tourism

·

TASK a – Short answer

SECTION 1: ALLOCATE BUDGET RESOURCES

Q1: What is a budget and how does it help a business achieve its goals?

Satisfactory ☐ Unsatisfactory ☐

Q2: What determines how business funds are divided amongst different departments and projects?

Satisfactory ☐ Unsatisfactory ☐

Q3: What is the difference between a fixed (static) and flexible (variable) budget?

Satisfactory ☐ Unsatisfactory ☐

Q4: What is a cash flow budget and what is it used for?

Satisfactory ☐ Unsatisfactory ☐

Q5: What is a profit and loss budget and what is it used for?

Satisfactory ☐ Unsatisfactory ☐

Q6: What do the following terms mean?

Satisfactory ☐ Unsatisfactory ☐

Q7: What is a budget cycle?

Satisfactory ☐ Unsatisfactory ☐

Q8: What must you do when budget priorities are changed? Explain why.

Satisfactory ☐ Unsatisfactory ☐

Q9: Your budget allows only a limited amount of funding for wages. Who needs to know about these types of resource decisions? Explain why.

Satisfactory ☐ Unsatisfactory ☐

Q10: List two (2) ways you can promote awareness of the importance of budget control.

Satisfactory ☐ Unsatisfactory ☐

Q11: How does promoting the importance of budget control help you achieve team or work area goals?

Satisfactory ☐ Unsatisfactory ☐

Q12: Why is it important to record resource allocation?

Satisfactory ☐ Unsatisfactory ☐

Q13: Budgets are not the only source of information relating to where resources are allocated and controlled within a business. List four (4) other records used to show resource allocation.

Satisfactory ☐ Unsatisfactory ☐

SECTION 2: MONITOR FINANCIAL ACTIVITIES AGAINST BUDGET

Q14: Why do we record and compare actual performance figures with budgeted figures?

Satisfactory ☐ Unsatisfactory ☐

Q15: How often should you check actual income and expenditure figures against budgets?

Satisfactory ☐ Unsatisfactory ☐

Q16: List six (6) types of financial records you can use to check income and expenditure information.

Satisfactory ☐ Unsatisfactory ☐

Q17: What is one benefit of using computerised systems to maintain financial records?

Satisfactory ☐ Unsatisfactory ☐

Q18: What are financial commitments in a business?

Satisfactory ☐ Unsatisfactory ☐

Q19: List two (2) examples of financial commitments for a business in your industry sector.

Satisfactory ☐ Unsatisfactory ☐

Q20: There are four (4) basic types of expenses you need to record in financial documents to ensure accurate monitoring. Describe and give one example for each type.

Satisfactory ☐ Unsatisfactory ☐

Q21: What are the formulas used to calculate a budget variance and a budget variance percentage?

Satisfactory ☐ Unsatisfactory ☐

Q22: Check the figures in the sales budget below.

Which department’s figures have been calculated correctly?

Satisfactory ☐ Unsatisfactory ☐

Q23: Indicate if the following budget results are a favourable or unfavourable result.

Satisfactory ☐ Unsatisfactory ☐

Q24: What are the four (4) main reasons budget deviations occur?

Satisfactory ☐ Unsatisfactory ☐

Q25: What factors do you need to consider when deciding whether or not a budget deviation should be investigated further?

Satisfactory ☐ Unsatisfactory ☐

Q26: List three (3) options you might consider to help manage budget deviations effectively.

Satisfactory ☐ Unsatisfactory ☐

Q27: List four (4) types of information about budget targets you should discuss with staff members.

Satisfactory ☐ Unsatisfactory ☐

SECTION 3: IDENTIFY AND EVALUATE OPTIONS FOR IMPROVED BUDGET PERFORMANCE

Q28: How does trend analysis help identify areas for improvement in budget performance?

Satisfactory ☐ Unsatisfactory ☐

Q29: What are two (2) questions you should be asking when assessing existing costs and resources?

Satisfactory ☐ Unsatisfactory ☐

Q30: When identifying new approaches to budget management, who should you discuss desired budget outcomes with? Give a generic answer or name the appropriate job role/positions in your workplace or training environment.

Satisfactory ☐ Unsatisfactory ☐

Q31: What approaches or possible options can you investigate further to control and improve the management of expenses in a business?

Satisfactory ☐ Unsatisfactory ☐

Q32: What approaches or possible options can you investigate further to control and improve the management of payroll expenses in a business?

Satisfactory ☐ Unsatisfactory ☐

Q33: List three (3) approaches or possible options you can investigate further to control and improve the management of accounts payable in a business.

