Stanford College Australia

RTO Number: 40514 CRICOS Number: 03752B

Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

Stanford College Australia

RTO No. 40514 CRICOS No. 03752B

FNS50222 Diploma
of Accounting

FNSACC523 Manage budgets and

forecasts

Student Assessment Tasks

Student Name Hing Ka Lau

Student ID S1992

Date 22/02/25

FNSACC523 Manage budgets and forecasts V1.0 | 1

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

CONTENTS
Introduction 4
Assessment Task 1: Knowledge questions 5
Assessment Task 1: Checklist 19
Assessment Task 2: Project Portfolio 21
Assessment Task 2: Checklist 25
Final results record 26

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

INTRODUCTION
Welcome to the Student Assessment Tasks for FNSACC523 Manage budgets and forecasts.
These tasks have been designed to help you demonstrate the skills and knowledge that you have
learnt during your course.
Please ensure that you read the instructions provided with these tasks carefully. You should also
follow the advice provided in the Accounting and Finance Works Student User Guide. The Student
User Guide provides important information for you relating to completing assessment successfully.

ASSESSMENT FOR THIS UNIT

For you to be assessed as competent, you must successfully complete these assessment tasks:
 Assessment Task 1: Knowledge Questions – You must answer all questions correctly.
 Assessment Task 2: Project Portfolio – You must work through a range of activities and
complete a Project Portfolio.

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

ASSESSMENT TASK 1:
KNOWLEDGE QUESTIONS
INFORMATION FOR STUDENTS
Knowledge questions are designed to help you demonstrate the knowledge which you have
acquired during the learning phase of this unit. Ensure that you:
 review the advice to students regarding answering knowledge questions in the Accounting
and Finance Works Student User Guide
 comply with the due date for assessment which your assessor will provide
 adhere with your RTO’s submission guidelines
 answer all questions completely and correctly
 submit work which is original and, where necessary, properly referenced
 submit a completed cover sheet with your work
 avoid sharing your answers with other students.

i ASSESSMENT INFORMATION

Information about how you should complete this assessment can be found in Appendix A of the
Accounting and Finance Works Student User Guide. Refer to the appendix for information on:
 where this task should be completed
 the maximum time allowed for completing this assessment task
 whether or not this task is open-book.
Note: You must complete and submit an assessment cover sheet with your work. A template is
provided in Appendix B of the Student User Guide. However, if your RTO has provided you with
an assessment cover sheet, please ensure that you use that.

FNSACC523 Manage budgets and forecasts V1.0 | 4

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

QUESTIONS
Provide answers to all of the questions below.

1. Complete the table about the purpose and objectives of budgets and forecasts.

Purpose Objectives (list three)

a) Budgets Budgets 1. Allocate resources

effectively and efficiently.
2. Control operating
expenses.
3. Achieve sustainable
growth.

b) Forecasts Forecasts 1. Predict future sales and

expenses.
2. Assist in decision-
making processes.
3. Identify potential risks
and opportunities.

FNSACC523 Manage budgets and forecasts V1.0 | 5

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

FNSACC523 Manage budgets and forecasts V1.0 | 6

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

2. Explain the relevance of milestones and key performance indicators to budgets and forecasts.
Milestones and key performance indicators (KPIs) play a crucial role in budgets and forecasts by
providing measurable targets and benchmarks for assessing performance and progress. Here's
how they are relevant:

Tracking Performance: Milestones and KPIs allow businesses to monitor their progress against
predetermined goals and targets. In budgets, they help to assess whether actual performance
aligns with the planned financial outcomes. For example, comparing actual sales figures to
forecasted sales can indicate if the business is meeting its revenue targets.

Identifying Variances: KPIs enable businesses to identify variances between budgeted and actual
performance. In both budgets and forecasts, these variances help to pinpoint areas where
deviations occur, whether positive or negative. By analyzing these variances, businesses can
adjust their strategies, reallocate resources, or implement corrective actions to stay on track.

Decision Making: Milestones and KPIs provide valuable insights for decision-making processes. In
budgets, they assist in making informed decisions about resource allocation, investment
prioritization, and expense management. In forecasts, they help in assessing the potential impacts
of different scenarios and making adjustments to strategic plans accordingly.

