The aim increase sales and the quality coffee served

	STRATHFIELD COLLEGE Strathfield College Pty Ltd CRICOS Code: 02736K National Code: 91223 ABN: 85 168 435 667

Assessment Task 1

Assessment Description
This unit applies to tourism, travel, and hospitality and event businesses. While the case study scenario is based on a hospitality business, the principles for managing a budget demonstrated in this assessment are the same in all types of businesses

● Name the file using the assessment task number and then save your file.

● Ensure your submission identifies the unit code and title, the assessment task number and the name of the assessment at the top of the page. Alternatively, you may place this information in the document header.

You are required to do the following.

● Complete Tasks 1 and 2 in Part 1
● Read the scenarios and answer the questions.

Case study

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.

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.

The bistro menu changes to the new winter menu on May 1​st​. Its introduction is being promoted

in April throughout the hotel.

Variable direct costs

- Food
- Beverage
- Wages

- Significant funds are allocated to these categories because business can’t operate without those required utilities. If inadequate funds are allocated we might go through very serious budget problem

Q4: Using the same Open Budget – June quarter go to the ​Bistro departmental budget – April​.

Complete the comparative analysis report for the Bistro departmental budget – April 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.

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.

- The most significant variances are in the food and beverage sales, which are higher than the budget, which is definitely a positive result, and due to this we should not concerned about it.

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?

- The outcome of the budget meets the required targets, it has performed favourably with

the net profit of 8.5% increase. The business is in line to meet the budget target of the

You are required to do the following.

Complete Tasks 1, 2 and 3 in Part 2

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.

Task 1:

Go to your ​Bistro May budgets.

Q3: When preparing the budgets, the hotel forecasted food costs as 37% of food sales and beverage costs as 30% of beverage sales.

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

	STRATHFIELD COLLEGE Strathfield College Pty Ltd CRICOS Code: 02736K National Code: 91223 ABN: 85 168 435 667

Task 2:

- First point we can go online and check all the different prices on the market, obtain different quotation. We can negotiate with our suppliers, and sample the new product, trial them to see if they are of good quality. Evaluate if is convenient to change supplier or to keep the same one and try to negotiate.

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.

items at cheaper prices than your current supplier. Describe what you would discuss with your current supplier before making a decision.

- Negotiate with your supplier for better prices and quotation compared with new suppliers, discuss the importance of maintaining quality, and do spot check every time. Try to maintain long relation with the supplier.

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.

Explain what the variances mean and how this affects the department’s ability to meet its financial goals.

- There are some positive and some negative outcomes. Some positive consequences are: Reducing wage costs there’s an increase of profitability, it will be so much easier to meet your budget target. There’s also an increase of productivity of the staff. Negative impact can happen on the customer service, it can reduce potentially the sales, and it can affect staff morale.

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

management meeting.

- Keep casual staff during busy periods to maintain good customer quality service, and try