Bsbinm601 Manage Knowledge And Information Assignment Answers

Evidence of the ability to:

-source and analyse information for business decisions including:

identifying business problems and issues and related knowledge and data requirements confirming the clear and relevant objectives for analysis of information applying statistical analysis, sensitivity analysis and other techniques to draw conclusions relevant to decisions ensuring sufficient valid and reliable information or evidence is available to support decisions using formal and informal networks to source information not held in formal systems identifying and accessing sources of reliable information.

-using technology as appropriate

-consultation with stakeholders and specialists

-contribute information and the outcomes of analysis to decision making

-disseminate information to relevant groups and individuals including:

documenting information and updating databases meeting identified needs of recipients adhering to legal and organisational requirements for privacy and security developing and implementing communication plans

-design, test and adjust information systems to meet needs and objectives including:

Answer to question no-1

Financial accounting is the field of accounting which accompanied with the summary, analysis, reporting of financial transactions pertaining to the business organization.  This financial accounting is the most pivotal practice to prepare the financial statement of company.  On the other hand, management accounting is the concept or process system which is used by the management to make pertaining management decisions. It is accompanied with the devising planning, performance management and analysis the imperative accounting decisions to make the effective business management decision.

There are several differences between the management accounting and financial accounting which are given as below.

Management accounting	Financial management accounting
It provides information and data to people within the organization such as managers, accountants and employees for the assistance of their works.	The financial accounting is the process to share the data of company with its shareholders and outside stakeholders. It is ideally used to prepare the annual report and ultimately assist investors to make the effective financial decision.
Management accounting is the independent business process which assists in undertaking the effective business decision within the organization.	The financial accounting is required by laws, regulations, and standards.
Management accounting covers details of only within the organization such as recording of financial data and interpretation of the business decisions.	The financial accounting covers all the internal and external data and also assists investors to take their investment decisions in effective manner.
Management accounting is considered as branch of accounting that deals with the primarily with confidential financial reports for the exclusive use of top management within an organization	The financial accounting focuses on production units, cost associated with the process and implemented business decision which will assists in undertaking the proper financial decisions.

In simple words, the management accounting focuses on the utilizing the specific statistical records and data to arrive at the certain particular monetary value which are used by management to make the effective decision. On the other hand, financial decision focuses on the financial transactions and events such as profitability, liquidity and solvency of company which will assist managers to lower down the financial risk and increase the profitability of the business (Pempel, and Tsunekawa,., 2015).

Answer to question no-2

There are several accounting groups which are given as below

Total Assets- It is the total amount of assets which shows the amount of investment made by company in its business resources.

Total Liabilities= It is the total liabilities of company which need to be paid within the given time manner.

Outstanding payment- It is the amount of payment which company will pay and recorded as liability.

Bad debts- It is the account which records all the amount went for the bad debts.

Interest expenses- It is the amount of expenses shown in the profit and loss account.

Answer to question no-3

The statement of financial performance shows the company’s financial performance over a specified accounting period. It is assessed by given a summary of the financial performance in terms of profit and loss and balance sheet of company.

The statement of financial position is often called as statement that reports the assets, liabilities and equity of company on the particular date (Laudon,. and Laudon,., 2016).

Answer to question no-4

Financial statement performance- Quarterly report of expenses and cost will be determined as statement of financial performance.  It is shown as expenses and cost of the business on the particular financial position.

Financial statement positon- It is the statement position which reflects assets, liabilities and equity capital of company. Balance Sheet will be the statement of financial position.

Answer to question no-5

The main primary role of ATO and Treasury is to effectively manage and shape the tax and superannuation system to support and funding services for Australian people. The ATO and Treasury jointly work together.

Answer to question no-6

As per the ATO criteria there are four requirement of business records have been identified which are given as below.

• Governing all the documents such as constitutions and trust deed.
• Keeping the cash book records
• Records of payment withheld for the specified Australian Business number
• Records to help and prepare the tax statements and return.

Answer to question no-7

Bank rate in Australia on 1988= 22.88%

Bank rate in Australia in 2018= 6.75%

It is analyzed that the origin country is also same.

Answer to question no-8

There are main 3 exports of the Australia which are given as below.

• Agriculture product- particularly wheat and wool,
• Minerals such as iron ore and gold, and energy
• Gas- liquefied natural gas and Coal (Damodaran, A., 2016).

Case Study- A

Answer to question no-1

Income statement- It is the statement which reflects the profit and expenses of company for the particular time period (Otley, 2011).

