Assessment 2 BSBADM409

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Assessment 2 BSBADM409

Assessment 2

BSBADM409

Co-ordinate Business Records

Café

Espresso Equipment

Today, no coffee shop is completely without espresso drinks. My customers won’t just want drip coffee — they’ll want lattes, espresso shots, americanos and cafe mochas. To provide these I will need an espresso machine, a device specifically designed to force hot water through espresso shots. Additional equipment includes a special grinder to grind espresso beans. Espresso grinding is a delicate procedure unlike grinding standard beans. A tamp will be needed to push the espresso into place and I will also need demitasse cups or shot glasses to hold the shots before I pour them into the drink. Metal jugs are often used to hold milk before, during and after steaming.

Coffee Equipment

The coffee brewers used in commercial coffee shops barely resemble the Mr. Coffee that I use at home. My business needs coffee brewers designed to make and store the large amounts of coffee that my customers will buy. Give my shop an extra touch of class with good coffee mugs for customers who want to drink their coffee in the shop. Grinders designed to grind large amounts of coffee will allow I to grind my coffee quickly, as well as sell it to customers who do not have a grinder at home.

Furniture

Some coffee shops are strictly “to-go” affairs. In this case I will need nothing other than counter space for preparing coffee. If I want people to sit down and enjoy coffee at my shop, I will need lots of comfortable seating and tables. Outdoor seating is popular at coffee shops, so having outdoor furniture can be as important as having indoor furniture.

Electrical and Plumbing Needs

While not “equipment,” strictly speaking, no coffee shop can open without being fitted for the right electrical and plumbing requirements. Espresso machines have special electrical needs more akin to a fridge or a stove than my coffee maker at home. Espresso machines must also be directly connected to a water source to fulfill their water needs. Drainage is also required. Water softeners in the water line will prevent mineral build up in the machines, one of the biggest sources of problems with espresso makers.

Budget

Allocation and Acquisition

As a small business owner, allocating costs through an accounting system is a necessary task. The process requires you to assign costs so that all components included in that cost are divided accordingly. Depending on the root cause of the cost, it can be allocated to one or multiple areas of the business. A number of reason exits for cost allocation.

Provides Accurate Cost

By allocating cost to the respective departments that used a particular resource, you’re able to show that the item associated with the cost had an input in the cost generation. Specifically, you can easily identify the amount spent on specific areas of the company. For example, if your human resources, accounting and customer service departments use the same computer system, you would spread the cost out for the computer system over all three departments. Accurate product cost information also enhances the quality of financial reporting and improves decision-making within the company.

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Assessment 2 BSBADM409
Last updated: Feb 2024

Page 1

on specific areas of the company. For example, if your human resources, accounting and customer service departments use the same computer system, you would spread the cost out for the computer system over all three departments. Accurate product cost information also enhances the quality of financial reporting and improves decision-making within the company.

Enhances Resource Usage

By assigning costs to specific departments, you may use those costs only to the point that their benefits supersede their cost. Specifically, when deciding whether to use a specific department’s resource, you would first consider the department’s fixed and variable costs. Depending on your business, fixed costs such as rent, insurance and salary of full-time employees generally stay constant. Variable costs rise directly in accordance to the level of sales in dollars or units sold, such as shipping charges, sales commissions and cost of goods sold. By allocating costs, you’re able to determine the extent that you can use company resources without negatively impacting cost.

Controls Limited Resources

By knowing how to use company resources and making it known that there are costs associated with those resources, you generally limit the demand for them. Specifically, if the resources were free, the demand for them likely would be greater than if you assigned a cost to them. For example, the production department controls a fixed asset, such as machinery or motor vehicles; however, demand outweighs supply. In this case, you may charge all the departments that use that fixed asset a cost, which enables you to balance demand with supply. This allocation has more to do with managing the demand than the actual cost for obtaining the asset.

Considerations

One of the best ways to understand cost allocation is to view it as a process that requires you to identify, aggregate and assign costs to cost objects. A cost object is an item or activity, such as a department or product, that requires you to separately weigh costs. The direct method is the most widely used alternative for allocating costs. For example, your accounting and payroll departments are the only divisions that hired employees during a particular month. After determining the total cost to human resources for hiring the respective employees for that month, you would allocate the specific percentages and flat dollar amounts of the total cost to the accounting and payroll departments.

Consultation

Consultation requirements have been expanded to engage all persons that may have an impact on the health and safety of persons associated or affected by a business or undertaking. Consultation is required between:

  • Duty holders with shared duties and
  • PCBUs and the workers impacted by the work activities or undertakings.
  • Consultation is required to be effective. It is expected that consultation be approached in a coordinated, co-operative and timely manner between all relevant duty holders and other parties. Consultation is essential when gathering information on all potential hazards, the associated risks and ways in which to eliminate or minimise those risks.Effective consultation will engage all persons in the workplace and can be utilised to increase understanding, awareness and commitment to health and safety in the workplace.The WHS legislation requires…

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    Assessment 2 BSBADM409
    Last updated: Feb 2024

    Page 2

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