What information needs to be communicated to those

Assignment Detail:- SITXFIN004 Prepare and monitor budgets Assessment task: Knowledge Test Question 1- Which type of budget uses the previous period's actual or budgeted figures as a basis for the next budget????-a- Incremental budget- -b- Zero-based budget--c- Rolling or continuous budget--d- Cash analysis budget- Question 2- What are three examples of performance data that can be used when preparing budgets????-a- Sales figures, average customer spend and timesheets- -b- Fixed costs, indirect costs and liability costs--c- Interest rate percentages, capital financing rates and economic indicators--d- Labour rates, wage rates and penalty rates- Question 3- What is an example of an external factor that will influence a budget????-a- Staff do not have the required selling skills to meet sales deadlines--b- The manager wants to add to the list of services currently offered by the organisation--c- Your department is unstaffed and this is affecting customer service levels--d- One of your major competitors in the area has closed down- Question 4- Why should colleagues be consulted and provided the opportunity to contribute to the budget planning process????-a- So they can't complain later as they were asked to contribute and chose not to--b- It helps ensure budget targets are based on accurate information and are achievable- -c- To make sure the budget targets meet everyone's needs in the business, including staff and management--d- To create a budget that is easily understood by everyone using it- Question 5- What information do you need to analyse prior to drafting a budget????-a- Previous figures and variances- -b- Previous experience of the person preparing the budget--c- Employee records and rosters--d- Supplier agreements- Question 6- What is the most reliable way to estimate income and expenditure????-a- Refer to previous financial reports and ensure they're supported with valid, reliable and relevant information- -b- Speak to other managers and co-workers and calculate an average based on their estimates--c- Conduct industry research to calculate standard income and expenditure rates expected in your type of business--d- Use your experience and prior knowledge to set realistic income and expenditure goals for your team or department- Question 7- What must you always keep in mind when drafting a budget????-a- The total profit you want to make--b- Organisational objectives- -c- How many hours it takes to complete the budget--d- The benefits of using a paper-based record keeping system- Question 8- What format do you use to clearly present information comparing sales budget targets for the next 12 months for each department within the organisation???? -a- Formal written report--b- Verbal presentation--c- Hands-on workshop--d- Graphical presentation- Question 9- You've prepared a draft budget based on your analysis of all available information- Why do you circulate the draft budget to colleagues and managers prior to a budget meeting????-a- It creates a feeling of participation and involvement amongst the team so they are more likely to take on ownership of budget outcomes--b- It allows time to assimilate and evaluate the information and provide input- -c- It allows time for sections to be recalculated based on changes to pricing structures, environmental factors or wage rises--d- Managers can begin preparing budgets for their work area for presentation at the budget meeting- Question 10- What should you do before finalising the draft budget????-a- Use your teamwork skills to negotiate the budget in consultation with colleagues- -b- Make sure you've not overlooked the opportunity to delegate the responsibility to someone else--c- Use your problem-solving skills to make several revisions before finalising any figures--d- Make sure the budget results in a net profit- Question 11- After consulting with colleagues, which modifications are you likely to incorporate before finalising the budget- -a- Agreed modifications that are likely to foster better working relationships amongst team members regardless of budget results--b- Modifications that result in quick and easy profits for the work section or organisation--c- Only modifications that everyone within the affected team or every department agrees on--d- Agreed modifications that are viable, achievable and likely to enhance the performance of the budget- Question 12- How and when should a budget be finalised????-a- As quickly as possible in a format that you're familiar with--b- In a clear format within designated timelines- -c- In teams of two or more people--d- Online or in consultation with an accountant- Question 13- What information needs to be communicated to those responsible for implementing and administering the budgets????-a- How the budgets will be distributed to others within the organisation--b- Any communication between the general manager and head office relating to budget targets--c- Previous draft budgets to assist in the understanding of why specific targets have been set--d- Reporting and financial responsibilities for their area of control- Question 14- Why are forecasted budget and actual figures compared regularly throughout, and at the end of, the budget period????-a- To make sure the budget figures are accurate--b- So managers can change the budget figures to make sure they are not under or over budget at the end of the period--c- To evaluate performance and determine if operational changes need to be made- -d- To evaluate the efficiency of the budget planning process- Question 15- What types of financial commitments are included in budgets???? -a- Financial business goals and mission statements--b- Debts, utilities, food and beverage purchases- -c- Weekly staff rosters and food and beverage purchase orders--d- Income gained from investments and distributed to shareholders- Question 16- The size of the variance and the cost of the investigation are two factors to consider when deciding if a deviation is significant and worth further investigation- What other factor should you consider????-a- Regularity of the variance- -b- Variances over $5,000- -c- Number of customers affected--d- The establishment's reputation- Question 17- Essential equipment has broken down and is likely to result in higher payroll costs and maintenance expenses- What should you do????-a- Order new equipment and allocate the cost to the next reporting period--b- Analyse the likely impact and modify budgets where required- -c- Calculate expected costs and deduct from the final figure in the cash flow budget--d- Make roster changes to ensure payroll costs are kept to a minimum- Question 18- Why is it important to record information for future budget preparation????-a- It helps staff understand why budgets are necessary--b- Managers can use the information to duplicate the current budget if it is lost--c- It can assist in planning more achievable and realistic budget targets- -d- Companies can understand why they are not meeting expected targets-  

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