BSBFIM501 Manage Budgets and Financial Plans - Assessment Task 1

This assessment task covers the key concepts and skills required to manage budgets and financial plans effectively. It includes tasks related to developing a master budget, creating a contingency plan, understanding the role of petty cash, and analyzing financial data to identify areas for improvement. The assessment also explores the importance of accounting principles and concepts in financial management.

BSBFIM501
1

Table of Contents
Assessment Task 1.........................................................................................................................3
Task A.........................................................................................................................................3
Task B.........................................................................................................................................5
Assessment Task 2.........................................................................................................................6
Task A.........................................................................................................................................6
Task B.........................................................................................................................................7
Assessment Task 3.........................................................................................................................8
Part A..........................................................................................................................................8
Part B........................................................................................................................................11
Assessment Task 4.......................................................................................................................13
Task A.......................................................................................................................................13
Task B.......................................................................................................................................15
Task C.......................................................................................................................................17
Task D.......................................................................................................................................19
Task E.......................................................................................................................................20
References.....................................................................................................................................22
2

Assessment Task 1
Task A
Master Budget with profit projections
Big Red Bicycle Pty Ltd
Master Budget FY 2011/2012
REVENUE FY ($) Q1 ($) Q2 ($) Q3 ($) Q4 ($)
Commissions (2.5% Sales) 77500 17500 25000 17500 17500
Direct wages fixed 200000 50000 50000 50000 50000
Sales
310000
0 700000 1000000 700000 700000
Cost of Goods Sold 400000 100000 100000 100000 100000
Gross Profit
242250
0 532500 825000 532500 532500
EXPENSES
General and Administration Expenses
Accounting Fees 20000 5000 5000 5000 5000
Legal Fees 5000 1250 1250 1250 1250
Bank Charges 600 150 150 150 150
Office Supplies 5000 1250 1250 1250 1250
Postage and Printing 400 100 100 100 100
Dues and Subscription 500 125 125 125 125
Telephone [phone] 2500 2500
Repair and Maintenance 50000 12500 12500 12500 12500
Payroll tax 25000 6250 6250 6250 6250
Marketing Expenses
Advertising 200000 50000 50000 50000 50000
Employment Expenses
Superannuation 45000 11250 11250 11250 11250
Wages & Salaries 500000 125000 125000 125000 125000
Staff Amenties 20000 5000 5000 5000 5000
Occupancy Costs
Electricity cost 40000 10000 10000 10000 10000
Insurance 100000 25000 25000 25000 25000
Rates 100000 25000 25000 25000 25000
Rent 200000 50000 50000 50000 50000
Water 30000 7500 7500 7500 7500
Waste removal 50000 12500 12500 12500 12500
3

TOTAL EXPENSES
140150
0 350375 350375 350375 350375
NET PROFIT (BEFORE INTEREST &
TAX)
102100
0 182125 474625 182125 182125
Income Tax Expense (25% Net) 255250 45531.2
5
118656.
3
45531.2
5
45531.2
5
NET PROFIT AFTER TAX 765750 136594 355969 136594 136594
Sales Cost Centre
Sales Centre A
($)
Sales Centre B
($)
Sales Centre C
($)
Commission 30000 30000 30000
Wages 100000 100000 100000
Telephone [phone]
Office
Supplies 1000 1000 1000
The changes in the master budget are made as per the estimates of the sales. It could be seen that
the quarterly sale is 30% less than the Quarter 2 which needs to be considered while preparing
the budget. The increase in the commission is also to be considered while preparing the master
budget from 2% to 2.5%.
4

Task B
Contingency Plan
Company Name Big Red Bicycle Pty Ltd
Person Developing the plan
Name
John
Black Position Chief Financial Officer (CFO)
Risk Identified Liquidity Risk
Strategies/Activities to minimise the risk By When By Whom
Change in Price of the product to
increase demand Q2 Sales Manager
Minimising cost of Procurement of
material in order to decrease the cost of
sales Q3
Production Manager
Selling to the Existing customers along
with the offers Q2 Sales Manager
Execution of the plan quickly and
effectively Q2 Operations General Manager
5

