SITXFIN005 Manage Physical Assets

This assessment for SITXFIN005 Manage Physical Assets at Stanley College includes a project, knowledge questions, and a written test. It covers topics such as asset acquisition, maintenance, depreciation, and environmental sustainability.

Manage Physical Assets
Assessment 1 - Project
Assessment 2 – Knowledge Questions
Assessment 3 – Written Test

CONTENTS
ASSESSMENT COVER SHEET............................................................................................................................3
Student Agreement:............................................................................................................................................3
Student Declaration:...........................................................................................................................................3
Due Dates for Assessment:.................................................................................................................................3
ASSESSMENT OUTCOME....................................................................................................................................5
Student Feedback:...............................................................................................................................................5
ASSESSMENT OUTLINE .....................................................................................................................................6
Student assessment guide and evidence.............................................................................................................6
ASSESSMENT 1 – PROJECT ................................................................................................................................7
ASSESSMENT 2 – KNOWLEDGE QUESTIONS...............................................................................................15
ASSESSMENT 3 – WRITTEN TEST...................................................................................................................22
Trainer Confirmation:.......................................................................................................................................22

ASSESSMENT COVER SHEET
This Assessment Cover Sheet outlines the rules that govern all assessments at Stanley College. This
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accepted for marking/review without a completed and signed Assessment Cover Sheet.
Student Name: Student ID:
Trainer Name: Group ID:
Student Email Address:
Unit of Competence: SITXFIN005 - Manage physical
assets
Student Agreement:
By signing this Agreement, I confirm that I have read the Assessment Submission Guidelines, as detailed in the
Student Handbook and/or my Course Study Guide (provided as part of my enrolment and available via the
Stanley College website). In particular:
• The work submitted is my own and does not contain another’s persons material represented in
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right to appeal within 30 working days of receiving a result. This can be done with my trainer or a
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Student Declaration:
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assessment is entirely my own and meets all of the School’s assessment requirements.
Student Signature: Date:
Due Dates for Assessment:
Please confirm your due dates for this specific assessment here with your trainer:
Assessment 1 Project Due Date:
Assessment 2 Knowledge Questions Due Date:
Assessment 3 Written Test Due Date:

ASSESSMENT OUTCOME
Assessment One (1):
Outcome
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Assessment Two (2):
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Assessment Three (3):
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Trainer’s Feedback:
Trainer’s Name:
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ASSESSMENT OUTLINE
Student assessment guide and evidence
This assessment requires you to develop, implement and monitor a maintenance program and
coordinate the acquisition of physical assets.
This will be done through the following:
● Research and apply findings to create proposals to develop a plan for the acquisition,
maintenance and replacement of 3 different types of physical assets.
● Demonstrate procedures to regularly monitor the assets using reports and feedback and
develop and maintain a current register for the assets
● Demonstrate required knowledge required through questioning in addition to a written test
under exam conditions.
Background Information
You are the General Manager for Kalao Restaurant and are aware that there are some items that
need to be purchased. There is a petty cash float of $150 available for small purchases, however
anything over this amount is required to be presented in a written proposal to the owner of Kalao
for approval prior to purchase. Any purchases over the value of $1000 need to have finance options
available in order to assist the owner with their method of acquisition.

ASSESSMENT 1 – PROJECT
Task 1: Develop a Physical Asset Register
The assets in the table below have been highlighted to you as either needing replaced or purchased.
Using the template provided, develop a physical asset register for ten assets listed below:
COMPUTER SYSTEMS EQUIPMENT FIXTURES GARDENS
POS System Cool Room Portable gas heaters
Administration computer(s) Combi Oven Large feature plants
Ice machine Decking
Glasswasher Water feature
Coffee machine
Industrial Microwave
Where known, indicate the depreciation method used. Ask the finance, accounts or maintenance
managers for assistance if necessary.
Asset Register
Template
Completed Asset
Register
(Insert as an object here)
Task 2: Proposal Research
After evaluating the register, you are required to select one asset from each category that you intend
to purchase for Kalao. (These 3 assets will be the focus for the remainder of the Assessment).
You are required to research each of the assets and provide 3 realistic industry quotes for each item.
You will use this research to assist you in creating the proposal that you put forward to Kalao’s
owner for final purchase approval.
Insert your quotes in the relevant boxes below:
Asset Quote 1 Quote 2 Quote 3
Example: POS System
Insert PDF of quote received /
evidence of cost from
published or advertised prices
Insert PDF of quote received /
evidence of cost from
published or advertised prices
Insert PDF of quote received /
evidence of cost from
published or advertised prices
Asset 1 = combi oven Sharp combi oven $ 249 Five star combi oven
$ 349.8
Rusell Hobbs
$ 108.9

