Questions

Describe how the management of assets is relevant to the following

1
business objectives.
Well management of assets will bring more
Business Profitability
profit to their business.
By having good performance in management
Business Growth of assets, their business growth will have
existed longer
When assets are being management well, the
providing quality products and company have enough capital to provide
services to customers brilliant quality product and services to
customer.
When all employees are adhering to codes of
Adhering to codes of conduct conduct will cause them to havea good
behaviour and manage the assets well
When a company chooses to incorporate
environmental sustainability in their processes,
it can affect stakeholders in variety of ways.
Adhering to environmental
Stakeholders should be on-board with
sustainability practices
company's dedication to environmental
sustainability, while maintaining a say in
company's future direction
Maintaining industry To ensure that industry remains focused on
accreditation schemes raising the standards of their practice
The state/condition of yielding a financial profit
Profitability or gain. It is often measured by price to
earnings proportion.

2 What is straight-line depreciation? Give an example.

straight line depreciation is default method used to gradually reduce the carrying amount of
stable asset over their useful life. Example: Pensive Corporation purchases Procrastinator Deluxe
machine for $60,000. It has an estimated salvage value of $10,000 & a useful life of five years.
Pensive calculates annual straight-line depreciation for machine as: Purchase cost of $60,000 –
estimated salvage value of $10,000 = Depreciable asset cost of $50,000 1 / 5-year useful life =
20% depreciation rate per year 20% depreciation rate x $50,000 depreciable asset cost = $10,000
annual depreciation

What is the diminishing method of depreciation and how does GST affect this
3 process?
Diminishing balance method of providing depreciation is important from accounting point of
view. In this method, accountant calculates depreciation on asset from which theydeduct all
previous depreciation from asset. So, every year amount of depreciation will gradually go down.
For example Suppose machinery purchasedat $ 50000 and if we fix 10 % depreciation on
machinery with diminishing balance method , then first year depreciation will $ 5000 , next year
will calculate depreciation $ 50000 - $ 5000 = $ 45000 X 10 % = $ 4500 Third year depreciation will
apply on $ 45000 - $ 4500 = $ 40500 The amount of depreciation is worked on the adjusted tax
value of the asset. This value is original cost less any depreciation already claimed in previous
years. If you are registered for GST, original cost price should not include GST you have already
claimed in your business. Depreciation is calculated on straight line the original cost price of asset,
& the same amount is claimed each year. If you are registered for GST, the cost excludes any GST
you have already claimed in your business. You do not have to use same depreciation method for
all your assets, but you must use whatever method you choose for an asset for full year. The
method used for asset can be changed from year to year.
4 Describe the features and benefits of the following finance methods
Finance lease is a type of lease where a finance
company is typically the legal owner of the asset for
duration of the lease, while the lessee not only has
Finance Lease
operating control over the asset, but also has a
substantial share of economic risks & returns from the
change in the valuation of the underlying asset.
A novated Lease is a vehicle lease agreement between
you, your employer & a finance company. Novated
Leasing is also known for car salary packaging or salary
Novated Lease
sacrifice. Entering to a Novated Lease means that your
employer agrees to pay your vehicle lease payments out
of your pre-tax salary
otherwise called contracting or letting, is an
understanding where an instalment is made for
Rent
transitory utilization of a decent, administration or
property possessed by another.
What is an 'Open-End Lease' A rental agreement that
obliges the lessee to make a balloon payment at the end
Operating Lease
of the lease agreement amounting to the difference
between the residual and fair market value of the asset
A product or service that has been bought by an
Purchase
individual or business.