Assessment Task 2
Task A
The overall objective of the company is to diversify the product line in order to minimize the risk
involved with the decrease in sales of one product. The company is also looking forward to
expanding their business and get the advantage of the reduced cost. The reduced cost will result
in increasing profit making the financial position and liquidity strong.
The budget can be defined as the estimate of various components such as sales, direct cost etc.
depending upon various factors surrounding the organisation and can affect them. The budget
can be divided into 4 Phases that are Preparing of the budget, Approving the budget, executing
the budget, evaluating the budget (Lander, 2018). The preparing of the budget is based on the
various estimates and thought at the basic level with the objective and the way to complete them.
There are various things which need to be considered while preparation of the budget being
expected revenues, expenses such as direct material, wages and salaries etc. It is important to
have proper approval for the budget that is being prepared so that acceptance of the same can be
at each and every level. The executing and evaluation of the budget is then important so that
there can be the effective achievement of the goals and objectives (Lander, 2018). There can be
an allocation of the resources available on the basis of the budget that is being prepared. The
tactics and strategy can be implemented as per the formation of the budget.
There are different types of the budget that can be prepared as per the requirement of the
organisation such as master budget, operational budget, cash flow budget, financial budget and
static budget. The master budget consists of all the aspect of the business being base to set the
objectives and goals of the organisation (Shpak, 2018). The master budget is also useful to
evaluate the overall performance of the business. Operational budgets are concerned with the day
to day activities consisting of revenues and expenses. The financial budget is more of concerned
with the expenditure and revenue that the company may earn or incur as well as the capital
expenditure. In case of the static budget, there are no changes as per the deviations in the sales
figure.
6

Task B
The petty cash consists of postage, small items of stationary, casual labour, window cleaning,
travel expenses, donations. The expenses which are made for private are not being considered in
the petty cash. It is important to have a record of the petty cash book in which there is a
recording of each and every transaction which can be considered at the time of Auditing. There
must be the proper preparation of the vouchers for each claim that has been made during the
period (Peavler, 2018). These petty expenses can be defined as the small expenses that are being
incurred during the year. The petty cash is listed in the current assets in the balance sheet. These
are also recorded under the head cash and cash equivalent in the larger companies. The petty
cash book is debited whereas the cash account is credited. The variance in the fund provided for
the petty cash book can be audited and any fraud or misstatement can be identified (Accounting
Tools, 2017). The reconciliation of each and every transaction can be done with the cash book so
that there can be no chances of theft or misconduct.
7

Assessment Task 3
Part A
Budgeted Report
Particulars Jan Fe
b
Ma
rch
Tot
al
(Q1
)
Ap
ril
Ma
y
Jun
e
Tot
al
(Q
2)
Jul
y
Au
g
Se
p
Tot
al
(Q
3)
Oct No
v
De
c
Tot
al
(Q4
)
Tot
al
Sales
revenue
25
00
00
32
00
00
34
78
00
917
800
32
00
00
30
00
00
42
00
00
1E
+0
6
37
00
00
23
00
00
30
00
00
90
00
00
32
00
00
40
00
00
35
00
00
107
000
0
392
780
0
Interest
Income
10
00
0
10
00
0
10
00
0
300
00
11
00
0
12
00
0
12
00
0
35
00
0
12
00
0
12
00
0
12
00
0
36
00
0
12
00
0
12
00
0
12
00
0
360
00
137
000
Other
Income
25
00
0
26
00
0
10
00
0
610
00
12
00
0
15
00
0
13
00
0
40
00
0
14
00
0
20
00
0
21
00
0
55
00
0
22
00
0
21
00
0
10
00
0
530
00
209
000
Total
Income
28
50
00
35
60
00
36
78
00
100
880
0
34
30
00
32
70
00
44
50
00
1E
+0
6
39
60
00
26
20
00
33
30
00
99
10
00
35
40
00
43
30
00
37
20
00
115
900
0
427
380
0
Cost of
goods sold
Material
Cost
70
00
0
90
00
0
95
00
0
255
000
80
00
0
12
50
00
90
00
0
29
50
00
70
00
0
80
00
0
90
00
0
24
00
00
12
00
00
80
00
0
95
00
0
295
000
108
500
0
Labour
Costs
60
00
0
70
00
0
75
00
0
205
000
65
00
0
90
00
0
72
00
0
22
70
00
55
00
0
60
00
0
75
00
0
19
00
00
92
00
0
60
00
0
71
00
0
223
000
845
000
Overheads
Incurred
35
00
0
35
00
0
35
00
0
105
000
40
00
0
45
00
0
25
00
0
11
00
00
25
00
0
25
00
0
25
00
0
75
00
0
36
00
0
40
00
0
31
00
0
107
000
397
000
Gross Profit 12
00
00
16
10
00
16
28
00
443
800
15
80
00
67
00
0
25
80
00
48
30
00
24
60
00
97
00
0
14
30
00
48
60
00
10
60
00
25
30
00
17
50
00
534
000
194
680
0
Expenses:
Advertising 10
00
0
10
00
0
10
00
0
300
00
10
00
0
10
00
0
10
00
0
30
00
0
10
00
0
10
00
0
10
00
0
30
00
0
10
00
0
10
00
0
10
00
0
300
00
120
000
Bank
Service
Charges
50
00
40
00
30
00
120
00
40
00
51
00
40
00
13
10
0
34
00
33
00
20
00
87
00
40
00
30
00
20
00
900
0
428
00
Installation
of
equipment
70
00
700
0
80
00
80
00
11
00
0
11
00
0
35
00
350
0
295
00
Interest on
debt
80
00
80
00
80
00
240
00
80
00
80
00
80
00
24
00
0
80
00
80
00
80
00
24
00
0
80
00
80
00
80
00
240
00
960
00
Office
Supplies
22
00
0
21
00
0
20
00
0
630
00
19
00
0
20
00
0
21
00
0
60
00
0
25
00
0
18
00
0
19
00
0
62
00
0
20
00
0
21
00
0
22
00
0
630
00
248
000
8