Improving Accountability: By setting clear milestones and KPIs, businesses enhance accountability
at various levels within the organization. Managers and teams are held accountable for achieving
their targets, which fosters a culture of responsibility and performance-driven behavior.

Continuous Improvement: Regularly monitoring milestones and KPIs facilitates a process of

continuous improvement. Businesses can learn from past performance, identify areas for
enhancement, and refine their budgeting and forecasting processes over time to better align with
organizational objectives and market conditions.

3. Complete the following table relating to ethical requirements and budgets and forecasts.

a) A budget and forecast The relevance of milestones and key

does not include the performance indicators (KPIs) to budgets and
assumptions that are forecasts lies in their ability to provide a

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

made. Outline the means for monitoring and evaluating the

ethical requirement financial health and performance of an
that is not met. organization. Here's how they are relevant:

1. Monitoring Progress: Milestones and

KPIs serve as benchmarks for tracking
the progress of a budget or forecast
over time. They allow managers to
compare actual performance against
planned targets at regular intervals,
typically on a monthly or quarterly
basis.
2. Performance Evaluation: KPIs
provide measurable indicators of
performance, such as gross and net
profit margins, revenue growth,
expense ratios, etc. These metrics help
assess the effectiveness of financial
strategies and operational activities
outlined in the budget or forecast.
3. Identifying Variances: By comparing
actual results to budgeted or forecasted
figures, organizations can identify
variances and deviations from expected
outcomes. This enables management to
investigate the root causes of
discrepancies and take corrective
actions if necessary.
4. Decision-Making: Milestones and KPIs
provide valuable insights for decision-
making. They help managers identify
areas of strength and weakness,
allocate resources more effectively, and
adjust strategies to align with changing
market conditions or business
objectives.

b) A budget and The ethical requirement that is not met in this

forecast has been scenario is the principle of accuracy and
developed to meet truthfulness in financial reporting. By
an expectation of developing a budget and forecast that project
increased sales increased sales despite previous years' data
although previous showing declining sales, the organization fails
to provide a realistic and honest

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

years’ sales data representation of future financial

show declining sales. expectations. This failure violates the
Outline the ethical principle of integrity, which requires financial
requirement that is information to be reliable, accurate, and free
not met. from bias or manipulation.

Here's how this situation violates ethical

standards:

1. Misleading Stakeholders: By
projecting increased sales without
sufficient justification based on
historical data, the organization may
mislead stakeholders, including
investors, creditors, and employees,
about the company's financial health
and prospects. This can erode trust and
confidence in the organization's
leadership and financial management.
2. Risk of Financial Mismanagement:
Relying on overly optimistic sales
projections can lead to poor financial
decision-making, such as
overinvestment in inventory, expansion,
or marketing initiatives. If actual sales
fail to meet expectations, the
organization may encounter cash flow
problems, liquidity issues, or even
financial distress.
3. Lack of Transparency: Failing to
disclose the discrepancies between past
performance and projected sales
undermines transparency and
accountability in financial reporting.
Stakeholders have the right to access
accurate and complete information to
assess the organization's performance
and make informed decisions.
4. Potential Legal and Regulatory
Consequences: Misrepresenting
financial forecasts could expose the
organization to legal and regulatory
risks, including allegations of securities
fraud or violations of accounting

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

standards. Regulatory bodies such as

the Securities and Exchange
Commission (SEC) may investigate
cases of false or misleading financial
reporting.

4. List and outline six types of data/information required for budgeting and forecasting and the
sources of each type of data/information.

1. Sales Data:
 Sources: Sales records, CRM systems, Point of Sale (POS)
systems, historical sales data, market research reports,
industry benchmarks.

2. Expense Data:
 Sources: Accounting records, expense reports, invoices,
receipts, payroll records, vendor contracts, industry
benchmarks.

3. Economic Indicators:
 Sources: Government reports (e.g., GDP growth, inflation
rates, unemployment rates), financial news outlets,
economic research firms, central bank reports.

FNSACC523 Manage budgets and forecasts V1.0 | 10

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

4. Market Trends:
 Sources: Market research reports, industry publications,
competitor analysis, customer feedback, social media trends,
surveys and focus groups.