[OZ furniture Pty Ltd]		Income Statement
For the Quarter Ending [June, 31st  2012]
Revenue		April	May	June
	Sales revenue	$          250,000.00	$          270,000.00	$             290,000.00
	(Less sales returns and allowances)
	Products revenue	$          250,000.00	$          270,000.00	$             290,000.00
	Interest revenue
	Other revenue
Total Revenues		$     250,000.00	$     270,000.00	$        290,000.00
			[42]
Expenses
	Advertising	$             5,000.00	$             5,500.00	$                 6,050.00
	Bad debt
	Cost of goods sold	$          125,000.00	$          135,000.00	$             145,000.00
	Depreciation	$             5,000.00	$             5,000.00	$                 5,000.00
	Employee benefits
	Furniture and equipment		$             8,000.00
	Insurance
	Interest expense	$             3,000.00	$             2,500.00	$                 2,250.00
	Maintenance and repairs
	Office supplies
	Payroll taxes
	Rent
	Research and development
	Salaries and wages	$           80,000.00	$           80,000.00	$               80,000.00
	Sales Commission	$                       -	$             1,000.00	$                 2,000.00
	Other Expenses	$           25,000.00	$           25,000.00	$               25,000.00
Total Expenses		$     243,000.00	$     262,000.00	$        265,300.00
	Net Income Before Taxes	$             7,000.00	$             8,000.00	$               24,700.00
	Income tax expense	$             2,100.00	$             2,400.00	$                 7,410.00
Income from Continuing Operations		$         4,900.00	$         5,600.00	$           17,290.00
	{42}		[42]
Below-the-Line Items
	Income from discontinued operations
	Effect of accounting changes
	Extraordinary items
Net Income		$         4,900.00	$         5,600.00	$           17,290.00

Answer to question no-2

The net profit in May is AUD $ 5600

Revenue		May
	Sales revenue	$      270,000.00
	(Less sales returns and allowances)
	Products revenue	$      270,000.00
	Interest revenue
	Other revenue
Total Revenues		$ 270,000.00
		[42]
Expenses
	Advertising	$         5,500.00
	Bad debt
	Cost of goods sold	$      135,000.00
	Depreciation	$         5,000.00
	Employee benefits
	Furniture and equipment	$         8,000.00
	Insurance
	Interest expense	$         2,500.00
	Maintenance and repairs
	Office supplies
	Payroll taxes
	Rent
	Research and development
	Salaries and wages	$        80,000.00
	Sales Commission	$        13,500.00
	Other Expenses	$        25,000.00
Total Expenses		$ 262,000.00
	Net Income Before Taxes	$         8,000.00
	Income tax expense	$         2,400.00
Income from Continuing Operations		$     5,600.00
	{42}	[42]
Below-the-Line Items
	Income from discontinued operations
	Effect of accounting changes
	Extraordinary items
Net Income		$     5,600.00

Case study B

Project Variance Report of Victoria Pty Ltd: It shows the variance in the sales and other items and % of variance in all the items have been shown in % and amount as well.

Project Variance Report of Victoria Pty Ltd:
Particular	Budget Amount (AUD $)	Actual Amount (AUD $)	Variance in Amount	Variance in %	Favorable and Un Favorable
Sales	750000	825000	75000	10%	Favorable
Direct Material	390000	410000	20000	5%	Favorable
Lab our Cost	295000	280000	-15000	-5%	Unfavorable
Cost of goods sold	685000	690000	5000	1%	Favorable
Contribution	65000	135000	70000	108%	Favorable
Overhead	45000	55000	10000	22%	Favorable
Rent and taxes	9000	10000	1000	11%	Favorable
Electricity	1000	1200	200	20%	Favorable
Motor Vehicle (Depreciation)	11000	12000	1000	9%	Favorable
Total Fixed Expenses	66000	78200	12200	18%	Favorable
Net profit	-1000	56800	57800	578%	Favorable

Case study C

Sales price Variances

It is the variance which is calculated by using the actual and estimated sales of the Company.

Project Variance Report of Company Pty Ltd:
Particular	Budget Amount	Actual Amount	Variance in Amount	Variance in %	Favorable and Un Favorable
Sales	10000000	9225000	-775000	-8%	Favorable

Sales Volume variance

It is volume analysis in which actual and estimated sales volume of company is determined.

Project Sales Volume Variance Report of Company Pty Ltd:
Particular	Budget Amount (Quantity)	Actual  (Quantity)	Variance in Amount	Variance in %	Favorable and Un Favorable
Sales	250	225	-25	-10%	Favorable

Possible causes of these variances

There are several causes which resulted to the variance of the sales volume of company.

