Finance In The Hospitality Industry

BEACON Assessment Cover
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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
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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 materialsfrom varioussources 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.
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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