BSB60407 - The Budgetary Processes - Business Management

Internal Code: TV3

Business Management

Option 1: The budgetary processes that exist in your organization: a. Giving examples of budgets used in your organization b. Who is responsible for their preparation c. How variances are identified and actioned d. What consequences could impact the organization and its operating environment if the budget process is       inadequate (ie. social impact, resources etc) e. Using your organization's financial reports (or alternatively, you can access an Australian company financial report via the internet), calculate and comment on the following ratios: - Profitability - Liquidity - Asset management - Financial leverage f. Your analysis should refer to bench marking and use should make an assessment of the financial health of the organization. (If you work for a not-for-profit organization your analysis may differ to that of a commercial organization. For example, you will discuss surplus or deficit rather than profit. In areas such as asset management many not-for-profit tend to be asset rich and relatively cash flow poor, eg, public hospitals. As with commercial organizations bench marking to-like organization is a critical analysis tool in assessing the financial health of a not for-profit organization). g. Refer to supplementary material no. 1 on page 93 and comment upon what tax considerations will be relevant to your organization. h. Are there any actions you would recommend as a result of your analysis? Option 2: Obtain two annual reports from either: • Woolworths: www.woolworths.com.au • BHP Billiton: www.bhpbilliton.com • Wesfarmers: www.wesfarmers.com.au • ANZ Bank: www.anz.com.au Compare and contrast the annual reports from your chosen two organizations: • Describe the methodology you believe the organization has adopted in preparing and managing its financial reports • Describe in detail the purpose of ratio analysis to the organization and also to those that have a vested interest in the company/firm. • Using your chosen two organizations financial reports, comment on the following ratios: - Profitability - Liquidity - Asset management - Financial leverage