Course Title: Manage budgets and forecasts
Part B: Course Detail
Teaching Period: Term1 2024
Course Code: ACCT5441C
Course Title: Manage budgets and forecasts
School: 525T Business & Enterprise
Campus: City Campus
Program: C5424 - Diploma of Accounting
Course Contact: Doug Gourlay
Course Contact Phone: +61 3 9925 5944
Course Contact Email: doug.gourlay@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
Course Coordinator:
Meetu Aggarwal
Contact no: 9925 1621
Email: meetu.aggarwal@rmit.edu.au
Contact hours:
Monday to Friday: 8:30am - 5:30pm
Nominal Hours: 40
Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.
Pre-requisites and Co-requisites
There is no pre-requisite for this unit.
Course Description
This unit describes the skills and knowledge required to prepare, document, and manage budgets and forecasts. It involves forecasting estimates and monitoring budgeted outcomes.
The unit applies to individuals who use specialised knowledge and analytical skills to prepare and manage strategic organisational information.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title: |
FNSACC523 Manage budgets and forecasts |
Element: |
1. Prepare budget |
Performance Criteria: |
1.1 Establish budget objectives and confirm their consistency with organisational policies and procedures 1.2 Define cash, expenditure and revenue items and determine if items are relevant to budget 1.3 Identify and include milestones and performance indicators in budgets to monitor financial performance and break down annual budgets into seasonal periods according to operating trends |
Element: |
2. Forecast estimates |
Performance Criteria: |
2.1 Identify required data for forecasts and anticipate changes in circumstances 2.2 Establish assumptions and parameters and review for accuracy, relevance and compliance with organisational policies and procedures 2.3 Provide realistic estimates of future cash flow, costs and revenues according to ethical and organisational requirements, and support with verifiable evidence and source documentation 2.4 Identify financial risks and propose protection strategies according to organisational policies and procedures |
Element: |
3. Document and distribute budget |
Performance Criteria: |
3.1 Present data in a clear format appropriate for budget reporting 3.2 Complete reports for specified periods and projects within agreed timeframes 3.3 Identify feasibility of forecasts by comparing projections with market growth and development 3.4 Distribute budget report to required personnel |
Element: |
4. Monitor budget outcomes |
Performance Criteria: |
4.1 Analyse budget variances according to organisational procedures, and make recommendations to address variances to client or designated person 4.2 Review budget processes and implement process changes as required |
Learning Outcomes
Details of Learning Activities
Students will be expected to attend a 2 hour class each week in the semester. Students will be introduced to budgets, which will then be supported by practical illustrations. Students will complete exercises to reinforce their understanding of the material. Solutions will be available on the learning hub.
Teaching Schedule
The Teaching Schedule for this course is as follows:
Induction Session
Prior to training commencement a program level induction session will be conducted that comprises the following:
· Program overview and requirements
· MyRMIT/Canvas
· Overview of assessment requirements
· Pre-Training Review including:
o Recognition of Prior Learning and Credit Transfers
o Assessment of current skills and knowledge
· Competency/Grading Criteria
· Plagiarism
· Appeals
· Extensions
· Feedback
· Privacy
· Submission requirements
· Resubmission policy
· Where to get support
· Student Charter
Week |
Week Commencing |
|
Assessments to be completed in your own time |
1 |
12 Feb 2024 |
Chapter 1: Introduction to Budgeting - Reasons for budgeting - Types of Budgets - Budget development process - Importance of monitoring performance
Chapter 2: Forecasting - Use of statistics for decision making - Forecasting methods and trends - Risk analysis when forecasting Release of Online quiz 1
|
Release of Assignment 1 to be submitted by the end of week 3. |
2 |
19 Feb 2024 |
Chapter 4: Operating Budgets – Manufacturing - Production budgets - Purchase budgets |
|
3 |
26 Feb 2024 |
Chapter 4: Operating Budgets – Manufacturing - Production budgets - Purchase budgets - Direct labour budgets Release of Online Quiz 2 |
Submission of Assignment 1 |
4 |
4 Mar 2024 |
Chapter 4: Operating Budgets – Manufacturing - Factory overhead budgets - Cost of production budgets - Expense budgets |
Release of Assignment 2 Part A (group work). To be submitted by the end of week 14. |
5 |
11 Mar 2024 |
Chapter 4: Operating Budgets – Manufacturing - Cost of goods sold budget - Comprehensive questions related to the topic |
|
6 |
18 Mar 2024 |
Chapter 4: Operating Budgets – Manufacturing - Comprehensive questions related to the topic |
|
7 |
25 Mar 2024 |
Chapter 5: Cash Budgets - Accounts receivable collections budget - Cash receipts budget - Cash payments budget - Preparing the cash budget |
|
|
|
Mid-semester Break 29 Mar to 7 April 2024 |
|
8 |
8 Apr 2024 |
Chapter 5: Cash Budgets - Preparing the cash budget |
|
9 |
15 Apr 2024 |
Chapter 5: Cash Budgets - Preparing the cash budget |
|
10 |
22 Apr 2024 |
Chapter 6: Financial Budgets - Budgeted Income Statement |
|
11 |
29 Apr 2024 |
Chapter 6: Financial Budgets - Budgeted Income Statement - Budgeted Balance Sheet |
|
12 |
6 May 2024 |
Chapter 6: Financial Budgets - Budgeted Income Statement - Budgeted Balance Sheet
|
|
13 |
13 May 2024 |
Chapter 7: Performance reports - Monitoring and modifying the budget - Analysing variances and corrective action - Contingency plans and risk management
|
|
14 |
20 May 2024 |
Discussion on Assignment 2 Part B |
Submission of Assignment 2 Part A Release of Assignment 2 Part B (individual work). To be submitted by the end of week 15. |
15 |
27 May 2024 |
Presentations related to Assignment 2 Part B |
Submission of Assignment 2 Part B |
16 |
3 Jun 2024 |
Re-submission of Assignment 2 |
|
17 |
10 Jun 2024 |
Re-submission of Assignment 2 |
|
18 |
17 Jun 2024 |
Re-submission of Assignment 2 |
|
The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.
