Finance in the Hospitality industry

BEACON Assessment Cover Page

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Centre: Beacon International College

Student Name:

Beacon Student No: Registration No:

Course Bridging BAIHM

Unit Title: Finance in the Hospitality Industry

Unit No: Assignment No: 1

Assignment Title Understanding the basics of finance.

Hand out Date: 04 MAY 2021 Hand in Date: 11th MAY 2021

Semester:

Unit Assessor Devendren Sathasivam Internal IV Name:

AIM OF ASSIGNMENT:

UNIT LEARNING OUTCOME:

SUBMISSION FORMAT:

The submission is in the form of a report. This should be written in a concise, formal business style using 1.5 spacing and font size 12. All work must be supported with research and referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 1500 words, although you may not be penalised for exceeding the total word limit. The word limit does not include the required calculations.

LO 1: Understand sources of funding and income generation for business and services industries. LO 2: Understand business in terms of the elements of cost.

LO 3: Be able to evaluate business accounts. LO 4: Be able to analyse business performance by the application of ratios. LO 5: Be able to apply the concept of marginal costing.

The aim of this unit is to enable students to develop practical understanding of the accounting techniques used to control costs and profits, and to support managers in making effective short-term decisions.

Centre: Beacon International College

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ASSIGNMENT BRIEF AND GUIDANCE

You are the Executive Assistance Manager working for Hotel Orchard Central Limited (HOC). Recently your hotel has finalized the department annual report for 2020. Based on the annual report, as shown below, your General Manager has requested you to analyse the overall operation of the F&B department and Rooms Division and prepare a report for the management.

F&B Department Operating statement of Hotel Orchard Central Limited

(Year Ending 31st December 2020)

Budget Actual

$ ‘000 $ ‘000

Total Revenue 24,200 25,608

Food 19,400 20,900

Beverage 5,600 4,708

Cost of Goods Sold

Food 5,500 5,860

Beverage 1,680 1,412

Total Cost of Goods Sold 7,180 7,272

Fixed labor cost 3,500 3,500

Variable labor cost 200 135

Other Expenses

Employee Benefits 650 850

Direct Operating Cost 850 570

Licensing Fees 60 60

Repair & Maintenance 150 131

General & Administrative Cost 250 210

Insurance 320 320

Net profit XXXXX XXXXX

Total Number of covers served = 495,000

Total Restaurant Operating Hours in 2019 = 2880 hours (based on 10 Hours/day, 6 days/week)

Total Number of Seats = 190 seats (based on 3 F&B Outlets)

Centre: Beacon International College

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Your report should seek to incorporate the following information:

• Review sources of funding available to HGC and evaluate the contribution made by a range of methods of generating income, (500 words)

• Discuss elements of cost (including categorizing costs as fixed, variable and semi-variable), and selling prices for products and services, and evaluate methods of controlling stock and cash in HGC,

• Discuss the process and purpose of budgetary control and analyse variances from budgeted and actual figures, offering suggestions for appropriate future management action,

• Calculate and analyse THE FOLLOWING: - o Gross Profit Margin o Net Profit Margin o Gross Profit Percentages o Average Daily Room Rate (ADR) o Revenue per available room (RevPAR) o Revenue per available seat hour (RevPASH) (monthly basis)

ADDITIONAL INFORMATION ON HOC.

ROOM TYPE NO. ROOMS SOLD IN 2020

ROOM A @ $450, Rooms Available - 100 rooms 1650

ROOM B @ $310, Rooms Available - 180 rooms 2560

ROOM C @ $225, Rooms Available - 120 rooms 1860

Centre: Beacon International College

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SUBMISSION REQUIREMENTS

The following requirements must be observed:

1. Report

• Your report must adhere to these formatting guidelines:

* Must be typed and not hand written.

* Use either Times New Romans Font 12 or Arial Font 10.

* Use line spacing of 1.5 to 2.0 with at least 25 mm left and right margins.

* Must be properly bound and all pages numbered.

• Your report must be clear and well-organized with page number, headings, subheadings, numbering and

proper referencing (use Harvard Referencing System).

• Your report must be organised according to the questions sequencing and no deviation is allowed.

