BSBFIM601 Manage Finance Advanced Diploma of Leadership and Management From: To: Era Nayeem Dated: Part A Question No 1 I work in a Hotel, where. It is business in which tourism is highly promoted. Amid my work in this industry, I have watched that the business environment in which my organization is working plays a significant role in contributing in the economy of the nation. There is an abnormal state of rivalry around the division, yet our organization tries to establish stability in its market share. It is part of the stock exchange and also has a centralized company with its own administration and ownership. Question No 2 I am the Financial Analyst of the hotel while my team is in charge of the supervision and also for procurement. Hotel industry requires raw materials in order to manage the standards of the hotel so for this my team has been responsible for putting in their hard work and providing services. Question No 3 As a Financial Analyst it is my obligation to oversee store. Store keeping is imperative in hotel and tourism industry. When inventory is up to date hotel can have proper management. Store administration is an essential work in the organization as there are insights about requirements and purchases. I am additionally in charge of providing management reports to the top administration. Part B Question No 1 Strict reliability to the code of ethics bolsters undeviating trustworthiness, especially in industrial (money related policies) matters and legal requirements. Guaranteeing that your business consolidates a sensible honesty worth framework can easily get you a legit name within the community. Question No 2 Two-sided exchange or bilateral trade agreements (BTAs) are an extremely imperative social extension inside the world nowadays. Actually, a respective exchange according side the world has one shaped between 2 obtaining parties, and a local exchange according is one made between 2 or other supplementary procuring parties who share some values which are also known as "area or region." The point of such assention is to develop exchange relations between the individuals. In this time of globalization, the globe mercantilism request relies on upon the World Trade Organization (WTO) Agreement which could have four-party composed understanding. Question No 3 Global modern Terms are a progression of per-characterized mechanical procurement composed by the International Chamber of Commerce (ICC). They're comprehensively utilized as a part of International dealings or picking up procedures in an industry. A grouping of three-letter exchange terms connected with normal printed accord deals hones, the Inco expressions principles are predetermined basically to impart the tasks, expenses, and risk and contingency related to the transportation and conveyance of items. They're expected to downsize or take away general questions emerging from entirely unexpected comprehension of the establishments in few countries they're regularly included into contracts related to sales around the world. Question No 4 GST GST applies to most organizations and industry present in Australia and it's very likely that your business will be influenced by the expense. Enlisting for GST is vital if: • Business gets GST turnover around $75 000 or more i.e. ($150 000 or more then this for charitable associations) • Business regardless of GST turnover serves with taxi service for traveling. To enlist, business should finish an application structure. On the off chance that business needs to apply for an Australian Business Number (ABN) and simultaneously can utilize the same structure. Business requires an ABN to get enlisted for GST, ABN will likewise be business GST enrollment number. PAYG (Pay as you go) As a business administrator, you have three primary commitments with regards to paying your workers: • withhold as indicated by the compensation as you go (PAYG) withholding rules in connection to payments to hotel workers. • pay super commitments to an agreeing super reserve or retirement account in the interest of qualified workers, executives and temporary workers, and offer qualified representatives a decision of super fund • Provide payment rundowns for compensation, salaries, termination, livelihood, employment and reportable incidental advantages sums. Under PAYG withholding framework, you should withhold sums generated from payments, for example, • Wages or salary to representatives • Remuneration for organization executives • Termination, Retirement payments, annuities, and also compensatory or benefit payments. Company Tax The tax assessment reporting known as The business activity statement (BAS)is the necessity for organizations being issued by taxation department is either produced on a month to month or on quarterly premise. It's utilized for paying products and administrations tax (GST), installments, pay as you go (PAYG), PAYG withholding charge and other expense commitments. When you enlist for an Australian business number (ABN) and also for GST, Taxation authorities will consequently send you a BAS when the time has come to lodge. All organizations enlisted for GST are required to hold up a BAS by their due date. Question No5 An estimate of spending and proceeds for a specific period of time is known as budgeting. It is a technique for creating knowledge about paying your money. The disbursal position has also been known as budgeting. Creating disbursal helps you to foresee your expense regardless of whether you may have enough money to attempt to do something or not or are able to do the things the way you desire. Question No6 In the event when you don't have adequate money to attempt and do the entire thing the way you had wished