Credit Control Answers
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- Category: Other
- Date Submitted: 02/17/2015 03:30 AM
- Pages: 6
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CBT Sample assessment model answers
Cash Management (CSHM)
Sample assessment 1
Task 1
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Task 2
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Task 2 (continued)
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Task 3
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Task 4
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Task 5
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Task 5 (continued)
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Task 6
Cash sales (6% adverse)
Possible reasons
• More customers taking advantage of credit terms
• There could have been a decrease in sales volume or a reduction in selling price
• Inaccurate forecasting
• Depending on the product sales could have been affected by economic or environmental factors
Possible actions
• If sales volumes have deceased then improvements may need to be made to the product
• Better marketing strategies to improve sales volume
• If prices have been permanently discounted then revise future budgets accordingly
Credit sales (7% favourable)
Possible reasons
• Increased credit sales leading to increased receipts
• Improved credit control procedures
Possible actions
• If sales volumes have not improved then it is possible that the favourable variance in this period will result in an adverse variance in subsequent periods and therefore future budgets should take this into consideration
Wages and salaries (5.05% favourable)
Possible reasons
• If sales volumes are falling then direct wages may fall if manufacturing is reduced
• Less overtime may have been needed during the period
• There may have been a reduction in staff due to natural wastage or leavers which have reduced the payroll costs for the period
Possible actions
• If there has been a reduction in manufacturing or staff levels and this is expected to continue then future budgets will need to be adjusted accordingly
• If production levels have remained constant and have been accomplished without the need for overtime then identify any changes in production processes that have enabled this and...
CBT Sample assessment model answers
Cash Management (CSHM)
Sample assessment 1
Task 1
[pic]
Task 2
[pic]
Task 2 (continued)
[pic]
Task 3
[pic]
[pic]
[pic]
Task 4
[pic]
Task 5
[pic]
Task 5 (continued)
[pic]
Task 6
Cash sales (6% adverse)
Possible reasons
• More customers taking advantage of credit terms
• There could have been a decrease in sales volume or a reduction in selling price
• Inaccurate forecasting
• Depending on the product sales could have been affected by economic or environmental factors
Possible actions
• If sales volumes have deceased then improvements may need to be made to the product
• Better marketing strategies to improve sales volume
• If prices have been permanently discounted then revise future budgets accordingly
Credit sales (7% favourable)
Possible reasons
• Increased credit sales leading to increased receipts
• Improved credit control procedures
Possible actions
• If sales volumes have not improved then it is possible that the favourable variance in this period will result in an adverse variance in subsequent periods and therefore future budgets should take this into consideration
Wages and salaries (5.05% favourable)
Possible reasons
• If sales volumes are falling then direct wages may fall if manufacturing is reduced
• Less overtime may have been needed during the period
• There may have been a reduction in staff due to natural wastage or leavers which have reduced the payroll costs for the period
Possible actions
• If there has been a reduction in manufacturing or staff levels and this is expected to continue then future budgets will need to be adjusted accordingly
• If production levels have remained constant and have been accomplished without the need for overtime then identify any changes in production processes that have enabled this and...