Satisfactory ☐ Unsatisfactory ☐

Q34: List three (3) main methods businesses use to increase their profits.

Satisfactory ☐ Unsatisfactory ☐

Q35: You want to make recommendations for improved budget management and set new budget targets. List two people (2) you should present your recommendations to.

Satisfactory ☐ Unsatisfactory ☐

Q36: The impact of any changes must be considered when developing new approaches or changes to budget management. List one potential benefit or disadvantage that may occur when implementing changes in the following areas.

Satisfactory ☐ Unsatisfactory ☐

Q37: How should you present your recommendations for improved budget management?

Satisfactory ☐ Unsatisfactory ☐

Q38: List three (3) examples of the type of information you should include when presenting or communicating about recommendations for budget management.

Satisfactory ☐ Unsatisfactory ☐

SECTION 4: COMPLETE FINANCIAL AND STATISTICAL REPORTS

Q39: What information might you need to include when preparing a statistical or financial report for the supervisors in a suburban hotel? List five examples.

Satisfactory ☐ Unsatisfactory ☐

Q40: What information might you need to include when preparing a formal statistical report for the management team of a large events or reception centre? List five examples.

Satisfactory ☐ Unsatisfactory ☐

Q41: How can you present reports to enable informed decision-making?

Satisfactory ☐ Unsatisfactory ☐

Q42: How do you know when to complete reports?

Satisfactory ☐ Unsatisfactory ☐

Q43: Explain how the features of accounting software programs can assist you to manage budgets.

Satisfactory ☐ Unsatisfactory ☐

Learner assessment guide and evidence

This assessment requires you to manage and report on budgets over a three-month period.

Create a customer profile.

· Use this profile to provide tailored products and services

You are required to do the following:

· Complete Case Studies 1, 2 and 3.

· Each case study has multiple tasks.

· Read the scenarios and answer the questions.

· Round all dollar values to the nearest whole number when calculating financial information; for example, $12.55 becomes $13, $18.22 becomes $18.

· Unless stated otherwise, round all percentages to one decimal point when calculating financial information; for example, 12.55% becomes $12.6%, 18.22% becomes 18.2%.

· All budget calculations can be completed manually or using accounting software or computer-based spreadsheet software, such as Microsoft Excel or Google Sheets.

Case study 1

The Jackson hotel has a bistro, two bars (public and sports), a drive-through and walk-in bottle shop and TAB situated beside the sports bar.

You are the manager of JJ’s Bistro. It seats 210 people and is open for lunch and dinner, seven days a week. The hotel promotes a family environment and has a playroom for younger children and an activity centre for pre-teens containing electronic and other games. These glass walled areas are within view of customers seated in the rear section of the bistro.

The hotel’s management team develop an operational budget for the business based on previous budgets, anticipated business and any special projects, such as renovations or new products. Each operational area within the hotel is given a departmental budget based on organisational goals and their anticipated revenue and expenses.

Budgets are developed on a quarterly basis. Each department has quarterly and monthly budget targets. Monthly budgets can be adjusted during a quarterly cycle if circumstances within the department change.

The following events have taken place during the April budget period.

· Prices for meat, fruit and vegetables have increased as a result of recent drought in some regions and floods or storms in others.

· Prices for many wines have fallen due to a surplus in the market.

· Beer prices have risen slightly, again due to the drought leading to shortages of ingredients and an increase in government taxes.

· A major wine supplier has been running an in-house promotional campaign, with staff product knowledge training provided to help increase sales.

· The bistro menu changes to the new winter menu on May 1st. Its introduction is being promoted in April throughout the hotel.

Task 1: Monitor budgets

Review the following budgets for the Jackson Hotel - June quarter. Answer all questions based on the contents and outcomes of the Jackson Hotel operational budget – June quarter.

Q1: List the hotel’s financial commitments under their correct cost category. Name at least two (2) commitments for each category

Satisfactory ☐ Unsatisfactory ☐

Q2: Name the top four (4) cost categories the business has allocated the most funds too in this budget period.

Satisfactory ☐ Unsatisfactory ☐

Q3: Why have significant funds been allocated to these categories?

Discuss their importance to the business and consequences if inadequate funds are allocated.

Satisfactory ☐ Unsatisfactory ☐

Q4: Review the Bistro departmental budget – April.

You are holding a team meeting to discuss the financial targets provided in the organisational and April bistro budgets.

What information do you need to communicate to the team to ensure they understand the targets and goals to be achieved?