What steps can you take to improve the environmental impact in

5
procurement within your organisation?
In this aggressive economic environment, doing what you have always done isnot
good sufficient anymore. Now more than ever, you are under pressure to include
costs while also producing results, even under the most challenging
circumstances. You need to be top in class& this might mean totally transforming
your procurement process or just improving the operation. To get most out of your
process, consider taking these five steps to making it even more better.
1. Take Social Responsibility Seriously Taking on green initiatives &take care
that your carbon footprint is as small as possible is no longer a refinement it
is a necessity. There is a reason that some of the large organizations have
gone green. Because consumers take environment impact & social
responsibility into concern when choosing which company to purchase
from.
2. Use Contract Management Your company could be working with dozens, if
not hundreds, of different vendors every year. There is no reason to do the
same work every time you onboard a new supplier. With contract
management & the use of standard patterns, you can bring down a lot of
wasted time and improve efficiency. Additionally, using standard contracts
can avoid the risk of failure being made & ensure that all important
 concepts & language are included in each & every contract. A contract
management system can also help you to keep track of your formal
documents, to ensure that your high standards are always being reach.
3. Automate Your Process Your manual procurement process might seem
business-like enough, but you won’t know the true efficiency until you use
automation. With the right e-procurement program, you can conduct
supplier research, collect data, gain greater visibility into your spend,
ensure your requirements are being reach, & ensure you are making the
best supplier choices for your organization. Such a program can also
streamline your process, making it is easier than ever to create contracts,
send payment, & track invoices & shipment in order to drive efficiencies.
4. Use Supplier Relationship Management Integrating supplier relationship
management into your procurement process, that can help you reap many
honours. A mutually beneficial relationship between your organization &
your best suppliers doesnot come without endeavour and hard work.
5. Continuously Look for New Opportunities for Improvement Finally, even at
their best, your procurement process won’t always be as fruitful as it is now.
You should never reach a point where you believe that cannot get any
better or need to change. You should review your process & the results you
get from it every few months to see if there are any opportunities for
improvement.
List 4 reasons why it is important to have internal checks and controls
5.1
when dealing with the acquisition of assets?
The reason isestablish protocols by creating internal controls, small business
owners establish protocols & procedures their staff & consultants must follow.
Small business owners inform their employees of these protocols & expect that
they follow them as they perform their day-to-day work duties. These established
protocols help bring order & cohesiveness to companies, as everyone knows
what's expected, as outlined in the internal controls. Second, prevent fraud & theft.
Establishing internal controls can help companies prevent or reduce fraud & theft
within their organizations. Internal controls can include activities such as
reconciling bank statements & internal audit reviews, which can uncover whether
the company's money is being misappropriated by management or employees.
Separation of Duties as the internal controls separate the duties employees have,
ensuring that there's a system of checks & balances. For example, a company's
internal controls might make sure that an employee who does the company's
accounts receivable doesn't also do the company's accounts payable. This can
also help reduce internal fraud & theft. Organize Information to Internal controls
can help your small business keep its financial & management information
organized. Organized data can increase productivity & better prepare your
business if you need to produce documents for litigation or if you need to grab
information for compliance reviews or audits. This might include giving each
employee his own password to access files & data on the company's computer or
creating a system for filing client data & financial documents, online or offline.
 Consider the following information:

John looks at a proposal to purchase a $900,000 stamping machine to

increase output. He determines the following information:
 The new machine can do 100 more units per hour
 The 4 workers currently doing the stamping can be replaced
 The units will be higher quality because they are more uniform

John calculates the selling price of the 100 units per hour multiplied by
the number of production hours per month, plus adding the 3% that
aren’t rejected due to the increased quality of the machine output vs.
manual stamping. He adds the monthly wages of the workers that are
6
no longer required & in the end you have a healthy benefit calculated.

John then calculates the monthly cost of the machine by dividing the
purchase price by 12 months per year & divides that by 10 years the
machine should last. The manufacturer’s specs state the power
consumption of the machine & John calculates the cost of that as well.
He subtracts the total cost figure from the total benefit figure & this
shows a healthy benefit calculated.
Consider the above example of cost benefit analysis. Do you think John
has done a good job in calculating the benefit of the machine? Has he
used the information at his disposal correctly? Why?

Instead of selling price, contribution margin per unit should considered of these
additional 100 more units per hour,

Depreciation has tax shield so tax shield of depreciation should also be

considered.

Time value of money is also need to be considered as the cash outflow will be
immediate but the benefit will be in future which has less value of money compare
to immediate cash flow

This time value will be calculated based on cost of capital

7 Explain the following types of business assets

Assets which are purchased for long-term use & are
Fixed Asset not likely to be converted eaisly into cash, such as
land, buildings, & equipment.
A tangible asset is an asset that has a physical
form. Tangible assets include both fixed assets,
Tangible Asset
such as machinery, buildings & l&, & current assets,
such as inventory
An intangible asset is an asset that is not physical in
nature. Corporate intellectual property, including
Intangible Asset
items such as patents, trademarks, copyrights &
business methodologies.
Current Asset A current asset is cash & any other company asset
that will be turning to cash within one year from the
 date shown in the heading of the company's
balance sheet

