BSBFIN501: Manage Budgets and Financial Plans Learner Assessment Pack

Assessment Task 1 Plan financial management approaches

In this task, you will demonstrate your ability to plan financial management approaches for the case study company:

Big Red Bicycle

The Big Red Bicycle company materials you will need to complete your assessment are included in this assessment with further spreadsheets available online for you to download.

NOTE: The work completed for this assessment task provides the basis for completing Assessment Tasks 2, 3 and 4. Ensure you keep a copy of this completed assessment for future use.

Case Study Scenario

The Big Red Bicycle company materials you will need to complete your assessment are included in this assessment pack. The Big Red Bicycle Pty. Ltd. is a bicycle manufacturer based in Bendigo, Victoria. The company produces bicycles that it sells to retailers in the domestic Australian market. The senior management structure of the company appears below.

Assessment Task 2 Implement financial management approaches

In this second task you will demonstrate the ability to implement financial management approaches for the case study company:

Big Red Bicycle

Task 2 Specifications

• Screenshot of two documents

• Planning your Social Media Video

• On-demand Video & support materials

  • Overview of the team budget

  • Petty Cash Spreadsheet

  • Other communications/support materials

• Email to administration assistants inviting them to access the on-demand video

• On-demand video on using the Petty Cash Spreadsheet

• Budget monitoring report

• Action Plan

• Email to all departments

Assessment Task 3 Monitor and control finances

For this assessment task you will demonstrate your ability to monitor and control finances for the case study company:

Big Red Bicycle

Task 3 Specifications

• Budget variance spreadsheet Q2

• Updated Contingency Plan

• Monitoring Action Plan

• Email to Management

• Email to the team

• Budget Monitoring Report Quarter 2

• Budget Variance Spreadsheet Quarter 3

• Budget Monitoring Report Quarter 3

Assessment Task 4 Review and evaluation financial management processes

For the final assessment task in this pack, you will demonstrate your ability to review and evaluate financial management processes for the case study company:

Big Red Bicycle

Task 4 Specifications

• Cash flow calculations

• Email to Tom Copeland

• Contingency plan

• Procedure for Credit Terms and their Management

• Calculations

• Email to Tom Copeland

• Cash flow and profit and loss report

• Email to all departments

• GST budget

Based on the information in the case study, provide answers to the following making sure to show your calculations:

1. How many units at the current variable cost would need to be produced to achieve the profit target (outlined in the scenario details above)?

2. What would the variable costs per unit need to be to achieve the profit target at current manufacturing capacity?

Draft an email to Tom Copeland detailing the improvements you are implementing to ensure the financial objectives of the organisation are achieved, based on your analysis. To support your recommendations your email must include:

• Organisational needs and the situation

• Analytical techniques used

• Actions for the organisation to take

• List the sources of information you have used to undertake your analysis and make your recommendations.

Using the information you have gathered from the case study and Questions 1 and 2, develop the cash flow and profit/loss report that can be used by management.

With the reports prepared you need to issue them to all department managers and notify them that they are now implemented and will be monitored monthly. Draft an email to all departments and attach the cash flow and profit/loss report created in Question 3. Explain the purpose of the reports and ensure they are clearly advised of the ongoing monitoring and timelines for review of each report.

Based on the information in the case study, provide answers to the following making sure to show your calculations:

1. How many units at the current variable cost would need to be produced to achieve the profit target (outlined in the scenario details above)?

2. What would the variable costs per unit need to be to achieve the profit target at current manufacturing capacity?

Draft an email to Tom Copeland detailing the improvements you are implementing to ensure the financial objectives of the organisation are achieved, based on your analysis. To support your recommendations your email must include:

• Organisational needs and the situation

• Analytical techniques used

• Actions for the organisation to take

• List the sources of information you have used to undertake your analysis and make your recommendations.

Using the information you have gathered from the case study and Questions 1 and 2, develop the cash flow and profit/loss report that can be used by management.

With the reports prepared you need to issue them to all department managers and notify them that they are now implemented and will be monitored monthly. Draft an email to all departments and attach the cash flow and profit/loss report created in Question 3. Explain the purpose of the reports and ensure they are clearly advised of the ongoing monitoring and timelines for review of each report.

Brief Summary of Assessment Requirements

The BSBFIN501 – Manage Budgets and Financial Plans assessment pack requires students to demonstrate competency in planning, implementing, monitoring, controlling, and evaluating financial management processes for a case study company, Big Red Bicycle Pty. Ltd. The assessment is divided into four tasks:

1. Assessment Task 1 – Plan Financial Management Approaches

   • Analyze the company’s financial management requirements.

   • Prepare budgets, financial plans, and strategies using provided spreadsheets.

   • Ensure work forms the foundation for Tasks 2, 3, and 4.

2. Assessment Task 2 – Implement Financial Management Approaches

   • Apply financial plans in practice.

   • Prepare and manage team budgets, petty cash, and supporting materials.

   • Draft internal communications such as emails and action plans.

3. Assessment Task 3 – Monitor and Control Finances

   • Track and evaluate financial performance using budget variance reports and monitoring tools.

   • Update contingency plans and provide regular reports to management and teams.

4. Assessment Task 4 – Review and Evaluate Financial Management Processes

   • Analyze cash flow and profit/loss reports.

   • Recommend actions to meet financial objectives.

   • Communicate findings to management and departments through structured emails.

Key Pointers to Cover:

• Calculation of units needed to meet profit targets.

• Variable cost per unit analysis.

• Cash flow and profit/loss report preparation.

• Implementation and monitoring of financial reports.

• Drafting professional emails with recommendations and instructions.

• Adherence to financial management best practices and reporting timelines.

Approach Guided by Academic Mentor

The Academic mentor guided the student step-by-step to ensure understanding and correct application of financial management principles:

1. Understanding the Case Study

   • The mentor helped the student review the Big Red Bicycle scenario, focusing on company operations, market, and objectives.

   • Key emphasis was placed on understanding financial needs, profit targets, and reporting structures.

2. Task 1 – Planning Financial Approaches

   • The student was guided to identify financial objectives and plan approaches using spreadsheets provided.

   • Mentor demonstrated the use of tools for budget forecasting, cost analysis, and scenario planning.

3. Task 2 – Implementation

   • The student applied planned budgets to real-world-like scenarios.

   • Mentor reviewed spreadsheets for team budgets, petty cash management, and documentation.

   • Drafting emails and action plans was practiced to ensure clarity and professional communication.

4. Task 3 – Monitoring and Control

   • Mentor emphasized interpreting budget variance reports and monitoring outcomes against planned objectives.

   • The student learned to update contingency plans, identify deviations, and communicate adjustments effectively.

5. Task 4 – Review and Evaluation

   • The mentor explained how to prepare comprehensive cash flow and profit/loss reports.

   • Student was guided to calculate units needed for profit targets and determine variable costs per unit.

   • Focus was given to communicating findings to management and departments through formal reports and emails.

Outcome and Learning Objectives Achieved

Outcome:

• The student successfully prepared a full suite of financial management documents, including budgets, cash flow and profit/loss reports, and monitoring plans.

• Professional email drafts were created to communicate recommendations and updates to management and departments.

• Implementation and monitoring procedures were established for continuous review.

Learning Objectives Covered:

• Develop and implement effective financial management strategies.

• Apply analytical techniques to determine costs, budgets, and profit targets.

• Monitor and control financial operations using variance analysis and contingency planning.

• Communicate financial information clearly and professionally.

• Evaluate and improve financial management processes for organizational efficiency.

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