Reference no: EM133106752

SITXFIN003 Manage finances within a budget

Performance objective:

The purpose of this assessment is to assess your ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

a) manage a budget for a business over a three-month period that meets the specific business' needs
b) undertake at least two of the following to inform management of the above budget:
o discussions with existing suppliers
o evaluation of staffing and rostering requirements
o evaluation of impact of potential roster changes
o review of operating procedures
o sourcing new suppliers
c) monitor income and expenditure and evaluate budgetary performance over the above budgetary life cycle
d) complete financial reports related to the above budget within designated timelines and using correct budget terminology

PART A

Case Study Analysis on Budget Variance

Top of the Town Hotel has asked you to calculate the variance for the following figures for the month of July and August. Also calculate the total profit that was budgeted and actual. Analyse the findings and inform them about the variance as they are concerned and would like to monitor the income, expenditure, profit levels, budgetary performance of their Food and Beverage Department.

The Hotel owners and managers would like to know from you the major areas of concern where there is a deviation that needs further monitoring and improvement.

PART B

Answer the following questions.
Questions:
1. Explain the importance to the owners of monitoring budgets and why do you think it will help them to manage their finances better for the business.
2. Explain to them the use of analysing the monthly budget and comparing the forecasted budget against the actual budgets.
3. Explain your findings and possible reasons for these variances.
4. What improvements can be done to overcome the variance between forecasted and actual budget?

Part C Variance Analysis

In this part you are provided with an excel file with 2 spread sheets (Budgeted Rooms Revenue Sheet, Actual Rooms Revenue sheet) with the actual figures on the rooms for a given quarter. You are required to calculate the actual revenue that has been generated for each month in the given quarter based on the actual occupancy rate.

Calculate the following details using the appropriate sheet as per the given instructions Budgeted Rooms Revenue Sheet

Refer to the projected data sheet.
• In this sheet first calculate the total projected/forecasted revenue per room type for all 365 days.
• You are also required to calculate total projected/forecasted revenue per room type for each month for Jan, Feb and Mar.
• Calculate the total rooms for each month
• Calculate the Total Revenue for all room types for each month
• Calculate the total projected revenue for 3 months (Jan, Feb and Mar)

Actual Rooms Revenue Sheet
• In this sheet you are provided with the Actual occupancy for each month.
• Calculate the Revenue per room type for each month (Jan, Feb and Mar)
• Calculate the total rooms for each month
• Calculate the Total Revenue for all room types for each month
• Calculate the Variance for each room type for each month (Note before you can do this calculation you have first calculated the budgeted rooms revenue for each month as instructed above using the Budgeted Room Revenue sheet)
• Calculate the variance %

Attachment:- Manage finances within a budget.rar