BSBFIM601 Manage Finance Question and Answer 2022

Assessment Task 3 BSBFIM601 Manage finances
Written questions and
answers
Submission details
The assessment task is due on the date specified by your assessor. Any
variations to this arrangement must be approved in writing by your
assessor.
Submit this document with any required evidence attached. See
specifications below
for details.
Performance objective
The candidate will demonstrate the ability to describe the skills and
knowledge required to establish the strategic direction of the organization,
sustain competitive advantage and enhance competitiveness.
Assessment description
In this assessment task, you are required to provide answers to the
questions asked. You may use additional documents as required.
Procedure
1. Read and understand the questions clearly.
2. Provide answers to the questions asked.
3. Give examples from your own experience as far as possible.
4. Submit all documents required in the specifications below to your
assessor. Ensure you keep a copy of all work submitted for your
records.
Specifications
You must:
● meet with your assessor to clarify any confusion
● provide answers to all the questions
● Submit your notes and any additional documents.
● If you utilise material from published authors make certain that you
cite and reference appropriately. If you do not know how to reference
discuss this with your assessor. Plagiarism is unacceptable.
Your assessor will be looking for your ability to:
● plan for financial management
● read and review profit and loss statements, cash flows and aging
summaries
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RTO 41297 | CRICOS 03444C
Jan 2018 version: 2.0

Assessment Task 3 BSBFIM601 Manage finances
● prepare, implement and revise a budget which aligns with the
business plan, is based on research and analysis of previous financial
data and cash flow trends, and meets all compliance requirements
● contribute to financial bids and estimates
● establish a budget and allocate funds in accordance with statutory
and organisational requirements
● communicate with other people including:
 reporting on financial activity and making recommendations
 identifying and prioritising significant issues
 Ensuring managers and supervisors are clear about budgets.
● analyse the effectiveness of existing financial management
approaches including reviewing financial management software,
managing risks of misappropriation of funds, ensuring systems are in
place to record all transactions, maintaining an audit trail and
complying with due diligence.
Adjustment for distance-based learners
● No variation of the task is required.
● Documentation can be submitted electronically or posted in the mail.
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RTO 41297 | CRICOS 03444C
Jan 2018 version: 2.0

Assessment Task 3 BSBFIM601 Manage finances
Answer the following questions:
You are required to answer the questions given below. You may either use
the space being provided for your answers or attach separate answer
sheets as required.
1. In your own words, describe responsibility accounting?
The accounting system that is involved internally for budgeting of the
company. Responsibility accounting helps in organizing and controlling
the responsibility centers of the company. This accounting is related with
the assembling and reporting profits and cost by area of responsibility.
The top managers of the company could use the report and then they
can focus on the strategic or long term planning for the organization.
This also provides a guide for the performance evaluation. The
performance of the manager and his assistants are evaluated based on
the attainment of these goals. The company expects from the
management to find out the causes and solves it. Suppose if the
company in incurring high cost than the expected budget then the
responsibility of the management will be to fix the concern.
2. Which of the following statements relating to a budget is not true?
a) It is a detailed plan
b) It is a management tool
c) It provides many of the performance targets used in
responsibility accounting
d) It is prepared on a historical basis
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RTO 41297 | CRICOS 03444C
Jan 2018 version: 2.0

Assessment Task 3 BSBFIM601 Manage finances
e) It identifies certain financial and operating targets
As per the different options which are available from the above options,
the fourth option is not true.
3. Detail 4 different types of budgets, and their purposes.
Choice Business College Page 4 of 18
RTO 41297 | CRICOS 03444C
Jan 2018 version: 2.0