Asset 2 = coffee machine Bosch Tassimo coffee
machine $ 29 Aerobie aeropress $ 14 Nescafe Dolsce $ 25
Asset 3 = ice machine Scotsman $ 15 Whirlpool $ 23 Maidaid $ 33

Task 3: Report
Prepare a report to submit to Kalao’s owner that outlines your reasoning for acquisition of each of
the 3 assets.
Your report should be clear and informative and include:
● The items you have chosen to purchase and why.
● Your recommendation to which of the 3 quotes is most suitable with supporting arguments.
● Accurate equipment specifications for each of the assets, including any relevant parameters
when developing the specification to help guide the acquisition process.
● Budget parameters
● Environmental sustainability policies for the business
● Floor plans
● Numbers and types of required equipment fixtures, fittings and furniture
● Operational performance requirements such as efficiency, customer traffic and staff usage
● Types of products and services offered by the business.
● How the asset could be acquired: purchase or a finance agreement.
● If a finance agreement, provide an overview of the type of agreement and important terms
and conditions; if purchasing, which method of depreciation is appropriate for the asset and
explain why.
● A breakdown of costs including:
● Any known additional costs such as extended warranties, interest, delivery, installation,
additional parts or safety equipment required.
● Details of any consultation processes with internal or external financial specialists, including
advice and recommendations.
Acquisition Proposal report
 The item which has been selected to purchase are Nescafe
coffee machine, Rusell Hobbs combi oven and Scotsman
ice machine. It has been choosen by the owner as it fits in
the budget aspects of Kalao’s owner.
 The Quote of coffee machine is most suitable for the owner
as it properly meets the budget set up by company. Also the

organizations producing these machines are reliable.
 Budget parameter which needs to be set up by the company
will be according to the benefits provided by combi oven,
ice cube machine and coffee machine. Also the money
spent on it is properly been utilized.
 The environmental sustainability policy for all the products
include that independent environmental auditing will be
don e for it. And also environmental awareness training and
education to the employees related to the use of machine
will be provided. Furthermore, company will be engaged in
effective communication with workers so that they will be
able to use it appropriately.
 Floor plans means that asking for finance for purchase of
certain goods. Owner can take help from various investors,
purchasers, family and friends.
 Fixture and fittings are mainly done for the furniture which
is movable. To place coffee machine, ice cube machine,
and combi oven three fittings will be done. Company will
require various tools to place and a man who can do it.
 Operational performance that will be required is staff
should be efficient enough to do it. They must be given
proper training and education related to the use of device.
Customer traffic will be managed by effectively
communicating with them. Also by solving their feedbacks
and drawbacks customer can be managed properly. Staff
usage will be done by placing right people at the right. Also
encouraging and motivating them will be beneficial for the
owner as well as owner of the company.
 The type of products and services which will be offered by
company will be fixtures and furniture’s. Also they will
sale product which is of high quality. They will be involved

in giving products like combi oven, ice cube machine, and
coffee machine. Other products related to it would also be
sold.
 The asset would be purchased from the shopkeeper. The
written down value method will best appropriated for it
because the yearly amount of depreciation which is charged
to the profit and loss account is nothing but the capital
expenditure, which was spent on the acquisition of the
Asset, being allocated to that specific accounting period
within the working life of the Asset.
 The additional cost which is been required related to
purchase of these assets are installation cost. It will add in
increase expense of the firm.
 Recommendation from financial specialist will also be
taken. It will offer solution to the problem which owner can
face while installing machines. They will also help in doing
external and internal analysis. Also the specialist will
provide with methods through which organization can save
a lot of cost. This will help them in growing and enhancing.
Task 4: Power Point Presentation
You have a meeting scheduled with the owner and finance officer. Create a short power point
presentation consolidating the information gathered in Task 3. Your presentation should last around
15 minutes and cover your proposal and supporting arguments/evidence as outlined in your report.
Acquisition Proposal
Power point
(Insert PPT as an object h