• Change in market external market factor such as demand of the clients.
• Increased possible costing and charges in the business.
• Changes in ramified needs of clients and their perceptions.

Activity-3 (Obtain information on the management of knowledge & information)

Answer to question no-1

This above given is the organizational chart which reflects the flow of information and decision undertaken work system. It will assist organization to implement the proper strategic decisions and implement the effective work system in organization (Gordon, and Narayanan., 2016). 

Answer to question no-2

The organization will follow the decentralized business decision process in which all the decisions will be followed by company.  The name of organization would be Cosmos Company. This company will have objective to provide the best quality cafeteria services at very low cost. At the top management, promoter and key managerial persons will take the decisions. After that tactical decisions will be taken by the key managerial persons and line managers. After that staff members will implement the taken decisions to achieve the certain goals and objectives.

Answer to question no-3

The main problem in the business will arise due to the increasing complexity of the business and less effective communication pro In order to implement the effective communication and flow of information, company needs to follow the cyber computing enterprises resources planning. It is the online dashboard mechanism which assists in setting up online communication channel for employees and managers at large. It will establish the linkage among employees (Chenhall, and Morris, 2016).

Answer to question no-4

Identified problem/issue

It is analyzed that the main problem which company will face would be related to increased complexity and less structured work program. This will record the work process double and also increase the work burden.  It is analyzed that the undertaken work program will eventually increase the overall cost of business and lower down the efficiency of business in long run. Cosmos could use online cyber computing system to lower down the complexity and establish eh effective communication channel. Therefore, it could be increase the overall outcomes and efficiency of business.

Answer to question no-5

Sensitivity analysis is used to analysis the undertaken work and associated factors which may positively and negatively impact the business. If Cosmos uses the online cyber computing system then it will eventually lower down the complexity and increase the efficiency of business.  This sensitivity analysis could be undertaken by using the proper capital budgeting technique such as NPV, IRR and profitability index. The sensitivity analysis assists in evaluating the internal and external factors of business (Alharbi, Sandhu, and Brown, 2015).

Activity- 4 (Analysis and management information system) 4

Answer to question no-1

List 4 methods of statistical data analysis

There are main four methods of statistical data which are used to analysis the management information system in business.

NPV- It is the also known as net present value method which is used to compute the difference between the present value of cash inflow and present value of cash outflow (Duca, Muellbauer, and Murphy, 2016).

Payback period- It is the period which is used to determine the time period involved to determine the time period required to collect the initial investment of company.

Profitability index- It is the profitability index which establish the relation between the present values of cash outflow and present value of cash inflow. It shows the ratio relation between both. More than 1 profitability ratio reflects the positive return output for the business.

IRR= the internal rate of return shows the required rate of return which company needs for its business.

Answer to question no-2

Particular	Weakness
NPV	If the NPV is positive then company should accept the project. In some of the cases, company may get confused whether the project should be accepted. Due to the sensitive factors, it might negatively impact the project viability.
IRR	Internal rate of return is the required return which may vary. It is hard to determine the exact rate of return for the business.  The wrong IRR may negatively impact the estimated amount of flow of cash.
Profitability index	The positive profitability index shows company should focuses on the increasing the amount of cash inflow if it want to positively accept the particular project.  In case of negative cash inflow, it may negatively impact the calculated amount.
Payback period	It is hard to determine the right payback time period which company will have for the payback initial investment. The wrong payback period may increase the overall initial investment cost of business.

Answer to question no-3

The management information system is the computerized database of financial information system which is organized and programmed in such a way that it produces consistent regular reports on operations for every management system.  It assists in easy flow of information in the process system of organization.  It is determined that in order to implement the effective strategic decision making , management information system will assist in implementing the effective strategic decisions making. The main role of MIS system is to make the easy flow of information in the business and increase the effectively of the work process system. The main reason to establish the MIS system in business is to set up the automation work process and increase the overall quality of work process in the value chain activities.

Answer to question no-4

Decision support systems

It is the system process which assists in taking the strategic decisions through the analytical work process. It is analyzed that if company takes decisions by using the online channels and dashboard mechanism then it will assist in proper analysis of the collected data. It is further observed that if Decision support system is started with the base methods in which data is stored and after that through the online system collected data is pulled for the better and effective decision making.

