCORDANCE WITH ORGANISATIONAL PROTOCOLS
................................ 92
71. ......
100
Compliance with legal obligations
...............................................................................................
..............
100
Monitoring of Performance
...............................................................................................
........................
101
Example
...............................................................................................
.......................................................
101
Variances................................................................................
....................................................................
101
Variances and their Causes
...............................................................................................
.........................
102
Sales variances and their causes
...............................................................................................
.................
103
Direct material cost variances and their causes
........................................................................................
105
Figure 26: Diagrammatic representation of direct material
variances ......................................................
106
72. Example
...............................................................................................
.......................................................
106
Direct labour cost variances and their causes
............................................................................................
108
Figure 27: Diagrammatic representation of direct labour
variances .........................................................
109
Example
...............................................................................................
.......................................................
109
Overhead variances and their causes
...............................................................................................
.........
111
4.2 ANALYSE DATA AND INFORMATION ON THE
EFFECTIVENESS OF FINANCIAL MANAGEMENT
PROCESSES WITHIN THE
WORK TEAM AND IDENTIFY, DOCUMENT AND
RECOMMEND ANY IMPROVEMENTS TO EXISTING
PROCESSES. ...........................
114
Restructuring the Budgets
...............................................................................................
..........................
114
Flexible budgets
78. BSBFIM501A - Manage budgets and
financial plans
Description:
This unit describes the performance outcomes, skills and
knowledge required
to undertake financial management within a work team in an
organisation. This
includes planning and implementing financial management
approaches,
supporting team members whose role involves aspects of
financial operations,
monitoring and controlling finances, and reviewing and
evaluating
effectiveness of financial management processes in line with the
financial
objectives of the work team and the organisation. No licensing,
legislative,
regulatory or certification requirements apply to this unit at the
time of
endorsement
Employability Skills:
This unit contains employability skills.
Application of Unit:
This unit addresses the requirement for managers to ensure that
financial
resources are used effectively. This is done by ensuring access
79. to budget/s
and ongoing monitoring expenditure against the budget/s.
The unit applies to managers working in small and large
business environments
and not for profit organisations.
Introduction
As a worker, a trainee or a future worker you want to enjoy
your work and
become known as a valuable team member. This unit of
competency will
help you acquire the knowledge and skills to work effectively as
an individual
and in groups. It will give you the basis to contribute to the
goals of the
organization which employs you.
It is essential that you begin your training by becoming familiar
with the industry
standards to which organizations must conform.
This unit of competency introduces you to some of the key
issues and
responsibilities of workers and organizations in this area. The
unit also
provides you with opportunities to develop the competencies
necessary for
employees to operate as team members.
This Learning Guide covers:
• Plan financial management approaches.
• Implement financial management approaches.
81. To obtain additional support you may:
• Search for other resources in the Learning Resource Centres of
your
learning institution. You may find books, journals, videos and
other
materials which provide extra information for topics in this
unit.
• Search in your local library. Most libraries keep information
about
government departments and other organizations, services and
programs.
• Contact information services such as Infolink, Equal
Opportunity
Commission, and Commissioner of Workplace Agreements.
Union
organizations, and public relations and information services
provided by
various government departments. Many of these services are
listed in the
telephone directory.
• Contact your local shire or council office. Many councils have
a community
development or welfare officer as well as an information and
referral
service.
• Contact the relevant facilitator by telephone, mail or
facsimile.
Facilitation
Your training organization will provide you with a flexible
82. learning facilitator.
Your facilitator will play an active role in supporting your
learning, will make
regular contact with you and if you have face to face access,
should arrange
to see you at least once. After you have enrolled your
facilitator will contact
you by telephone or letter as soon as possible to let you know:
• How and when to make contact
• What you need to do to complete this unit of study What
support will
be provided.
Here are some of the things your facilitator can do to make your
study easier.
• Give you a clear visual timetable of events for the semester or
term in which
you are enrolled, including any deadlines for assessments.
• Check that you know how to access library facilities and
services.