Task 5: Monitoring and maintenance
The owner granted approval for acquisition of the 3 assets based on the information you provided.
You are now required to create procedures to monitor, record and report on each.
Complete the following exercises to create your maintenance program:
Asset Maintenance Plan
Develop an asset maintenance plan for the three assets based on maintenance policies and
procedures, and the needs of each asset. Establish what type of maintenance program the business
currently uses (preventative, fix on fail, etc.)
● Include any statutory maintenance requirements.
● Include any internal or external auditing processes conducted on the work area or physical assets
in selected area.
● Integrate environmentally sustainable practices into the maintenance plan, where possible.
Asset Maintenance
Plan Template
Completed Asset
Maintenance Plan
(Insert as an object here)
Asset Maintenance Calender
Develop an asset maintenance calendar for either a calendar or financial year showing all planned
scheduled maintenance for your selected assets. You can use the template provided or create your
own.
The calendar must show maintenance to be completed at specific times of the year for a 12-month
period.
Asset Maintenance
Calendar Template
Completed Asset
Maintenance Calendar
(Insert as an object here)

Asset Maintenance Reporting Schedule
Establish maintenance and performance reporting practices to support the asset maintenance
program and ensure effective performance of all assets.
You are required to:
● Document the purpose of the report, when reports will be completed, by whom and who they
will be distributed to.
● If appropriate documents currently exist, indicate how they will support the maintenance
program and the information provided in them. Where necessary, develop templates for
maintenance requests or other reporting and recording techniques.
Asset Maintenance
Reporting Schedule
Template
Completed Asset
Maintenance Reporting
Schedule
(Insert as an object here)
Asset Tracking Template Completed Asset
Tracker
(Insert as an object here)

Feedback Log
Implement a procedure/template to capture and record customer and staff feedback.
Feedback Log Template
Feedback can be provided by customers as well as
employee. Owner of the firm can get recommendation from
consumer by properly communicating with them. Also
effective interaction with employees and customers can
help them in improvising the product and services offered
by them. They can enhance the quality of product by getting
feedback from consumers. This will also assist in building
relationship with customers and employees. Feedback log
can be filled with the information related to changes that
needs to be make in goods and services offered. Also the
what good points customer can feels about their product.
Effective communication can also help in building
relationship with customers and employees. This help in
making a good image of the firm. They can also get
feedback from telephonic interview. Company needs to
analyze the feedback log template on regular basis and
appropriate changes should be made according to that. It is
very necessary from firm to make use of these feedback. It
will help them in increasing the efficiency and also lay
impact on their growth. Feedback can also be get by
company by measuring consumer satisfaction. It will be
useful for the firm to make their product more efficient.
Q1. Outline how you will implement your reporting practices to ensure effective performance of physical
assets and integration with day-to-day condition reports.
To ensure effective performance of physical assets, asset management conceptual model will
be used. It will help in effectively managing and using the machinery part. Also company
will take charge to look upon how machines are been used by employees. They will make
sure that the machinery is been properly utilized. Also focus will be laid on environmental

