Budget review

25. 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 organisation.
26. management team are keen to identify issues that need to be addressed based on an analysis and review of the budget data in order to optimise the viability of the business while retaining market share, market position and their high product and service standards.
27. have been presented with the following information:

1 Selected budget data
	figure	figure
Sales
sales
sales

2 Six months total sales figures
	Budget	Actual

Question 1

21. 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

21. 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

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

Question 4

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

Question 5

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

Question 6

20. is no need for you to investigate the wages deviance: why might this be so?

Question 7

1. 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

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

Question 9

20. organisation 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

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

Question 11

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

Question 12

51. 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

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

Question 14

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