Payroll
Taxes
20
00
20
00
20
00
600
0
20
00
20
00
20
00
60
00
20
00
20
00
20
00
60
00
20
00
20
00
20
00
600
0
240
00
Printing 50
00
50
00
50
00
150
00
50
00
50
00
50
00
15
00
0
50
00
50
00
50
00
15
00
0
50
00
50
00
50
00
150
00
600
00
Professiona
l Fees
15
00
0
14
00
0
10
00
0
390
00
11
00
0
12
00
0
13
00
0
36
00
0
10
00
0
12
00
0
13
00
0
35
00
0
15
00
0
14
00
0
13
50
0
425
00
152
500
Telephone
expenses
35
00
35
00
35
00
105
00
35
00
35
00
35
00
10
50
0
35
00
35
00
35
00
10
50
0
35
00
35
00
35
00
105
00
420
00
Vehicle
expense
12
00
0
10
00
0
11
00
0
330
00
12
00
0
10
00
0
11
00
0
33
00
0
12
00
0
10
00
0
11
00
0
33
00
0
12
00
0
10
00
0
11
00
0
330
00
132
000
Total
expenses
89
50
0
77
50
0
72
50
0
239
500
74
50
0
83
60
0
77
50
0
23
56
00
78
90
0
82
80
0
73
50
0
23
52
00
83
00
0
76
50
0
77
00
0
236
500
946
800
Net Profit
before taxes
30
50
0
83
50
0
90
30
0
204
300
83
50
0
-
16
60
0
18
05
00
24
74
00
16
71
00
14
20
0
69
50
0
25
08
00
23
00
0
17
65
00
98
00
0
297
500
100
000
0
Variance Report
Particula
rs
Ja
n
Fe
b
M
ar
ch
To
tal
(Q
1)
A
pr
il
M
ay
Ju
ne
To
tal
(Q
2)
Jul
y
A
ug
Se
p
To
tal
(Q
3)
O
ct
N
ov
D
ec
To
tal
(Q
4)
To
tal
Ac
tu
al
Va
ria
nc
e
%V
ari
anc
e
Sales
revenue
25
00
00
32
00
00
34
78
00
91
78
00
32
00
00
30
00
00
42
00
00
1E
+0
6
37
00
00
23
00
00
30
00
00
90
00
00
32
00
00
40
00
00
35
00
00
10
70
00
0
39
27
80
0
40
00
00
0
72
20
0
1.8
4
Interest
Income
10
00
0
10
00
0
10
00
0
30
00
0
11
00
0
12
00
0
12
00
0
35
00
0
12
00
0
12
00
0
12
00
0
36
00
0
12
00
0
12
00
0
12
00
0
36
00
0
13
70
00
14
00
00
30
00
2.1
9
Other
Income
25
00
0
26
00
0
10
00
0
61
00
0
12
00
0
15
00
0
13
00
0
40
00
0
14
00
0
20
00
0
21
00
0
55
00
0
22
00
0
21
00
0
10
00
0
53
00
0
20
90
00
20
00
00
-
90
00
-
4.3
1
Total
Income
28
50
00
35
60
00
36
78
00
10
08
80
0
34
30
00
32
70
00
44
50
00
1E
+0
6
39
60
00
26
20
00
33
30
00
99
10
00
35
40
00
43
30
00
37
20
00
11
59
00
0
42
73
80
0
43
40
00
0
66
20
0
1.5
5
Cost of
goods
sold
Material
Cost
70
00
0
90
00
0
95
00
0
25
50
00
80
00
0
12
50
00
90
00
0
29
50
00
70
00
0
80
00
0
90
00
0
24
00
00
12
00
00
80
00
0
95
00
0
29
50
00
10
85
00
0
11
00
00
0
15
00
0
1.3
8
Labour
Costs
60
00
0
70
00
0
75
00
0
20
50
00
65
00
0
90
00
0
72
00
0
22
70
00
55
00
0
60
00
0
75
00
0
19
00
00
92
00
0
60
00
0
71
00
0
22
30
00
84
50
00
89
00
00
45
00
0
5.3
3
Overhea 35 35 35 10 40 45 25 11 25 25 25 75 36 40 31 10 39 40 30 0.7
9