5. Operational Metrics:
 Sources: Production reports, inventory levels, capacity
utilization rates, efficiency metrics (e.g., labor productivity,
machine downtime), quality control data.

6. Capital Expenditure Plans:

 Sources: Project proposals, capital budget requests,
investment analyses, vendor quotes, depreciation schedules,
asset registers.

5. Complete the table below by outlining each of the budget forecasting techniques.

a) Historical trend analysis Examines past data to identify patterns and

trends, allowing for forecasts based on
historical performance.

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

b) Incremental budgeting Adjusts previous budgets by a certain

percentage or amount, typically based on
inflation rates or historical spending patterns.

c) Moving averages Smooths out fluctuations in data by

calculating averages of a specific number of
consecutive periods, aiding in trend
identification.

d) Zero-based budgeting Requires all expenses to be justified from

scratch for each budgeting period, with no
consideration of past budgets.

e) Activity-based budgeting Allocates resources based on the expected

workload and activities required to achieve
specific objectives or outputs.

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

f) Project-based budgeting Focuses on budgeting for individual projects

or initiatives, considering their unique
requirements and timelines.

g) Top-down and bottom-up Top-down forecasting starts with high-level

forecasting estimates and drills down to detailed
forecasts, while bottom-up forecasting
aggregates individual forecasts to create a
comprehensive estimate.

h) Rolling forecasts Updates forecasts regularly (e.g., monthly or

quarterly) by adding new periods and
dropping the oldest, maintaining a continuous
forecast horizon.

i) Scenario analysis Considers multiple scenarios or possible

future outcomes, allowing for better risk
assessment and decision-making under
uncertainty.

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

j) Regression analysis Uses statistical techniques to identify

relationships between variables, enabling the
prediction of future values based on historical
data.

k) Time series analysis Analyzes time-ordered data to detect

patterns, trends, and seasonality, facilitating
forecasts based on historical time series data.

6. List and outline four organisational policies and procedures relevant to budgeting and
forecasting.

1. Budget Approval Process:

Outline: This policy establishes the process for approving budgets within the organization. It
defines the roles and responsibilities of stakeholders involved in the budgeting process,
such as department heads, finance teams, and senior management.
Procedure: The procedure typically involves submitting budget proposals, reviewing them
against strategic objectives and financial constraints, seeking approval from appropriate
authorities, and communicating approved budgets to relevant stakeholders.

2. Data Governance Policy:

Outline: This policy outlines the standards and procedures for managing and maintaining
data integrity, accuracy, and confidentiality, particularly relevant to the data used in
budgeting and forecasting processes.
Procedure: The procedure includes guidelines for data collection, validation, storage, and
access control. It may involve regular audits to ensure compliance with data governance
standards and address any data quality issues.

FNSACC523 Manage budgets and forecasts V1.0 | 14

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

3. Variance Analysis Policy:

Outline: This policy defines the process for analyzing variances between budgeted and
actual performance, aiming to identify deviations and take corrective actions promptly.
Procedure: The procedure typically involves comparing actual financial results against
budgeted figures, investigating the root causes of variances, documenting findings, and
developing action plans to address unfavorable variances or capitalize on favorable ones.

4. Forecasting Accuracy Policy:

Outline: This policy sets expectations for the accuracy and reliability of forecasts generated
by the organization. It emphasizes the importance of using robust forecasting methods and
assumptions to minimize forecast errors.
Procedure: The procedure may involve regularly monitoring forecast accuracy metrics,
conducting post-mortem analyses to evaluate forecast performance, and implementing
continuous improvement initiatives to enhance forecasting capabilities over time.

7. Part of an organisation’s policies and procedures will relate to the types of reports that need to
be created. Provide an outline of each report below.

Report Description

a) Regular budget Regular budget reports provide updates on the

reports organization's financial performance against the budget
throughout the fiscal period. These reports typically
compare actual results to budgeted figures, highlighting
variances and trends.