sustainability plans by firm. They will special emphasis on their asset management so as to
gain competitive advantage. Also by properly utilizing assets their life expectancy will also
be increased. This help in increasing the efficiency of firm.
Q2. You have now implemented your asset maintenance plan. Discuss any issues or problems you identified
and what steps you took to resolve these issues.
Various problems were related while implementing asset management plan. Higher cost
were incurred for managing and taking care of assets. Also cost was also incurred to provide
training and education to employees in order to make them understand about how to tackle
the assets (Mosgrove and et.al.,2016). Setting budget was also one of the major problem that
raised while implementing asset management plan. Also keen protection was required for the
physical assets like machines due to the risk related to theft. In order to resolve these issues
environmental sustainability plans were been adhered. Also many software were been
installed in order to manage and maintain things
Q3. What changes would you make to your asset maintenance plan based on the problems addressed during
the implementation process?
The changes that will be made while implementing asset management plan would be that all
the task and activities will be plan according to the budget set. Also company will try to
efficiently utilize the resources, so as to gain competitive advantage. They will also take help
from financial a specialist so that the budget set can maximize the efficiency of firm to
perform. They will also adhere various policies related to environmental sustainability policy.
To reduce the cost and increase efficiency customer traffic will also be managed by the firm.
This will help in resolving issues.
ASSESSMENT 2 – KNOWLEDGE QUESTIONS
Q1: Computer systems, equipment and gardens are examples of types of physical assets. List another 5 that
would be required by tourism, hospitality and event organisations.
The other equipment that can be required by tourism, hospitality and event organizations are:
1) Telephone
Coffee machine
Water coolers
Fan/Ac’s
Calculators

Q2: What are three business objectives when managing physical assets? Briefly explain how an asset
maintenance program supports each one.
1) Three business objectives that will be made by firm in order to manage physical assets are as
follows:
Firm will be involved in developing the ability to demonstrate coherent and
sustainable planning and investment decision(Teece, 2011). s. It will help them in
effectively managing the physical assets.
 Also owner of the company will be involved in demonstrating evidence of controlled
processes to meet legal, regulatory and statutory requirements alongside strong
returns on investment. This will also assist them in managing resources effectively.
This will lead to competitive advantage.
 Organization will also engage in managing and assessing risk. It is very important for
the firm to assess risk in order to gain competitive advantage. Improved risk and
opportunity management with corporate governance and clear audit trails
Q3: What are three types of information that could be included in an asset register?
The asset register can include the following information. It comprises of following:
Cost- It is very important for the firm to know write about the every detail related to the cost
of product.
Purchase date: Firm should also have evidence about the date of purchase of product.
Depreciation method- The physical asset will be depreciated based on which method will also
be noted down on asset maintenance register. It can help firm in getting completive
advantage. This can increase the firm efficiency to perform. Also it will help in increasing the
efficiency of firm. Firm will make use of written down value method.
Q4: Explain what is meant by “depreciation.”
Depreciation is the method of reallocating the cost of asset after its usage. Firms are included
in depreciating assets for both tax related purpose and business purpose. It helps in knowing
the final price of assets. It is an important aspect of firm to depreciate its assets on yearly
basis

Q5: You have purchased a new coffee machine for $3400 on the 30th June. It has an expected life span of five
years. Calculate the depreciation amount and book value for each year using the prime cost and
diminishing value methods
Year
Prime cost method Di
m
in
is
hi
n
g
va
lu
e
m
et
h
o
d
Depreciation $ Book value $ Depreciation $ Book value $
0 $680 $3400 $680 $3400
1 $680 $3400 $544 $2720
2 $680 $3400 $435 $2176
3 $680 $3400 $348 $1741
4 $680 $3400 $278 $1393
5 $680 $3400 $223 $1115
Q6: What is one example of maintenance each of these types of equipment need?
Motorised vehicles For maintaining these type of vehicles, firm needs to make sure that they are
been used by a person that has effective training to use it. A fuel filter and oil checking is
must in an motorized vehicles. So that firm can make use of it for longer life. Also they can
make usage of its value.
Large and small electrical equipment : They need to be used according to the instructions given on
the manual. Also water should not be touched to the electrical equipments. This can help firm
in effectively utilizing it.