ds
Incurred
00
0
00
0
00
0
50
00
00
0
00
0
00
0
00
00
00
0
00
0
00
0
00
0
00
0
00
0
00
0
70
00
70
00
00
00
00 6
Gross
Profit
12
00
00
16
10
00
16
28
00
44
38
00
15
80
00
67
00
0
25
80
00
48
30
00
24
60
00
97
00
0
14
30
00
48
60
00
10
60
00
25
30
00
17
50
00
53
40
00
19
46
80
0
19
50
00
0
32
00
0.1
6
Expenses
:
Advertisi
ng
10
00
0
10
00
0
10
00
0
30
00
0
10
00
0
10
00
0
10
00
0
30
00
0
10
00
0
10
00
0
10
00
0
30
00
0
10
00
0
10
00
0
10
00
0
30
00
0
12
00
00
13
00
00
10
00
0
8.3
3
Bank
Service
Charges
50
00
40
00
30
00
12
00
0
40
00
51
00
40
00
13
10
0
34
00
33
00
20
00
87
00
40
00
30
00
20
00
90
00
42
80
0
45
00
0
22
00
5.1
4
Installati
on of
equipme
nt
70
00
70
00
80
00
80
00
11
00
0
11
00
0
35
00
35
00
29
50
0
28
00
0
-
15
00
-
5.0
8
Interest
on debt
80
00
80
00
80
00
24
00
0
80
00
80
00
80
00
24
00
0
80
00
80
00
80
00
24
00
0
80
00
80
00
80
00
24
00
0
96
00
0
10
00
00
40
00
4.1
7
Office
Supplies
22
00
0
21
00
0
20
00
0
63
00
0
19
00
0
20
00
0
21
00
0
60
00
0
25
00
0
18
00
0
19
00
0
62
00
0
20
00
0
21
00
0
22
00
0
63
00
0
24
80
00
20
00
00
-
48
00
0
-
19.
35
Payroll
Taxes
20
00
20
00
20
00
60
00
20
00
20
00
20
00
60
00
20
00
20
00
20
00
60
00
20
00
20
00
20
00
60
00
24
00
0
20
00
0
-
40
00
-
16.
67
Printing 50
00
50
00
50
00
15
00
0
50
00
50
00
50
00
15
00
0
50
00
50
00
50
00
15
00
0
50
00
50
00
50
00
15
00
0
60
00
0
50
00
0
-
10
00
0
-
16.
67
Professi
onal
Fees
15
00
0
14
00
0
10
00
0
39
00
0
11
00
0
12
00
0
13
00
0
36
00
0
10
00
0
12
00
0
13
00
0
35
00
0
15
00
0
14
00
0
13
50
0
42
50
0
15
25
00
15
00
00
-
25
00
-
1.6
4
Telepho
ne
expense
s
35
00
35
00
35
00
10
50
0
35
00
35
00
35
00
10
50
0
35
00
35
00
35
00
10
50
0
35
00
35
00
35
00
10
50
0
42
00
0
40
00
0
-
20
00
-
4.7
6
Vehicle
expense
12
00
0
10
00
0
11
00
0
33
00
0
12
00
0
10
00
0
11
00
0
33
00
0
12
00
0
10
00
0
11
00
0
33
00
0
12
00
0
10
00
0
11
00
0
33
00
0
13
20
00
13
00
00
-
20
00
-
1.5
2
Total
expenses
89
50
0
77
50
0
72
50
0
23
95
00
74
50
0
83
60
0
77
50
0
23
56
00
78
90
0
82
80
0
73
50
0
23
52
00
83
00
0
76
50
0
77
00
0
23
65
00
94
68
00
89
30
00
-
53
80
0
-
5.6
8
Net
Profit
before
taxes
30
50
0
83
50
0
90
30
0
20
43
00
83
50
0
-
16
60
0
18
05
00
24
74
00
16
71
00
14
20
0
69
50
0
25
08
00
23
00
0
17
65
00
98
00
0
29
75
00
10
00
00
0
10
57
00
0
57
00
0
5.7
0
10