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

Report Description

b) Variance analysis A variance analysis report examines the differences

report between budgeted and actual performance to identify
areas of over-performance or under-performance. It
aims to explain the reasons behind significant variances
and assess their impact on the organization's financial
health.

c) Forecast updates Forecast updates provide revised projections of future

financial performance based on the latest information
and trends. These updates help stakeholders
understand changes in the organization's expected
financial outcomes and adjust their plans accordingly.

d) Year-end budget The year-end budget report summarizes the

report organization's financial performance for the entire fiscal
year, comparing actual results to the budget and
assessing overall performance against strategic
objectives.

e) Compliance with This report assesses the organization's compliance with

regulatory relevant regulatory requirements, such as financial
requirements reporting standards, tax laws, and industry-specific
regulations. It ensures that the organization's financial
activities are conducted in accordance with legal and
ethical standards.

8. Explain the concept of accrual accounting and outline four principles.

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

Concept: Accrual accounting is an accounting method that records revenues and

expenses when they are earned or incurred, regardless of when cash
transactions occur. In other words, it recognizes economic events as they
happen, rather than when cash actually changes hands. Accrual accounting
provides a more accurate picture of a company's financial position and
performance by matching revenues with the expenses incurred to generate
them, even if the actual cash inflows or outflows happen at a later time.

Principles:

1. Revenue Recognition Principle:

This principle dictates that revenue should be recognized in the accounting records when it
is earned, regardless of when cash is received. Revenue is considered earned when goods
are delivered or services are rendered to customers, and the amount can be reasonably
estimated. This ensures that revenues are matched with the expenses incurred to generate
them, providing a more accurate depiction of a company's profitability.

2. Expense Recognition Principle (Matching Principle):

The expense recognition principle states that expenses should be recognized in the period
in which they are incurred to generate revenue, rather than when the cash payments are
made. This principle ensures that expenses are matched with the revenues they help
generate, resulting in a more accurate measurement of profitability for a given accounting
period.

3. Consistency Principle:

The consistency principle requires that once a company adopts an accounting method or
principle, it should consistently apply that method or principle in similar situations across
different accounting periods. Consistency in accounting practices allows for comparability
between financial statements over time, enabling stakeholders to assess trends and make
informed decisions.

4. Full Disclosure Principle:

The full disclosure principle requires that a company's financial statements and related
disclosures provide all material information necessary for users to understand the financial
position and performance of the business. This principle ensures transparency and helps
prevent the omission of relevant information that could potentially mislead users of the

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

financial statements.

9. Outline the concept of double-entry bookkeeping and three key principles.

Concept: Double-entry bookkeeping is a method of recording financial

transactions in which every transaction affects at least two accounts: a debit
entry and a credit entry. This system ensures that the accounting equation
(Assets = Liabilities + Equity) remains balanced after each transaction,
providing an accurate representation of a company's financial position.

Principles:

1. Dual Aspect Principle:

According to the dual aspect principle, every transaction has two aspects: a debit aspect
and a credit aspect. The total debits must always equal the total credits in the accounting
records. In other words, for every debit entry made to one account, there must be an equal
and opposite credit entry made to another account.

2. Asset = Liability + Equity Equation:

Double-entry bookkeeping follows the fundamental accounting equation, which states that
the total assets of a company must always equal the sum of its liabilities and equity. This
equation must hold true for every transaction recorded in the accounting system. For
example, when a company purchases inventory (an asset) on credit, it increases both
assets (inventory) and liabilities (accounts payable), keeping the equation balanced.

3. Recording Types of Accounts:

Double-entry bookkeeping categorizes accounts into different types based on their nature:
asset accounts, liability accounts, equity accounts, revenue accounts, and expense
accounts. Each type of account has specific rules for when to debit and credit. For instance,
asset accounts are increased with debit entries and decreased with credit entries, while
liability accounts are increased with credit entries and decreased with debit entries.

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

10. Complete the following table by listing three factors that may impact a budget once it is
implemented and the impact of these factors, as well as a change that may need to be made
to the budget based on the impact of these factors.

Factor Impact of factor Changes that may need to

be made to the budget

Economic Conditions Economic downturn Changes: If there's a

may lead to reduced downturn, the budget may
consumer spending, need to be revised to reduce
affecting sales and revenue projections and
revenue. Conversely, adjust expense levels to
economic growth may align with lower sales
expectations. In the case of
increase demand,
economic growth, the budget
leading to higher
may need to be revised to
sales and revenue.
accommodate higher sales
targets and potentially
increased investment in
marketing or production
capacity.

