SITXFIN003: You are an Operations Manager with Marino Enterprises and oversee the operations for six of the venues. John Marino has asked you to monitor and review specific budget: Manage Finances within a Budget Assignment, WSU, Australia

Budget Review

You are an Operations Manager with Marino Enterprises and oversee the operations for six of the venues. John Marino has asked you to monitor and review specific budget figures for two businesses as presented below and present an analysis of their meaning for the organization.

The management team is keen to identify issues that need to be addressed based on an analysis and review of the budget data in order to optimize the viability of the business while retaining market share, market position, and high product and service standards.

Question 1

Use a spreadsheet program to calculate and facilitate the development of final figures for Property 1 as follows:

• Calculate the dollar deviations for room sales, food sales, liquor sales, wages, rent, and overheads.
• Calculate the percentage deviations for room sales, food sales, liquor sales, wages, rent, and overheads.
• Indicate if the identified deviations are positive or negative.

Question 2

Use a spreadsheet program to calculate and facilitate the development of final figures for Property 2 as follows:

• Total the budgeted and actual sales for the 6 months.
• Calculate the dollar deviations for sales on a month-by-month basis.
• Calculate the percentage deviations for sales on a month-by-month basis.
• Calculate year-to-date budgeted totals for sales on a month-by-month basis.
• Calculate year-to-date actual totals for sales on a month-by-month basis.
• Calculate the dollar deviations for YTD figures on a month-by-month basis.
• Calculate the percentage deviations for YTD figures on a month-by-month basis.

Question 3

Property 1 suggests four possible causes for the variation in room sales.

Question 4

Property 1 suggests four possible ways to manage the variation in room sales.

Question 5

Identify four possible causes of the results for food sales in Property 1.

Question 6

There is no need for you to investigate the ‘wages’ deviance: why might this be so?

Question 7

In late June Property 1 undertook a major advertising campaign that had been factored into budgets for July: given the actual results for July, what action might you suggest to management?

Question 8

Why would you want to conduct a major investigation into sales for September?

Question 9

The organization has found out that other businesses in the chain had shown a 6% positive variation in actual sales against budgeted revenue figures: list three suggestions on what might you do about this?

Question 10

How might you research internal factors impacting the figures you have been given? Give three suggestions.

Question 11

What could you do to research external factors impacting the figures you have been given? Give five suggestions.

Question 12

List five internal source documents that you would need to refer to in order to determine profit performance for the food and beverage areas.

Question 13

Which colleagues and managers might you need to share these findings with? Give five suggestions.

Question 14

You briefly consider reducing staff numbers as a way of improving profit but reject the idea: what reasons might be behind this thinking?