ILM Level 5 Award in Leadership and Management
Unit 502 Making A Financial Case

Assignment
Assignment

This cover sheet must preface every assessment submission; it is a regulatory requirement that every assessment is authenticated as the work of the named learner. Any submission without this sheet being completed will not be marked or verified.

Centre Name | Dove Nest Group | Centre Number | 042814 | Learner Name | | Unit Covered in this Submission | 502 – Making A Financial Case | Date Submitted | | Statement of confirmation of authenticity By the act of making this submission, the learner certifies that this is the work of the learner named above. The work has not, in whole or in part, been knowingly presented elsewhere for assessment, or where assessment has been built on a previous assessment, this has been identified. Where materials have been used from other sources it has been properly acknowledged. If this statement is untrue, the learner acknowledges that an assessment offence has been committed. Attention is drawn to the plagiarism and cheating policies of both the centre and of ILM. Plagiarism can result in a learner being withdrawn from a qualification. | Permission for ILM to use this script ILM uses learners’ submissions – on an anonymous basis – for assessment standardisation. By submitting, both the centre and the learner agree that ILM may use this script on condition that identifying information is removed. However, if you are unwilling to allow ILM use this script, please refuse by ticking the box: □ |

TASKThe purpose of this unit is to develop understanding and ability to be able to make a financial case as required by a practising or potential middle manager.noteAn ILM Assessment Task provides an opportunity to relate your learning directly to your current organisation. It is recommended that you discuss the assignment with your line manager to explore and agree how the task could be used to support the needs of your employer (as well as evidencing your learning as part of completing your ILM qualification).The nominal word count for this assignment is 2500 words: The suggested range is between 2000 and 3000 words, however individuals have different writing styles, and there is no penalty if the word-count range is exceeded.Please Use the Headings Shown Below When Writing Up Your Assignment |

Understand financial concepts used to inform management decisions
Explain the differences between capital and revenue expenditure, using examples.

The difference between a Capital and revenue expenditure can be explained with the capital expenditure being a major investment, or the acquisition of an asset within our business on a long term basis for example a new delivery lorry or fork lift truck an expensive investment into the business it is also used for improvements on a long term basis..
Revenue expenditure is an amount that is expensed immediately on for example routine repairs or property maintenance so that it is still able to generate an income or revenue.
In our branch of Jewson we have put in for Capital Expense to buy in an extra fork lift for the yard which would involve a large amount of expenditure to us which realistically we couldn’t afford straight away. The reasons for the expenditure is to make our yard more efficient and therefore more profitable as a whole as it would mean we would be able to turn our lorries around quicker giving us more deliveries on the day with the current one fork lift that we have being insufficient. At Jewson we have to have a Cap Ex signed off by our area director with an explanation as to why and how and obviously the amount.

Explain how and why costs are classified, using examples.

Cost classification is shown with four different examples;
SEMI VARIABLE COSTS; which alternate between fixed and variable ie a fixed cost is rent ,
STEPPED COSTS; which include such expenditure required when stepping up production of an item which could entail acquisitions of more machinery to bring in more revenue
VARIABLE CASH; are the cost of such things as electricity or water rates anything that’s susceptible to rise or decrease depending on their consumption.
FIXED CASH.
In conclusion we use these four

Explain how costs are allocated, using examples.

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Be able to make a financial case to inform a management decision
Use a range of appropriate financial evaluation techniques to inform a management decision.

References