Glass and dishwashers - They should be used with proper care. Also they need to be clean them
on regular basis. So that healthy environment exists in the firm. Also company should keep
the environment hygienic in order to enhance healthy practices.
Refrigeration, cooling and heating equipment : This can be maintain by keeping it clean. Also the
instructions needs to be followed. It should be kept at proper at place. Also the refrigerator
needs to be take care on daily basis.
●
Q7: Give three examples of environmentally sustainable practices you can implement when acquiring and
maintaining a physical asset?
● Acquisition
The acquisition criteria that needs to be followed by company in order to maintain
environmental sustainability is that the firm should acquire only those assets that are
environment friendly. The asset acquire should cause less pollution(Teece, 2011)..
● Maintenance
- Physical asset should be maintain according to the instructions given in the
guidelines. Also proper training should be given to employees to maintain it
Q8: Explain how you determine your current or potential financial ability to acquire physical assets.
a) What questions should you ask?
How company have set budget in order to acquire financial assets.
What are your plans related to asset management
What environmental sustainability criteria company is going to follow.
Who do you communicate with? Communication will be done with the owner of the firm. Also

various guidelines will be provide to manage assets.

Q9. What type(s) of internal and external audits do you need to conduct in Kalao?
List at least three types of audits, what assets they are conducted on, when and why they are conducted.
Type of audit Assets affected When
conducted Why conducted
Financial audit Physical assets like
machinery
In the mid of
financial year
To know about what how company is
going to manage the physical asset by
keeping in mind financial aspects
Operational audit Services given by
company
At the end of
financial year
In order to know about the operational
efficiency of the firm.
Information
system audit
Software used by the
firm
In the mid of
financial year
To know about how the information
related to customer and employees are
maintained.
Q10: What factors affect when you schedule internal and external audits? Explain 2.
Factors affecting internal and external audit are:
If auditor do not posses appropriate knowledge than it can lay a great impact on the internal
and external audit.
Also if facts and terms are not communicated by auditor properly than ut can hamper the audit
process of firm.
Q11: Which reports did you find most useful when monitoring the performance of your selected assets? Briefly
explain why.
Asset register report is one of the most important resort while managing physical asset. This is
because it helps in knowing the date of purchase, cost of asset, depreciation method used. It
helps in increasing the efficiency of firm (Teece, 2011)
Q12. Describe the procedure used to record formal and informal customer and staff feedback about the
performance, usefulness or operation of physical assets in Kalao.
. Feedback can be received by firm through direct communicating with clients or customers.
They can also take feedback by creating their online websites. Telephonic conversation can
also be done by employees to know about the drawback of their product.
Q13: How does formal and informal feedback help you monitor performance and determine future asset needs?

. The formal feedback like taking it from online website has helped in knowing the demand
and need of customers. Also the informal feedback has supported in building relationship with
consumers that has enhanced the capacity of company.

Q14. List the features and benefits of different options for asset acquisition:
Finance option Features Benefit
Hire purchase The asset can be taken on low cost The firm can use asset on their
won.
Lease This method can be widely used
by firm
It creates relationship between
lesor and lesee
Purchase This is one of the simplest
method. Purchase can be made
directly with retailer or wholesaler
Personal touch is been there
Rent It is easy to obtain physical assets
on rent
At low price most precious
physical asset can be enjoyed
Answer the following questions in relation to your Assessment 1 research and findings:
Q13: How did you ensure the information researched about costs of acquisition for the three potential assets is
current, accurate and relevant?
The reliability can be test by knowing the satisfaction of consumer and also through the
employees feedback and clients feedback.
Q14: How would you negotiate purchase and financial arrangements with the supplier? What details would
you discuss, why and what could be the outcome of your discussions?
Before negotiating with suppliers it is essential for company to research about actual cost.
Individual is required to discover areas of mutual gain so that negotiation can give positive
results. Details that need to be discussed in negotiation are such as price, discount, quality of
material, delivery charges and time etc. By having discussion of these areas enterprise will be
able to get high quality material at affordable rate. This will help in offering low cost end
products to consumers.
Q15: What information about the acquisition process and the asset itself should you record and file for later
reference?
Details of fixed and operational assets, agreement terms, date of acquisition, market value of items at the time
of acquisition,

ASSESSMENT 3 – WRITTEN TEST
YOU WILL HAVE TO SIT A WRITTEN TEST (WEEK 5) FOR THIS SUBJECT
● You are required to answer all questions correctly.
● 90 min time plus 10 min reading time
● Please fill out and study the Short answers to be ready for the test
Trainer Confirmation:
Trainers please confirm students pass rate
Trainer Name: Completed Date: Pass Rate Attained (%)