Level 3 Diploma in Business Management – Finance in Business Assignment : Recording, Reporting, and Financial Decision Making

Level 3 Diploma in Business Management

Unit Aims

The aim of this unit is to provide learners with the fundamental knowledge required to record financial transactions and produce financial statements.  Learners will develop an awareness of different finance and accounting techniques such as the double entry accounting system, budgeting and investment appraisal.  This will enable learners to effectively record financial transactions and produce accounting statements.

Learning Outcomes and Assessment Criteria 

Assignment Brief

Task 1 of 4 – Assessment Criteria 1.1, 1.2, 1.3, 1.4 and 1.5 are assessed in this task.

 Instructions

Write a 500 word report which;

• explains three reasons why a business would keep financial records
• explains two reasons why a business uses business accounting
• explains three different types of accounting and finance statements
• explains the accounting requirements of two different types of business and
• lists different types of finance at different stages in the growth of a business.

Task 2 of 4 – Assessment Criteria 2.1, 2.2, 2.3 and 2.4 are assessed in this task.

 Instructions

Using a set of financial data from either a business you are familiar with or a case study presented by your teacher;

• produce a record of transactions using the double entry system
• reconcile these transactions based on the business’ bank statements
• develop a set of control accounts for the business’ accounts payable and accounts receivable and
• make any necessary corrections which you identify in the data.

Task 3 of 4 – Assessment Criteria 3.1, 3.2, 3.3 and 3.4 are assessed in this task.

Instructions

 Produce a 300 word essay which;

• explains how the same business from task 2 would use absorption costing and marginal costing as part of its decision making process
• explains how the same business uses budgets to support financial planning and control and
• explains two appropriate investment appraisal techniques which the same business could use to determine which new production equipment to invest in.

Task 4 of 4 – Assessment Criteria 4.1, 4.2, 4.3 and 4.4 are assessed in this task.

Instructions

using the same financial data from task 2;

• produce accurate absorption and marginal costing statements and
• calculate sub and overall variances.

using a new set of financial data for the same business;

• prepare accurate and subsidiary budgets

apply the two investment appraisal techniques from task 3 to a set of financial data relating to the purchase of new production equipment.

Note: To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the standards specified by all assessment criteria.

Answer

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