Market Competition Increased competition Changes: If facing increased

may lead to price competition, the budget may
wars or increased need to allocate additional
marketing expenses funds to marketing or
to attract customers, promotional activities to
impacting profit maintain market share. In the
case of reduced competition,
margins. Conversely,
the budget may allow for
a decrease in
higher pricing strategies,
competition may
leading to increased revenue
allow for higher prices
and potentially higher profit
and increased margins.
profitability.

Technological Advances Rapid technological Changes: If

advancements may technological
render existing advancements require
products or processes upgrades or
obsolete, requiring investments, the budget
investments in may need to allocate
research and funds for research and
development or development or capital
upgrades to expenditures.
infrastructure. Conversely, if new

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

Conversely, adopting technologies lead to

new technologies may cost savings, the budget
improve efficiency may be adjusted to
and reduce costs over reflect reduced
time. expenses in certain
areas, potentially
reallocating funds to
other strategic
initiatives.

FNSACC523 Manage budgets and forecasts V1.0 | 20

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

11. Outline two corporate governance principles and practices and how they are relevant to
budgeting and forecasting.

1. Transparency:
 Principle: Transparency in corporate governance refers to
the openness and accessibility of information related to the
organization's financial performance, operations, and
decision-making processes.
 Practice: In the context of budgeting and forecasting,
transparency entails providing stakeholders with clear and
comprehensive information about the assumptions,
methodologies, and underlying data used in developing the
budget and forecasts. This includes disclosing any significant
risks, uncertainties, or constraints that may impact the
accuracy or reliability of the financial projections.
 Relevance to Budgeting and Forecasting: Transparency
fosters trust and confidence among stakeholders by ensuring
that budgetary decisions are based on objective and reliable
information. It enables stakeholders, such as investors,
shareholders, and regulatory authorities, to assess the
reasonableness of budget targets and the credibility of
forecasted financial outcomes. Additionally, transparency
promotes accountability by holding management
accountable for the outcomes of budgeting and forecasting
processes.

2. Accountability:
 Principle: Accountability in corporate governance refers to
the obligation of individuals and entities to take
responsibility for their actions, decisions, and performance
outcomes.
 Practice: In budgeting and forecasting, accountability
entails establishing clear lines of responsibility for
developing, monitoring, and evaluating the budget and
forecast processes. This includes assigning roles and
responsibilities to specific individuals or departments, setting
performance targets and benchmarks, and implementing
mechanisms for performance measurement and evaluation.
 Relevance to Budgeting and Forecasting: Accountability
ensures that those involved in the budgeting and forecasting
processes are held responsible for the accuracy, integrity,
and effectiveness of their contributions. It encourages
adherence to established budgetary guidelines, compliance

FNSACC523 Manage budgets and forecasts V1.0 | 21

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

with financial policies and procedures, and adherence to

ethical standards. By holding individuals and departments
accountable for their performance in budgeting and
forecasting activities, organizations can enhance the
reliability and credibility of financial information, mitigate
risks of errors or biases, and improve decision-making
outcomes.

12. Complete the table by outlining the following statistical analysis and measures of variance and
their relevance to budgeting and forecasting.

a) Variance analysis Relevance: Variance analysis compares actual

financial results with budgeted or forecasted figures,
identifying differences (variances) and analyzing the
reasons behind them. It helps organizations
understand the effectiveness of their budgeting and
forecasting processes, identify areas of over or under-
performance, and make informed decisions to adjust
future plans accordingly.

b) Forecasting Relevance: Forecasting accuracy measures how

accuracy closely actual results align with forecasted values. It
provides insights into the reliability and effectiveness
of forecasting methods and assumptions. Improving
forecasting accuracy enhances the organization's
ability to anticipate future trends, allocate resources
effectively, and make informed decisions based on
more reliable projections.