to do, then you'll have the capacity to utilize this plotting system to limit your disbursal and concentrate your money for the things that are most critical to you. Since budgeting and planning helps you to create a disbursal set up for your money, it guarantees that you fundamentally can consistently have ample money for the things you might want; furthermore it will keep you out of debt and can also lead you out of debt if you are into one. Some advantages of budgeting are listed below: ● Profitability review ● Planning orientation ● Assumptions review ● Funding planning ● Bottleneck analysis ● Performance evaluations ● Cash allocation Question No 7 An arrangement planned to involve clarification of a conceivable future occasion or situation. An emergency course of action could be a contingency plan that helps a company reacts adequately to a noteworthy future event. An emergency course of action or contingency plan is largely commented as "Plan B," this Contingency planning could be a component of business progression, disaster recuperation and risk administration. Question No 8 Strict adherence to any plan must be guaranteed by business with regards to control the improvement costs. These are significant payment done by the business which ought to be done by following a plan. Question No 9 Feedback is extremely noteworthy in any association. Streamline feedback framework can be guaranteed by the dynamic commitment of managers of the offices or departments. They can urge staff to contribute in basic decision making process and provide their feedbacks in choices and about organization's strategy. A decent administration data framework will be extremely valuable in making a feedback framework. Question No 10 Financial management alludes to the very much sorted out and fruitful administration of cash (assets) in such a procedure which aims to accomplish the goals of the company. It is the specific capacity which particularly connects the top administration. It has been characterized contrastingly by various specialists in the field. The term as a rule applies to an association or organization's monetary technique. It incorporates the allocation of the capital which is capital budgeting. Not just for long haul planning, as well as how to assign the assets like current liabilities being short term. It additionally manages the dividends of all share holders. Part C Gross pay = hours worked * rate = 40*20 = 800 Over Time = hours worked * rate = 8*10 = 80 Flexible Budget AT 40000 units Variable cost per unit Fixed Cost per unit Light $1.6 Depreciation $0.5 Repair $0.9 Security $0.4 Cleaning $0.45 Rates $0.125 Payroll $0.35 Insurance $0.175 Total $3.3 Total $1.2 Total cost at 40000 Variable cost = 40000*3.3 = $ 132000 Fixed Cost = $ 48000 AT 45000 units Variable cost per unit Fixed Cost per unit Light $1.6 Depreciation $0.44 Repair $0.9 Security $0.35 Cleaning $0.45 Rates $0.11 Payroll $0.35 Insurance $0.15 Total $3.3 Total $1.05 Total cost at 45000 Variable cost = 45000*3.3 = $ 148500 Fixed Cost = $48000 AT 50000 units Variable cost per unit Fixed Cost per unit Light $1.6 Depreciation $0.4 Repair $0.9 Security $0.32 Cleaning $0.45 Rates $0.1 Payroll $0.35 Insurance $0.14 Total $3.3 Total $0.96 Total cost at 45000 Variable cost = 50000*3.3 = $ 165000 Fixed Cost = $ 48000 c) Variable and fixed expenses have their own particular conduct on production level. Here total fixed cost is fixed for all productions but for per unit it decreases as production level increments. Variable per unit continues as before at various levels of productions but gives increment altogether as the level of production increments. C) Q No 2 We shall apply high- low method for calculating the variable and fixed costs. Variable cost = Y2-Y1 / X2-X1 = 41000-30900 / 4150- 2850 = 7.76 Fixed cost = 41000 - (7.76*4150) = 41000 – 32204 = 8796 At 3500 level Y = a + b x = 8796 + 7.76*3500 = 35956 C) Q No 3 Material price variance = Actual price* Actual Qty – Actual Qty* Standard Price = 216900- 21600 = 900 Material efficiency variance = Actual unit usage – Standard unit usage * Standard cost/ units = 31250- 31240 * 4.80 = 48 Labor efficiency variance = Actual hours – Standard hours * Standard rate = 11980 - 11715 * 8.80 = 2332 Labor rate variance = Actual rate – Standard rate * Actual hours worked = 8.85 – 8.80 * 11980 = 599 OH efficiency variance = Actual hours – Standard hours * standard OH rate = 11980 – 11715 * 45 = 11925 Spending variance = Actual OH rate – Standard OH rate * Actual hours worked = 9.97 – 10 * 11980 = 359.4 Tables: Expenses and income for the months: June and July June July Income Income Description Amount Description Amount Beverage sales 7000 Beverage sales 7000 Sales 25000 Sales 30000 Fuel tax credit 3000 Fuel tax credit 3500 Delivery charges 5000 Delivery charges 5500 Total 40000 Total 46000 Expenses Expenses Wages and salaries 15000 Wages and salaries 15000 Advertising 2000 Advertising 1500 Purchase 5000 Purchase 8000 Insurance 700 Insurance 700 Total 22700 total 25200 Net Balance 17300 Net Balance 20800 Financial plans and Team Budgets Balance sheet 2016 for bakery and café: Assets Building 5000 Cash 45000 Furniture 10000 Lights 2500 Equipment 8000 Total 70500 Liability Bank loan 50000 Bank cards 10000 Total 60000 Lighting $64000 $64000 $64000 Cleaning $18000 $18000 $18000 Payroll tax $14000 $14000 $14000 Repairs $36000 $36000 $36000 Total Variable cost $132000 $132000 $132000 Fixed Cost Security $16000 $16000 $16000 Depreciation $20000 $20000 $20000 Insurance $7000 $7000 $7000 Rates $5000 $5000 $5000 Total fixed cost $48000 $48000 $48000 Total cost $180000 $180000 $180000 Cost per unit fixed $1.20 $1.07 $0.96 Cost per unit variable $3.30 $2.93 $2.64