Ebio enterprise living map

Contribute to create work as venture opportunities and repeat the process (26 credits).

Apply the budget function in a business unit (13941)

Specific Outcome

Assessment criteria

Ebio Competency Programme: Information and Examples

Organize and Review your competencies

Continuously become aware, gain access, engage and have budgets made with experts in family, community, professionals and institutions.

Biz/ed: Budgets

SO 1

Explain the concept of budgeting in a business unit.

J. Welch (Chap. 12: 189-204): Budgeting

AC 1.1

The concept of a budget is explained with reference to income and expenditure in relation to a specific business unit.

AC 1.2

The items that make up gross revenue are identified for a specific business unit.

AC 1.3

The items that make up expenditure in a business unit budget are listed with reference to cost of sales and cash outflows.

AC 1.4

The budgeting technique appropriate to the type of budget is explained with reference to the purpose of the budget.

AC 1.5

The relationship between the selected budgeting technique and the organisation's budgeting requirements is explained for a specific organisation.

SO 2

Analyse the budget needs of a business unit.

AC 2.1

The budget needs are identified against the business plan of the business unit.

AC 2.2

The implications of the identified budgeting needs of a business unit are explained with reference to management expenses and economic viability.

AC 2.3

Past budgets of a business unit are analysed to forecast budget needs.

AC 2.4

The concept of a zero based budget is applied in order to prepare a budget proposal.

AC 2.5

A budget breakdown is prepared for a business unit with reference to planned activities and estimated costs.

AC 2.6

The estimated costs of a budget breakdown are substantiated and an indication is given of how the required figure was calculated.

AC 2.7

Project timeframes for income and expenditure are estimated for a specific business unit activity.

AC 2.8

Internal and external constraints on a budget are identified with reference to planned activities, available resources, market size and unpredictable changes.

SO 3

Present and justify a proposed budget for a business unit.

AC 3.1

Proposed activities are presented and substantiated in terms of cost benefit returns.

AC 3.2

The budgeted amounts for the proposed activities are justified in terms of research, rational projections and previous experience.

SO 4

Monitor and control actual expenses and revenue against projected expenses and revenue.

AC 4.1

An existing system is used to ensure budget items are recorded correctly.

AC 4.2

A variance report is analysed and corrective measures are proposed to address the situation.

AC 4.3

Feedback on the budgetary situation of a business unit is provided with reference to variance, actions taken to correct any variance and notable trends.

AC 4.4

Past experience relating to income and costs is used to project future activities and make changes to a current budget.

AC 4.5

Control systems are proposed to monitor and control revenue and expenses.