c) Scenario analysis Relevance: Scenario analysis involves evaluating the

potential impact of various scenarios or alternative
future events on the organization's financial
performance. It helps in identifying potential risks and
opportunities, assessing their likelihood and potential
consequences, and developing contingency plans or
adjusting forecasts accordingly to mitigate risks and
capitalize on opportunities.

d) Hypothesis testing Relevance: Hypothesis testing is used to assess the

for assumptions

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 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

validity of assumptions underlying budgeting and

forecasting models. By subjecting assumptions to
statistical testing, organizations can determine
whether there is sufficient evidence to support or
reject them. This helps in ensuring the reliability and
accuracy of budgeting and forecasting processes by
identifying and addressing potential sources of bias or
uncertainty.

e) Resource allocation Relevance: Statistical analysis supports resource

and risk allocation and risk management by providing insights
management into the distribution and correlation of resources and
risks. It helps organizations optimize resource
allocation by identifying areas of potential over or
under-investment, and by quantifying and assessing
risks, organizations can develop strategies to mitigate
risks and allocate resources effectively to achieve
their strategic objectives.

FNSACC523 Manage budgets and forecasts V1.0 | 23

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

ASSESSMENT TASK 1:
CHECKLIST
Student’s name:

Did the student provide a Completed

sufficient and clear answer successfully?
that addresses the
suggested answer for the
Yes No
following? Comments

Question 1a

Question 1b

Question 2

Question 3a

Question 3b

Question 4

Question 5a

Question 5b

Question 5c

Question 5d

Question 5e

Question 5f

Question 5g

Question 5h

Question 5i

Question 5j

Question 5k

FNSACC523 Manage budgets and forecasts V1.0 | 24

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

Question 6

Question 7a

Question 7b

Question 7c

Question 7d

Question 7e

Question 8

Question 9

Question 10

Question 11

Question 12a

Question 12b

Question 12c

Question 12d

Question 12e

Task outcome:  Satisfactory  Not satisfactory

Assessor signature:

Assessor name:

Date:

FNSACC523 Manage budgets and forecasts V1.0 | 25

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

ASSESSMENT TASK 2:
PROJECT PORTFOLIO
INFORMATION FOR STUDENTS
In this task, you are required to demonstrate your skills and knowledge by working through a
number of activities and completing and submitting a Project Portfolio.

You will need access to:

 a suitable place to complete activities a suitable place to complete activities that replicates an
accounting environment including a computer, word processing and spreadsheet software and
access to the internet
 your learning resources and other information for reference
 your Project Portfolio template
 the Simulation Pack.

Ensure that you:

 review the advice to students regarding responding to written tasks in the Accounting and
Finance Works Student User Guide
 comply with the due date for assessment which your assessor will provide
 adhere with your RTO’s submission guidelines
 answer all questions completely and correctly
 submit work which is original and, where necessary, properly referenced
 submit a completed cover sheet with your work
 avoid sharing your answers with other students.

i ASSESSMENT INFORMATION

Information about how you should complete this assessment can be found in Appendix A of the
Accounting and Finance Works Student User Guide. Refer to the appendix for information on:
 where this task should be completed
 how your assessment should be submitted.
Note: You must complete and submit an assessment cover sheet with your work. A template is
provided in Appendix B of the Student User Guide. However, if your RTO has provided you with
an assessment cover sheet, please ensure that you use that.

FNSACC523 Manage budgets and forecasts V1.0 | 26

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

FNSACC523 Manage budgets and forecasts V1.0 | 27

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

ACTIVITIES
Complete the following activities.

1. Carefully read the following:

This project requires you to prepare and manage two different budgets and
forecasts for at two different clients. This must include:
 documenting and presenting each budget and forecasting estimate according
to:
o industry-standard accounting principles and practices

o organisational policies and procedures

o legal and ethical requirements

 establishing processes to monitor the budget outcome, analyse variances and

their possible causes, and making required changes in response.

Vocational education and training is all about gaining and developing practical skills
that are industry relevant and that can help you to succeed in your chosen career.
For this reason, basing your project on a realistic scenario will mean that you are
applying your knowledge and skills in a relevant, practical and meaningful way!

You will be collecting evidence for this unit in a Project Portfolio.