Satisfactory ☐ Unsatisfactory ☐

Q5: What techniques can you use to promote awareness of methods of controlling costs or increasing sales so you can achieve budget targets?

Satisfactory ☐ Unsatisfactory ☐

Task 2: Calculate variances

Complete the comparative analysis report for the Bistro departmental budget – April on Page 24 by calculating all missing dollar value and percentage variances.

Complete the Favourable/Unfavourable column by indicating if the budget results are favourable (F) or unfavourable (UF) for the business.

SITXFIN003 – Assessment

Page|2

Page|1

Comparative analysis report

Bistro departmental budget – April

NOTE: Don’t forget to round your figures up or down to the nearest whole number.

SITXFIN003 – Assessment

Page|2

Task 3: Question and answer

Answer all questions based on the budget outcomes in the completed April budget comparative report in Task 2 and case study information.

Q1: Are there any significant variances in the sales figures that you should be concerned about? Explain what the results indicate and why you are/are not concerned about them.

Satisfactory ☐ Unsatisfactory ☐

Q2: Are there significant variances in any of the expenses categories that you think should be investigated further? If yes, discuss which categories and why you think they need investigation. If no, discuss why the deviations do not warrant investigation.

Satisfactory ☐ Unsatisfactory ☐

Q3: Based on your responses to questions 1 and 2, what is your overall evaluation of the budget results? Is the bistro meeting its financial targets?

Satisfactory ☐ Unsatisfactory ☐

Q4: Which expense category has the most funds allocated to it? Explain why it is important you manage costs in this category carefully.

Satisfactory ☐ Unsatisfactory ☐

Q5: Using the results and information obtained from the April comparative report, your answers to the previous questions and the background information, write a transcript of the outcomes of your report ready to deliver to the bistro staff at the next team meeting. The transcript should include the following information.

· The current status of the budget; is the work area meeting its budget targets, is it on track to meet June quarter budget targets?

· Which areas are underperforming or performing better than expected?

· What changes, if any, need to be made to help the team meet next month’s budget targets?

· An outline of budget targets for May.

Organisational factors that contributed to the setting of these targets.

Satisfactory ☐ Unsatisfactory ☐

Case study 2

JJ’s Bistro is located in Jackson’s hotel. It seats 210 people and is open for lunch and dinner, seven days a week. The hotel promotes a family environment and has a playroom for younger children and an activity centre for pre-teens containing electronic and other games. These glass-walled play areas are within view of customers seated in the rear section of the bistro.

The following events took place during the May budget period.

· Prices for meat, fruit and vegetables have increased as a result of recent drought in some regions and floods or storms in others.

· Prices for many wines have fallen due to a glut in the market.

· Beer prices have risen slightly, again due to the drought leading to shortages of ingredients and an increase in government taxes.

· Most utility companies increased prices by 7% at the start of May.

· The local police started a blitz on drink driving in the middle of May with increased police presence in local suburbs and roadside testing of drivers.

· In-house training was provided to key food and beverage staff in April by a coffee supplier. The aim is to increase sales and the quality of coffee served. The training was free of charge as part of a new preferred supplier contract with the coffee supplier.

· A major wine supplier has been running an in-house promotional campaign, with staff training provided to help increase product knowledge.

· The bistro menu changed to the new winter menu on 1 May 20XX. It was heavily promoted in May throughout the hotel and in local community newspapers.

·

Task 1: Interpret budget results

Review the following budgets for the Jackson Hotel - May.

Evaluate the budget outcomes and their impact on the operation and financial goals of the bistro.

Answer all questions based on the outcomes in the comparative analysis report, Bistro purchasing budget – May and the case study information.

Comparative analysis report

Bistro departmental budget – May

Bistro purchasing budget – May

SITXFIN003 – Assessment

Page|2

Page|1

Bistro labour budget – June quarter (don’t worry about this topic for now)

Bistro staffing levels

Glossary

SITXFIN003 – Assessment

Page|2

Q1: Discuss how the outcomes food and beverage sales and costs of sales indicated in the May comparative analysis report impact the bistro area and the business overall. Consider the types of deviation (positive or negative) and size of the deviations in food, beverage and total sales and cost of sales categories.

Satisfactory ☐ Unsatisfactory ☐

Q2: What are two possible explanations for the deviations in food costs and beverage costs? Consider information provided in the May purchasing budget as well as the comparative report and case study information.

Satisfactory ☐ Unsatisfactory ☐

Q3: When preparing the budgets, the hotel forecasted food costs as 36.7% of food sales and beverage costs as 29.1% of beverage sales.

Is the bistro meeting organisational goals for cost of sales? What is the difference between the budget target and actual results?