The schedule can change in unforeseen circumstances.
Learning Resources
Prescribed Texts
Manage Budgets and Forecasts by Richard Hughes & Tony Kirby, 8th edition by Learn Now Publishers |
978-1-76073-285-1 |
References
Other Resources
Overview of Assessment
In order to achieve competency in this unit, you must provide:
Performance Evidence
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
- prepare and manage at least two different budgets and forecasts for at least two different clients.
In the course of the above, the candidate must:
- document and present each budget and forecasting estimate according to:
- industry-standard accounting principles and practices
- organisational policies and procedures
- legal and ethical requirements
- establish processes to monitor the budget outcome, analyse variances and their possible causes, and make required changes in response.
Knowledge Evidence
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
- purpose and objectives of budgets and forecasts, including relevance of milestones and key performance indicators
- ethical requirements associated with budgetary forecasting and projections within the context of the strength of assumptions and forecast reliabilities
- types and sources of data and information required for budgeting and forecasting
- budget forecasting techniques
- organisational policies and procedures relating to budgeting and forecasting
- principles of accrual accounting and double-entry bookkeeping
- impact of implementation on budgeting and the monitoring of budget outcomes
- key principles and practices of:
- corporate governance
- statistical analysis and measures of variance.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
- office equipment, technology, software and consumables required to manage budgets and forecasts, including:
- access to the internet
- digital technologies to access, extract and share required information.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.
Feedback
Feedback will be provided throughout the semester in class and/or online discussions. You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.
You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.
Assessment Tasks
Students MUST successfully complete the below mentioned assessment tasks and gain competency in order to pass this course.
ASSIGNMENT 1 - (Due date: Week 3)
You will be preparing operational budgets of a business. This assessment is competency based and a CA (competent) must be achieved for this assessment.
ASSIGNMENT 2 - Part A (Due date: Week 14)
You will be preparing various budgets of a simulated business and then you will be performing variance analysis. Based on this analysis, you will be suggesting various corrective actions which should be taken by the business in order to improve the position of the business. This assessment is competency based and a CA (competent) must be achieved for this assessment.
ASSIGNMENT 2 - Part B (Due date: Week 15)
You will be presenting your results of your analysis and suggestions to the business in an in-class power point presentation. It should not exceed 3-4 minutes. This assessment is competency based and a CA (competent) must be achieved for this assessment.
Students can be asked to reproduce any assessment piece in front of the teacher.
Assessment Matrix
The assessment matrix that maps all the assessment is available on CANVAS under Assignments.
All assessments will utilise a competency-based model and will be deemed as either Satisfactory or Not Yet Satisfactory.
Other Information
Submission Requirements
You should:
- Ensure that you submit assessments on or before the due date.
- Always retain a copy of your assessment tasks. (hard copy and soft copy)
- When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of each assessment task is available on blackboard.
- Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.
Late Submission Procedures
You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days.
More Information:
Where an extension of greater than seven days is needed, you must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination.
More Information:
Re-submissions (VET Programs):
If you are found to be unsuccessful in a Course Assessment Task you will be allowed one re-submission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the re-submission. The highest result you will receive if your re-submission is successful is “CA”.
If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.
Adjustments to Assessment
In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website:
More Information:
Marking Guide (Competency):
You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying. You will receive feedback on each assessment task that will inform you about your progress and how well you are performing and you will achieve one of the following results:
Final Results table:
CA |
Competency Achieved |
NYC |
Not Yet Competent |
DNS |
Did Not Submit for assessment |
Course Overview: Access Course Overview