The steps you need to take are outlined below. Before you begin, complete page 4
of your Project Portfolio.

2. Prepare budgets and forecast estimates.

Make sure review the information in your Simulation Pack (Information required to
i
complete Section 1 of the Portfolio) to complete the activities below.

Prepare a budget and forecast for each client. This will involve:
 establishing and confirming budget objectives
 defining items to be included in the budget
 determining milestones and performance indicators
 identifying the data needed for forecasting, including anticipating changes in
circumstances
 establishing assumptions and parameters

FNSACC523 Manage budgets and forecasts V1.0 | 28

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

 preparing a budget and forecast:

o for the specified time period

o according to accounting principles and practices, policies and procedures

and legal and ethical requirements
o within agreed timeframes

 comparing projections with market growth and development to identify the

feasibility of the forecast.
You will also be required to develop processes that can be used to monitor the
budget outcome and analyse variances and their possible causes,
Work on Section 1 of your Project Portfolio that includes detailed activities that you
must complete.

You must complete the steps below for two different clients. This will be the two different
clients as per the information in your Simulation Pack.

Continue working on Section 1 of your Project Portfolio by preparing a presentation

to provide to each client for each of the two different budgets and forecasts you
have prepared.
Prepare your presentation using PowerPoint (or a similar app) in a clear format.
Make sure you use language and concepts suitable for your audience and the
intended purpose of the presentation. Each presentation should be approximately
five minutes.
Your assessor will advise you of the date and time for your presentation.
Complete Section 1 of your Project Portfolio by attaching the presentations you
have developed for each client.

You must prepare a presentation for each of the budgets and forecasts you have prepared.

3. Present your budget and forecasts.

Present each budget and forecast as per the presentation you have prepared. Your
assessor will observe you to assess that you can present the required financial
information to a range of personnel, using language and concepts suitable for your
audience and the intended purpose of the presentation.

4. Monitor your budget and forecasts.

FNSACC523 Manage budgets and forecasts V1.0 | 29

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

Make sure you review the information in your Simulation Pack (information required
i
to complete Section 2 of the Project Portfolio) to complete the activities below.

Based on the information provided, you are to analyse budget variances and make
recommendations to address the variances.
Complete Section 2 of your Project Portfolio, which includes detailed activities that
you must complete.

5. Submit your completed Project Portfolio.

Make sure you have completed all sections of your Project Portfolio, answered all
questions, provided enough detail as indicated and proofread for spelling and
grammar as necessary.
Submit to your assessor for marking.

FNSACC523 Manage budgets and forecasts V1.0 | 30

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

ASSESSMENT TASK 2:
CHECKLIST
Student’s name:

Completed
successfully?

Did the student: Yes No Comments

Complete the Project Portfolio Section 1

– Budget and forecast preparation?

Complete the Project Portfolio Section 2

– Budget monitoring?

Present financial information to clients

using language and concepts
appropriate to audience and purpose?

Task outcome:  Satisfactory  Not satisfactory

Assessor signature:

Assessor name:

Date:

FNSACC523 Manage budgets and forecasts V1.0 | 31

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

FINAL RESULTS RECORD

Student name:

Assessor name:

Date:

Unit name: FNSACC523 Manage budgets and forecasts

Qualification name:

FINAL ASSESSMENT RESULTS

Result

Task Type Satisfactory Unsatisfactory Did not submit

Assessment Task 1 Knowledge Questions S U DNS

Assessment Task 2 Project Portfolio S U DNS

Overall unit results C NYC

FEEDBACK

 My performance in this unit has been discussed and explained to

me.
 I would like to appeal this assessment decision.

Student signature: Hing Ka Lau_______________________________ Date: 22/02/25__________

FNSACC523 Manage budgets and forecasts V1.0 | 32

 Stanford College Australia
RTO Number: 40514 CRICOS Number: 03752B
Ground Floor/123 Lonsdale St, Melbourne, VIC 3000
Ph. (03) 8080 9820
Email: [email protected]

 I hereby certify that this student has been assessed by me and that
the assessment has been carried out according to the required
assessment procedures.

Assessor signature: _______________________________________ Date: _________________

FNSACC523 Manage budgets and forecasts V1.0 | 33