Part B
Revised contingency plan
Strategies/activities to minimize the risk By when By whom
Analyzing the quarterly variance report and
controlling the expenditure items while introducing
risk-free strategies
Quarter 1 John Black
Controlling the investment activities of the company Quarter 2 John Black
Implementing the sales training/coaching Quarter 3 Holly Burke
Introducing the incentive programs Quarter 1 Stuart Laroux
Controlling the cost of goods sold by employing
efficient labor
Quarter 1 Stuart Laroux
Reducing the overtime expenses Quarter 4 Charles Pierce
Contingency Implementation Plan:
Activity Monitoring activities and
date
Person
Analyzing the variances for
implementing effective control
over the operating expenses
Analysis of variance report:
Quarter 4
John Black
Quality check of the process
performed by employees and
monitoring while observing
Production report analysis:
Quarter 2
Holly Burke
Email for warning the
employees of risk for losing
the jobs
Analyzing the variance report:
Quarter 3
Pat Roberts
Reducing the overtime work
of employees and making
strict regulation for time
Analyzing the production
reports of the company:
Quarter 2
Pat Roberts
11

boundations
Scheduling training programs
frequently
Monitoring the variance
report: Quarter 3
Holly Burke
Employing more permanent
employees for the company
Production cost labor
worksheet of the company
evaluation: Quarter 4
Holly Burke
Recommendations:
The above contingency plan as revised for the purpose of reducing the wages and increasing the
profits will be concentrated on achieving the highest efficiency for the labor work performed by
employees in the manufacturing process. The roles and responsibilities will be segregated among
different managerial personnel according to the area of designation associated. This will help the
company in achieving optimum profitability and sustainability in the market.
12

Assessment Task 4
Task A
1.
Calculation of Debtor Days
Debtor Days = Debtor / (Sales/365)
= 362,500/ (2,900,000/365)
= 362,500/7945
= 45.62 Days
Calculation of Creditor Days
Cost of Sales = Opening Inventory + purchases – closing inventory
Cost of sales = 100,000 + 1,000,000 – 300,000
Creditor Days = Trade Creditors / (Cost of Sales/365)
= 800,000
= 80,000 / (800,000/365)
= 80000 / 2191.78
= 36.50 Days
Calculation of Average Stock turnover
13

Average Stock = (Opening stock + closing stock) / 2
Average stock = 200,000
Average stock turnover = Cost of Sales / Average stock
= 800,000 / 200,000
= 4
2.
The recommendation for the effective management of the cash flow is:-
a) There must be changes in the budget with respect to the debtor’s budget and steps must be
taken to reduce the time of receiving the money.
b) There must be effective management of the inventory to decrease the variable cost of the
company which may result in an increase in profit.
3.
The three sources used for the completion of the activity are:-
a) Ageing Debtor budget
b) Scenario Information
c) Statement of financial performance
14

Task B
1.
a.
Net profit before tax = Revenue – (Variable cost + Fixed Cost)
$1,000,000 = (Selling price per unit* Number of Units) – [(Variable cost per unit * Number of
Units) + Fixed Cost]
Suppose Number of Units = x
$1,000,000 = (500x) – (250x + $1,280,000)
$1,000,000 = 500x – 250x – 1,280,000
250x = $2,280,000
x = $2,280,000/250
x = 9120 Units
b.
Net profit before tax = Revenue – (Variable cost + Fixed Cost)
$1,000,000 = $4,000,000 – Variable cost – 1,280,000
Variable Cost = $4,000,000 – $1,000,000 – 1,280,000
Variable cost = $1,720,000
Variable cost per unit = $1720000/8000
= $215 per unit
15