Describe the following types of assets required by an operational CBD

8
restaurant that seats 50 patrons;
A building or edifice is a structure with a
roof & walls standing permanently in a
place, such as a house. Buildings serve
several needs of society – primarily as
shelter from weather, security, living
Buildings
space, privacy, to store belongings, & to
comfortably live and work. As a
restaurant building a physical division of
the human habitat a place of comfort
and safety to having food
The point of sales is the time & place
where a retail transaction is completed.
At the point of sale, merchant calculates
the amount owed by the customer,
indicates that amount, may prepare an
invoice for the customer, & indicates the
POS Systems options for the customer to make
payment. It is also the point at which
customer makes a payment to merchant
in exchange for goods or after provision
of a service. After receiving payment,
merchant may issue a receipt for the
transaction
the set of articles or physical resources
serving to equip a person or thing: such
Equipment
as the implements used in a restaurant
or activity.
Artworks and other decor add a little
Fixtures and Large Fittings
something extra to the ambience
The stores area is a highly regulated
area, due to the frequency of deliveries
coming in and going out to other
departments. All of the equipment used
there needs to be well looked after and
Delivery Vehicle
regularly checked forfaults. Forklifts and
pallet trucks need to be in good working
order, otherwise the store persons can’t
use the pallet racking they installed last
year

Describe a scenario where a vessel would be an appropriate asset in

9 the hospitality, tourism or event organisation – including the basic
requirements the vessel would have.
A vessel decorate tomuseum is an institution that cares for (conserves) a
collection of artifacts & other objects of artistic, cultural, historical, or scientific
importance. Many public museums make these items available for their public
viewing through exhibits that may be permanent or temporary

Describe a scenario where a garden would be an appropriate asset in

10 the hospitality, tourism or event organisation – including the basic
requirements the garden would have.
Every garden will vary, depending upon the site & community who work in it. The
site will have a micro-climate that needs to be understood & managed. The very
basic considerations for site include the slope, solar access,& water. The
gardeners will have choices about the way they want to garden & when. The
formation & growth of the plant can visit by other.

Describe a scenario where a pool would be an appropriate asset in the

11 hospitality, tourism or event organisation – including the basic
requirements the pool would have.
If have pool can let customer burns those calories. Swimming is one of the most
effective ways to burn calories. A gentle swim can burn over 200 calories in just
half an hour, more than double that of walking. And a faster swim would see that
indulgent chocolate bar gone quicker than if you went running or cycling.

Describe a scenario where a rides and games would be an appropriate

12 asset in the hospitality, tourism or event organisation – including the
basic requirements the rides and games would have.
De-stresses and relaxes. Whether it’s work stressing you out, the kids being a
nightmare, or just life in general, we all get times we just want to SCREAM. Well,
help is at hand. Have a ride or games can lower stress levels, reduce anxiety and
depression, and improve your sleep patterns.

Describe the maintenance requirements for the following physical

13
assets
 Carry out regular preventive maintenance on every
temperature controlling equipment.
 Employ best practice is to eliminate leakage of
Cool Room
refrigerant into the environment during installation,
maintenance & decommissioning of refrigeration
equipment.
 Some hoods may have an old-fashioned
disposable filter, a fabric type of grease filter,
Cooking Hood Filters
instead of metal grease filter. When such filter is
saturated with grease, you need to replace it.
 Annual inspectionsby a competent person involve
Fire protection inspecting every fire extinguisher & identifying
equipment those which require repressurising, replacement
parts, or have reached the end of their useful lives.

15 Describe the 4 main data sets that you must access when estimating
the cost of asset acquisition, where you would access them, and why
 they are important.
Data Set Location Reasons
(at least 2 per data set) (at least 2 per data set)
Machinery and Science and Engineering can be save the costs
Equipment Equipment
Licensed Vehicles General Automobile Less the problem
Land Improvements Fencing Reduce the program
Machinery and Computer Equipment Can be save the costs
Equipment

1 List 6 main considerations you must take into account when deciding
6 on long-term physical assets for the business. Explain each one in
detail.
1) Building
2) Accounting
3) Tangible assets
4) Land
5) Furniture
6) Machinery

The term ‘business assets’ is used to describe all manner of assets utilised in
various industries, &includes machinery, mobile equipment & vehicles. Outdated
or redundant machinery & other assets not only occupy valuable storage space,
but also ties up funds which could be put to better use elsewhere. Machinery &
other business assets, allowing you to free up both space and money. Machinery
& Business Assets was the original activity, by having machinery the selling of
assets takes a variety of forms, from traditional methods to more modern ones.
Many important production processes require speed &accuracy levels that human
workers wielding manual tools cannot deliver. The economics of some production
processes don’t work out without automated machines. Other processes are
dangerous. Others still are complicated to be carried out by hand. The lack of
affordable machines to fill these demand voids in developing world has meant that
entrepreneurs having ideas of products or services affected by the above-listed
factors remain dreamers, unable to realize their ideas & contribute to the growth of
their countries. At the same time, manufacturers in countries exploit this by
flooding the markets with their goods, in many cases without any competition.
Therefore, to Africa’s escape from poverty & dependence is development &
deployment of affordable modern production machines and systems to the
producers out there in the field. A way needs to be found to help ordinary people
adopt modern production machines &practices & abandon crude manual
techniques that do not scale.