• You are not allowed to copy chunks of materials from various sources and paste in your report even though

references are provided. All information referenced must be analysed, summarised and expressed using

your own words.

• All URLs of sites and reference material used to accomplish this assignment should be listed and clearly

cross- referenced.

• You should provide a reference list at the end of the report for all sources of information referenced in

your report. Do not include www.wikipieda or URL of search engine (e.g. www.google.com,

www.baidu.com) as references.

2. Plagiarism

Copying others’ work or allowing others to copy your work is a serious offence and will lead to consequences

such as:

• Immediate failure of a unit. To repeat the unit when it is next offered, the full tuition fee must be paid

before the unit commences.

• Dismissal from school. (Refer to clause 5.2 of the Student Contract.)

3. Softcopy and Hardcopy Submission

You are to submit the softcopy and hardcopy (if necessary) version of your assessments where indicated.

Submit softcopy online through Moodle via the Turnitin Plagiarism software.

a. The online submission will be deemed as the final submission.

b. The assignment submission date will be based on the date/time of receipt of the softcopy submission.

c. For hardcopy, hand written report will not be accepted (unless indicated).

4. Cover Page and Plagiarism Declaration Form (if applicable)

The assignment should be submitted together with the Cover Page and Plagiarism Declaration Form.

Assignment without proper Cover Page & Plagiarism Declaration Form. will not be accepted.

Ensure your name, course and unit details, assignment no. are correctly written. Wrong submission will not

be accepted.

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5. Use of Harvard Referencing System

Part A - Citation Format in Report Body

• Throughout the body of your report quote the source of your information in brackets. General Format: author’s surname, year of publication, page number

• At the end of the sentence where you have used the information, before the full stop. E.g. Schumpeter’s Theory of Creative Destruction has been shown to apply in several information systems

contexts (Sidharti 2004).

• Immediately after the author quoted.

E.g. Sidharti (2004) shows that Schumpeter’s Theory of Creative Destruction applies to several

information system contexts.

• If you are using a direct quotation, you must give the page number(s).

E.g. Sidharti (2004, p. 65) has stated that the Theory of Creative Destruction is ‘one of the best

explanations for information system change across a variety of contexts’.

Part B - Reference List at End of Report

Source Format & Example

Web Site Author’s surname and initials or name of website if no author is available. (Year). Title of

website in italics [Online]. Available from - URL. [Accessed: date]

E.g. English Heritage. (2005). Wind Energy and the Historic Environment. [Online].

Available from: http://www.english-heritage.org.uk/upload/pdf/

Wind_Energy_(final).pdf. [Accessed: 20th May 2008]

Book Author’s surname, initials, year, title, edition, publisher, place of publication

Eg. Liebowitz, J., Agresti, W. & Djavanshir, G. R. (2006) Communicating as IT

Professionals, Pearson Prentice Hall, Upper Saddle River, USA.

Journal Article Author’s surname, initials, year, article title, journal title, volume number, issue number

Eg. Shorter, D.D. 2006, ‘How do you say “search engine” in your language?: translating

Indigenous world view into digital ethnographies’, Journal of World Anthropology Network, vol. 1, no. 2, pp. 109-113

Conference

Paper

Author’s surname, initials, year, paper title, conference name, conference date,

conference location, page number(s)

Eg. Landale, K., Nguyen, P., Hoque, R., Lee, S.K. & Shin, H.K. 2004, ‘What UTS Does with

Its Old Computers and What They Should Do’, Second Australian Undergraduate

Students’ Computing Conference, 8-10 December 2004, Melbourne, pp. 113-119.

Magazine or

News Paper

Article

Author’s surname, initials, year, article title, name of newspaper/magazine

E.g. Peatling, S. & Malkin, B. 2004, ‘Employers face ban on email spying’, Sydney Morning

Herald, 31 March, p. 17.

Centre: Beacon International College

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FORMATIVE FEEDBACK SHEET

Course

Learner

Name

Assessor

Name

Unit

No. &

Title

Target

Learning

Aims

Assignment

No. & Title

Issue

Date

Interim

Submission

Date

Final

Submission

Date

Target

Criteria Formative Feedback

General Assessor Comments