Satisfactory ☐ Unsatisfactory ☐

Q4: Should these deviations be reported to management? Explain why/why not.

Satisfactory ☐ Unsatisfactory ☐

Q5: Based on the May purchasing budget, in what categories are the largest food and beverage cost deviations occurring?

Satisfactory ☐ Unsatisfactory ☐

Task 2: Investigate option to improve performance

The food and beverage manager is very concerned about the food and beverage purchasing and cost of sales results. They want the bistro team to make it a priority to meet budget targets for cost of sales in June. Management then plan to reduce budget allocations for food and beverage purchases in the September quarter budget. It is an organisational goal to reduce cost of sales to below the current percentages of 37% food cost and 30% beverage cost. To meet June and September quarter budget targets, new methods of managing costs must be investigated.

· Answer all questions based on the outcomes in the comparative analysis report Bistro departmental budget – May, Bistro purchasing budget – May and case study information.

Q1: List four (4) options for managing costs that could be applied to this situation.

Satisfactory ☐ Unsatisfactory ☐

Q2: You have decided to source new fruit and vegetable and seafood suppliers. Describe how you would investigate if changing suppliers is a viable option for reducing your cost of sales. How will you obtain information to determine if prices and product quality from alternate suppliers are appropriate for your operation?

Satisfactory ☐ Unsatisfactory ☐

Q3: You need to investigate which current suppliers have increased prices for products and services, how much prices have risen and how much of the business’s financial resources are allocated to existing suppliers.

What organisational financial documentation will provide this information?

Satisfactory ☐ Unsatisfactory ☐

Q4: Your research has revealed that a number of other suppliers can supply similar quality items at cheaper prices than your current supplier. Describe what you would discuss with your current supplier before making a decision.

Satisfactory ☐ Unsatisfactory ☐

Q5: Who would you consult with before implementing any changes to the hotel’s suppliers of fruits and vegetable and seafood products?

Satisfactory ☐ Unsatisfactory ☐

Task 3: Improve budget performance

· Read and interpret the information and outcomes contained in the Bistro labour budget – June quarter.

· Evaluate their impact on the operation and financial goals of the bistro.

· Answer all questions based on the labour comparative analysis report, staffing and case study information.

Q1: Complete the table below by inserting the variance percentage for each category in each month.

Satisfactory ☐ Unsatisfactory ☐

Q2: What do these statistics tell you about the bistro’s performance for the June quarter? Explain what the variances mean and how this affects the department’s ability to meet its financial goals.

Satisfactory ☐ Unsatisfactory ☐

Q3: Management think one reason for high bistro labour costs is the department is consistently overstaffed; more staff than necessary are rostered on for most service periods. Rosters have been reviewed and new staffing levels suggested for front of house and kitchen areas. The number of customers served and sales revenue is expected to remain relatively stable in the near future.

Review the bistro’s current and revised staffing levels in Bistro staffing levels table.

Discuss the impact these changes could have on customer service levels, your team and budget targets. Consider both positive and negative outcomes.

Satisfactory ☐ Unsatisfactory ☐

Q4: What payroll documentation can you use to maintain detailed records and monitor funds allocated to labour costs during the budget period?

Satisfactory ☐ Unsatisfactory ☐

Q5: During the initial investigation phase, with whom would you discuss the reasons for changes to rosters and the desired outcomes of the changes?

Satisfactory ☐ Unsatisfactory ☐

Q6: You believe the changes will have a negative impact on customer service standards and food quality, leading to an increase in customer complaints. This could lead to lower customer numbers and sales revenue over the next year.

You want to present your concerns to management and recommend smaller cuts to staffing levels, especially to the front of house team during the busiest periods. Your suggestions include better management of hours worked by casual staff and a review of service procedures to streamline work practices.

Prepare a transcript of your recommendations to be presented to management at the next management meeting.

Satisfactory ☐ Unsatisfactory ☐

Case study 3

It is the end of the June financial quarter and all departments in the Jackson’s hotel are preparing financial and statistical reports.

Task 1: Prepare a profit and loss statement

· Review the Bistro reports.

· Complete the Bistro profit and loss statement – June quarter by calculating all missing dollar value and percentage variances.

Satisfactory ☐ Unsatisfactory ☐

Task 2: Prepare a statistical report

· Complete the Trend analysis report – June quarter using the information provided.

Satisfactory ☐ Unsatisfactory ☐

SITXFIN003 – Assessment

Page|2

Page|1

Bistro profit and loss statement – June quarter

Trend analysis report – June quarter

Variance formula

To calculate variance between two time periods.