Executive information systems

It is the system process that facilitates support senior management executives to make their decisions making. This analytical system process assists in implementing the strategic work process decision which assists in maintaining the effective decisions.  This system provides access to internal and external information process which is relevant to organization goals and objectives.

Office automation system

It is the type of system which establishes automation in the business process and assists organization to lower down the complexity of its work process. It is the varied computer machinery and software used to digitally create electronic transfer and set up automated system process.

Answer to question no-5

These three systems could be used in Cosmos Company to make effective use of resources and lower down the complexity of work process.

At the top management department, decision support system will assist in collecting the required amount of data from several sources. It also assists in implementing the effective work system which will lower down the complexity and strengthen the work process system. Company needs to focuses on setting up proper automation in the process work chain. In addition to this, executive support system assist in setting up proper work chain and communication process among employees who result to achieving the set objectives and goals in determined approach.

Office automation system is also used to implement the proper work channel which assists in implementing the effective strategic decision making in all the process work of organization.

Answer to question no-6

There are several advantages which can be obtained using MIS

• Establishment of automation in the work process.
• Assistance to make the effective strategic decision making.
• Implementation of proper work process and setting up automated work program.

Answer to question no-7

There are several criteria that should be taken into consideration when judging the reliability of the information.

• Data should have been collected from the reliable sources
• There are proper supporting documents to support the collected data.
• Use of data mining and proper strategic program while using the data support program

Answer to question no-8

It is analyzed that collected data should be validity and reliable. The main practical example which could be undertaken to make the bifurcation of reliable and validity of collected. For instance, if the data has been collected before 6 months then the same data could not be used at present for the effective decisions making. The information collected data should be used at the particular time. Organization invested AUD $ 20, 00,000 million capital in Human resources management on the basis of last two year data. It reflected that company is having high employee turnover. However, at present company have zero employee turnovers. IT was the loss making decision taken by company on the basis of past year data. On the other hand, reliability of data is based on the sources. Every information should be supported by the proper references and in text citation (Otley., 2016).

Answer to question no-9

The confidentiality is the critical part of the business success. It is analyzed that company needs to adopt proper work channel and security system. For this, organization could use online mechanism and securities software’s. For instance, company could give proper user ID and password to every employees for their work. It will set up online work channel and provide data safety program from the ill-intentioned persons. Proper work program and strengthen work policy should be undertaken to prepare the organization policy and program.

Answer to question no-10

Security measures are the key methods which could be undertaken to make the effective safeguard program in value chain activities of organization. There are following security measures that can be taken in relation to safeguard OSS and MIS (Albugmi, Walters, and Wills, 2016).

• Installing anti-virus software program
• Hiring of IT team to protect the process system of organization to make the positive work safety program.
• Lower down the complexity and provide the encrypted work devices in communication support system.
• Strengthen the work process and security measures work system process.

Activity- 5 (Analysis and management information system)

Answer to question no-1

It is analyzed that there should be proper bifurcation of reliable and validity of collected. For instance, if the data has been collected then the same should be used after considering the situational factors and effective decisions making. The reliability of data is based on the sources used such as references and in-text citation used for the research. On the other hand, validity of collected data is used to identity the proper research methods and case study analysis (Alharbi, Sandhu, and Brown,  2015).

Answer to question no-2

There are several reliable sources which could be used to make the decision making

• Use of journal articles and practice work program
• Collecting data from the employees by using the sample survey and monkey survey.
• Use of case study and past information.
• Using online dashboard mechanism to pull the historical data. (Alharbi, and Sandhu,  2017).
• Use of library and universities books to collect the statistical data

Answer to question no-3

With the ramified economic changes, technologies are playing pivotal role in collecting and communicating the reliable information. It is assessed that technological system process assists in managing the work effectively and use the proper data analytical program. It will assists in lower down the complexity and strengthen the effectiveness of the undertaken decision (Huang,  Henfridsson, Liu, and Newell, 2017).

Answer to question no-4

There are several factors which needs to be undertaken while disseminate the information such as use of reliable sources, considering the fact that whether the data is disseminate to right person or not and undertake the proper securities measures (Benbasat, and Barki, 2007).

Answer to question no-5

The decision making is done by the top management department who uses the past information to make the long term decisions in organization. It is observed that the set code of conduct and proper hierarchy process is used by Cosmos while making the effective decision making. The online dashboard mechanism and work process system assists in implementing the strategic decision making and increasing the overall outcomes of the business (Briscoe, Carroll, and Watson, 2016).