• Conduct small ‘interest groups’ for some of the topics.
• Use ‘action sheets’ and website updates to remind you about
tasks you
need to complete.
• Set up a ‘chat line”. If you have access to telephone
conferencing or video
conferencing, your facilitator can use these for specific topics
or discussion
84. tackle it…..and your family and friends want you to spend time
with
them……and a movie you want to watch is on
television….and….
Sometimes being a candidate can be hard.
Here are some ideas to help you through the hard times. To
study effectively,
you need space, resources and time.
Space
Try to set up a place at home or at work where:
• You can keep your study materials
• You can be reasonably quiet and free from interruptions, and
• You can be reasonably comfortable, with good lighting,
seating and a flat
surface for writing.
If it is impossible for you to set up a study space, perhaps you
could use your
local library. You will not be able to store your study materials
there, but you
will have quiet, a desk and chair, and easy access to the other
facilities.
Study Resources
The most basic resources you will need are:
• a chair
• a desk or table
85. • a reading lamp or good light
• a folder or file to keep your notes and study materials together
• materials to record information (pen and paper or notebooks,
or a
computer and printer)
• reference materials, including a dictionary
Do not forget that other people can be valuable study resources.
Your fellow
workers, work supervisor, other candidates, your flexible
learning facilitator,
your local librarian, and workers in this area can also help you.
Time
It is important to plan your study time. Work out a time that
suits you and plan
around it. Most people find that studying in short, concentrated
blocks of
time (an hour or two) at regular intervals (daily, every second
day, once a
week) is more effective than trying to cram a lot of learning
into a whole day.
You need time to “digest” the information in one section before
you move on
to the next, and everyone needs regular breaks from study to
avoid overload.
Be realistic in allocating time for study. Look at what is
required for the unit
and look at your other commitments.
87. unfamiliar information.
Do not worry about spelling or neatness, as long as you can read
your own
notes. Keep your notes with the rest of your study materials
and add to them
as you go. Use pictures and diagrams if this helps.
Underline key words when you are reading the materials in this
learning
guide. (Do not underline things in other people’s books). This
also helps
you to remember important points.
Talk to other people (fellow workers, fellow candidates, friends,
family, your
facilitator) about what you are learning. As well as helping you
to clarify and
understand new ideas, talking also gives you a chance to find
out extra
information and to get fresh ideas and different points of view.
Using this learning guide:
A learning guide is just that, a guide to help you learn. A
learning guide is not
a text book. Your learning guide will
• describe the skills you need to demonstrate to achieve
competency for
this unit
• provide information and knowledge to help you develop your
skills
• direct you to other sources of additional knowledge and
information about
89. Intended Outcomes or Objectives
Statements of intended outcomes or objectives are descriptions
of
the work that will be done.
Assessment
Strategies with which information will be collected in order to
validate
each intended outcome or objective.
How to get the most out of your learning guide
1. Read through the information in the learning guide
carefully. Make sure you understand the material.
Some sections are quite long and cover complex ideas and
information. If you come across anything you do not
understand:
• talk to your facilitator
• research the area using the books and materials listed under
Resources
• discuss the issue with other people (your workplace
supervisor, fellow workers, fellow candidates)
• try to relate the information presented in this learning guide to
your own
experience and to what you already know.
90. Ask yourself questions as you go: For example “Have I seen
this happening
anywhere?” “Could this apply to me?” “What if….?” This will
help you to
make sense of new material and to build on your existing
knowledge.
2. Talk to people about your study.
Talking is a great way to reinforce what you are learning.
3. Make notes.
4. Additional research, reading and note taking.
If you are using the additional references and resources
suggested in the
learning guide to take your knowledge a step further, there are a
few simple
things to keep in mind to make this kind of research easier.
Always make a note of the author’s name, the title of the book
or article, the
edition, when it was published, where it was published, and the
name of the
publisher. If you are taking notes about specific ideas or
information, you will
need to put the page number as well. This is called the
reference
information. You will need this for some assessment tasks and
it will help
you to find the book again if needed.