(Current year – Previous year) / Current year x 100 = variance%

Example 1

(June quarter current year – June quarter 200X) / June quarter current year x 100 = variance between the two periods

Food sale variance = (328,500 – 286,781) / 328,500 x 100 = 12.7% increase in food sales revenue

Example 2

(June quarter 200X – June quarter 20XX) / June quarter 200X x 100 = variance between the two periods

Cleaning contractor variance = (3,845 – 3,230) / 3,845 x 100 = 16.0% increase in cleaning contractor expenses

SITXFIN003 – Assessment

Page|2

Task 3: Prepare a management report

Prepare a short report to management outlining the following information.

· Positive and negative budget variations indicated in monthly and quarter analysis reports and profit and loss statement that are significant enough to affect the operation of the bistro and its profitability.

· Trends identified in the trend analysis report that have the potential to affect the bistro’s profitability in the immediate future.

· Possible reasons for the positive or negative variations and trends.

· Any recent actions that have been taken or changes to operational procedures as a result of trends and deviations.

Base the report on the following information.

· Profit and loss statement

· Trend analysis report

· April, May and June comparative analysis reports

· Case study information provided in Assessments C and D

· Your responses to questions in Assessments C and D

The report should present information in a clear, concise and easy to understand manner so it supports good decision-making processes.

Satisfactory ☐ Unsatisfactory ☐

Task 4: Question and answer

Q1: The following factors must be considered when preparing financial and statistical reports. Select three factors that are relevant to one or more of the reports you prepared or completed in Tasks 1, 2 and 3.

Discuss how they influenced preparation or outcomes of the report(s).

Factors for consideration in the preparation of financial and statistical reports.

· Performance of department, project and/or products and services

· Daily, weekly and monthly transactions

· Variances in income and/or expenditure

· Sales performance

· Sales returns

· Staff costs

· Cash flow

· Covers and financial return

· Expenditure

· Income

· Occupancy rates and financial return

· Stock levels

· Wastage

· Yield

Satisfactory ☐ Unsatisfactory ☐

Practical checklist

To be completed by the assessor.

Assessment result:

Assessment tasks

For a student’s performance to be deemed satisfactory for the whole unit of competence, they must demonstrate satisfactory performance in this assessment.

Written assessment

In this assessment task students are required to read the questions and either select the one correct answer from a number of alternatives or write a response in the space provided.

If part of a task is not satisfactorily completed the assessor will arrange for the student to complete further assessment to demonstrate competence. Students are permitted three (3) attempts to demonstrate competency.

Overall student performance in the unit is to be recorded as either Competent or Not Yet Competent.

This assessment contains a series of questions designed to allow students to demonstrate competence in the unit.

To complete the written assessment, students must successfully complete the following:

Task B – Project

Unit outcome

At the successful completion of this assessment, a Competent result will be awarded. The overall unit result and feedback are recorded at the end of this documentation.

Task A – Short answer

You are required to:

PLAGIARISM AND COLLUSION

CONSEQUENCES OF PLAGIARISM AND COLLUSION

Complete the cover sheet and ensure you accept, sign and date the student declaration on the Student Learning Management System (LMS).

Read through and follow all instructions provided.

Complete each assessment task/activity.

Submit your assessment to the Student Learning Management System (LMS) by the due date.

Ensure your submission identifies your name, unit code and title.

Plagiarism is ‘a practice that involves the using of another person’s intellectual output and presenting it as one’s own’. This includes the presentation of work that has been copied, in whole or part, from other sources (including other students’ work, published books or periodicals, the Internet, unpublished works or unauthorised collaboration with other persons), without due acknowledgement.

A student found to have plagiarised material will be instantly graded Not Yet Competent (NYC) and may be subject to one or all of the following:

Referral of the matter to the Academic Coordinator for: an intervention meeting, issuing of written warning, clarification regarding assessment re-submission requirements and allocation of additional assessment tasks.

Referral of the matter to the Director for: official disciplinary action by Frontier Education and/or suspension from the course.

Page|2

Page|1

.MsftOfcThm_MainLight1_Fill { fill:#FFFFFF; } .MsftOfcThm_MainDark1_Stroke { stroke:#000000; }

.MsftOfcThm_MainLight1_Fill { fill:#FFFFFF; } .MsftOfcThm_MainDark1_Stroke { stroke:#000000; }

.MsftOfcThm_MainLight1_Fill { fill:#FFFFFF; } .MsftOfcThm_MainDark1_Stroke { stroke:#000000; }