Year 13
Unit 7 – Management Accounting
BTEC Business Level 3
Assessor name
Student name
Mr A Lingard
Date issued
Completion date
12th September 2014
28th November 2014
Qualification
Edexcel BTEC Business Level 3 Business
Submitted on
Unit number and title (Credit Value)
Unit 7 - Management Accounting
Assignment title
In this assessment you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.
Assignment title
The purpose of this assignment is to:
4 Be able to use budgetary techniques Budgets: master; sales; production; purchases; debtors; creditors;
cash; departmental (consolidation); standard costing; analysis of variances eg change of activity levels, costs
and prices; use of accounting and statistical information
Budgetary techniques: preparing and revising budgets (changes to costs and selling prices); use of budgets
for short-term target setting; monitoring (comparison of standard or budgeted costs with actual costs,
calculation and explanation of variances); control measures (decision making, taking action); reliability
(importance of accuracy, results of error, inaccurate assumptions); relationship between costs and
incomes at different activity levels; strengths and weaknesses of budgetary techniques
Scenario
You are working as a trainee small business manager at a branch of a national bank. One of your first tasks is to advise
a new business start-up under the supervision of your manager. This means that before you can advise the client your
work needs to be checked for accuracy by your line manager. Your task is to prepare a poster that explains to clients
the importance of setting and using accurate budgets
Sources of information
www.businessstudiesonline.co.uk, www.tutor2u.net, www.ttimes100.co.uk
Criteri
a
refere
nce
P5
To achieve the criteria the evidence must show
that
the student is able to:
P5 describe how budgets can be used to set targets, to
monitor and control an organisation.
Tas
k
no.
Expected
Evidence in
folder
Feedback
Learner declaration
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Learner signature:
Date:
This brief has been verified as being fit for purpose
Andrew Lingard
Assessor
Date
Signature
Internal verifier
Nicky Fosbrooke
Date
Signature
ACTION
Y/N
To be submitted
onononresubmitted
Final Grade
Points
3rd October 2014
Criteria
met
Y/N
Task 1:
Describe how budgets can be used to set targets, to monitor and control an organisation.
You now need to produce a poster that can be placed in the offices of small businesses that describes what
budgets are and why they are important for businesses. You need to ensure that in your poster you;
Describe how budgets can be used to set targets, to monitor and control an organisation. Explain why
variance analysis is important to a business and how this might help managers to make budgetary decisions.
To make sure that you achieve the criteria you need to cover the key terms associated with budgeting.
Advice from the specification:
For P5, learners will describe clearly the target-setting nature of preparing budgets and the subsequent
monitoring process involving comparing budgeted figures with actual figures. Learners will emphasise the
importance of calculating and analysing the variances, by trying to understand their likely causes. They will need
to describe how management action or decision making will follow in order to ensure budgetary control.