2.
It is important for the organisation to manage the variable cost that is being incurred so that there
can be an increase in the profit margin of the company. It is important that to decrease the
variable cost the operational efficiency must be increased so that there can be full utilisation of
the resources that are available to them. The utilisation of the resources will help in minimising
the overhead cost thus reducing the overall variable cost of the company. The decrease in
variable cost will help the big red bicycle to achieve the objective of the company that is to earn
a net profit before tax of $1,000,000.
3.
The sources of information that would be required for the same are:-
a) Profit and Loss account
b) Cash flow statement
c) Business activity statement
16

Task C
1.
It is important to keep the records for 5 Years from the date of return filed (Australian Taxation
office, 2015). There are other situations also which will be considered for the purpose of
retaining the documents which are as follows:-
a) Deduction in the value
b) Acquiring or dispose of the asset and there are no chances of any capital gain or loss.
c) The documents must be kept until there is no resolution of any dispute which has arrived
(Australian Taxation office, 2015).
2.
BAS Form
G1 Total Budgeted Sales 600000
G2 Export sales 0
G3 other GST-free sales 0
G4 Input taxed Sales 0
G5 G2+G3+G4 0
G6 Total sales subject to GST (G1 minus
G5)
600000
G7 Adjustments (if applicable) 0
G8 Total sales subject to GST after
adjustments
600000
G9 GST on Sales 54545.5
G10 Capital Purchase 0
G11 Non-Capital purchase 0
G12 G10+G11 0
G13 Purchases for making input taxed
sales
109500
G14 Purchases without GST in the price 0
G15 Estimated purchases for private use
or not income tax deductible
0
17

G16 G13 + G14 + G15 109500
G17 Total purchases subject to GST (G12
minus G16)
-109500
G18 Adjustments (if applicable) 0
G19 Total purchases subject to GST after
adjustments (G17 + G18)
-109500
G20 GST on purchases (G19 divided by
eleven)
-9954.5
18

Task D
Action Plan
Activity Timeline Strategy/application of
policy
Person Policy
1 3 Days Assessing and forecasting of
factors surrounding the
organization
Top
Management
Planning
2 7 Days Preparation of the budget
based on the analysis
Top
Management
Planning
3 4 Days Review of the actual
performance and
comparing it with the
budget
Operational
Manager
Analysing
4 5 days In case of unfavorable
results finding out the
reason for deviation and
taking steps to overcome
the same or make changes
in the budget if required
Operational
Manager
controlling
19

Task E
1.
According to MissCPA, (2012) accounting principle and concept are as follows:-
a) Business Entity
b) Going Concern
c) Monetary Unit
d) Matching Concept
e) Accounting Period
f) Consistency
g) Materiality
h) Objectivity
i) Accrual
j) Historical Cost
k) Conservatism
2.)
Cash flow can be defined as the inflow and outflow of the money flowing in both the directions.
The cash flow statement is based on the actual transactions that are both inflow and outflow. It is
important to prepare the cash flow statement for better management of the resources that are
available (Murray, 2017).
20

3.
The financial statement comprises of the balance sheet, income and expenditure statement,
owner’s equity statement, cash flow statement, and notes to accounts. The ledger accounts
consist of the debit and credit balances which are then matched based on the transaction that is
being conducted during the particular year.
4.
The profit and loss account can be defined as the summary of the revenue that is being earned
during the particular year through operations, expenses that are incurred during the year. The
profit and loss account is used to determine the net profit earned from the activities carried out
during the year.
Reflection
I think the accounting principle is very much useful for the long-term growth and sustainability.
The accounting principle is useful in decision-making process with the help of principles such as
the control, relevance, compatibility etc. There can be effective monitoring of the business
activities which helps in the establishment of the control required for the achievement of the
objective. The flexibility in the system is useful in adapting any changes and takes advantages of
it or minimize the risk involved.
21

References
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at https://www.accountingtools.com/articles/what-is-the-cost-of-sales.html. [Accessed on
27/06/2018]
 Australian Taxation office, (2015). Keeping accurate GST records. Australian
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https://www.ato.gov.au/Business/GST/Accounting-for-GST-in-your-business/Keeping-
accurate-GST-records/. [Accessed on 27/06/2018]
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[Online]. Also available at
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http://smallbusiness.chron.com/4-phases-budget-cycle-71723.html. [Accessed on
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 Murray, J., (2017). Cash Flow - How It Works to Keep Your Business Afloat. The
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works-to-keep-your-business-afloat-398180. [Accessed on 27/06/2018]
 Peavler, R., (2018). How to Set Up and Manage a Petty Cash Account for Your Small
Business. The balance. [Online]. Also available at
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[Accessed on 27/06/2018]
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