Answer to question no-6

The communication strategy is to use the online cyber computing dashboard mechanism which is used to set up proper work channel. Employees could easily communicate with each other’s through their unique user id. In addition to this, proper meeting and seminars will also be conducted to make the intervention of employees in the decision making process (Gibbard, et al., 2010).

Answer to question no-7

Cosmos Company could use the annual report to make the business transparent to employees. The shareholders will take their parts by participating in the meeting and seminars. On the other hand, employees will participate through the training and development program (Jünemann, et al.  2014).

 Answer to question no-8

The storage and retrieval system in workplace is accompanied with the cyber system and security program. However, only the top management could access these information and other persons will be given user name and password to make the effective decisions (Ugur,., 2010).

Activity- 6 (Analysis and management information system)

Executive summary 

The CEO of Wentworth institute needs to undertake the proper management information system which could be used in Melbourne branch.  It is analyzed that management information system and strategic business management programs are the key major part for the business success of organization.

Introduction 

In this report, several business activities and management information system have been assessed to evaluate the internal and external business functions of organization. It is required to collect the information regarding the location and complexity of the MIS system in university campus.

Competitive analysis 

This analysis reflects that many of the universities such as Laurent and oxford are using the online MIS and EIS system in their library support program for the better understanding of students. It will strengthen the work process system and also increase the overall outcomes of the business. Wentworth Institute should adopt new MIS system if it wants to beat the other rivals in market.

Environmental analysis 

With the ramified challenges and economic growth, each and every organization needs to take proper strategic plans and management information system process to run the business effectively (Greenan, , Plank,  and Wylie,  2010).

The Environmental analysis is undertaken to assess the PESTLE factors of business.

Political- The political part of the Melbourne is stable which shows that Wentworth Institute could make its strategic decisions on the basis of collected data.

Social- Students and teachers are more inclined towards using the MIS system due to its easy to handle and increasing effective work program system.

Environmental- Wentworth Institute could easily this online dashboard mechanism to communicate the wide range of data to its students and staff members. However, the environment of Melbourne is so positive which reflects positive indicator for the future growth of Wentworth Institute.

Legal factors- There is less compliance in Melbourne for setting up new online system procedure. It is assessed that company needs to comply with online work channel and data privacy policy while installing new MIS system.

Economical- The increasing GDP Rate and increasing purchasing power shows that Wentworth Institute could easily increase its overall investment in installing new MIS system in its university campus.

Technological- with the changes in technologies, it is required to set up new MIS system procedure in business which will strengthen the work process of organization.

Location analysis

It is analyzed that Wentworth Institute should be less worried about the online work process which eventually add value for the student’s learning and reduce the complexity of the staffs. However, Melbourne hub campus will be the best location to set up the headquarter in Melbourne.

The main recommendation for setting up new MIS system in Melbourne is related to reliability and validity of data. This data should be collected from the reliable sources and used efficiently.

Information system

Wentworth Institute has been using the financial management system in its work process to facilities the strategic and financial decision making. However, in Melbourne, Wentworth Institute could use MIS due to its increased use and benefits available for the newly set up program.

The MIS system could easily increase the overall productivity and efficiency of business as it will set up online work program and implement the proper strategic program. This MIS system will assist Wentworth Institute to create synergy in work process and increase the overall productivity of the business of Wentworth Institute.

The main type of technologies which is needed for Wentworth Institute is Management information system which will establish the automation in work process. The main budget which will be required to set up this online work management system is around AUD $ 2, 00,000. It will be the cost for the digital development of app and sites.

The main contingency plan which could be undertaken by Wentworth Institute is hiring expert IT members who could take proper strategic decisions in business. They will evaluate all the IT problems and issues for installing new MIS system in work place.

Policies and procedure

The main policy and procedure is to set up organization policy program and code of conduct. All the staff and students needs to comply with the confidential laws and data privacy rules to strengthen the work policy program. It will ensure the policy work program and increase the overall effectiveness of the work system process.

Wentworth Institute also needs to use the security system procedures and anti-virus software program to increase the overall security system of university. It will assist in strengthen the confidentiality of the collected data.

Recommendation 

Wentworth Institutes should adopt the MIS System in its Melbourne system program. It will not only establish the automation but also assist Wentworth Institute to lower down its cost of its business services system.  It should also hire more IT experts to increase the overall IT strategic program. .

Conclusion 

After analyzing all the details, competitive analysis and environmental factors analysis of Melbourne city , it could be inferred that Wentworth Institute should invest its capital in installation of new MIS system. It will not only increase the overall effectiveness of work but also strengthen the automated work system of organization.

References

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