Continuation of previous post....

https://www.chegg.com/homework-help/questions-and-answers/find-absolute-difference-relative-difference-revenue-actual-revenue-budget-per-available-r-q44320499?trackid=qm_51Byk

Revenue

• Examine rooms revenue variance from budget and identify the reason for increase or decrease by looking at occupancy, average room rate and RevPar
• Assess other revenue sources and assess if there are increases or decreases from budget
• Examine the contribution percentage of each revenue source to total revenue
• Assess total revenues and identify reasons for increase or decrease from budget

Departmental Costs & Expenses

• Assess expense ratio to respective revenue source for each expense category and compare to budget
• Look at absolute dollar differences and per occupied room dollar amounts to assess if expense increased or decreased from budget
• Assess total costs & expenses ratio to total revenue and compare to budget
• Evaluate total operated department income both on percentage of total revenue and dollar figure to assess reasons for increase or decrease from budget

Undistributed Operating Expenses

• Assess the ratio of total undistributed operating expense to total revenue and compare to budget
• Evaluate each expense category using both absolute dollar amount and per available room figures to assess if expense increased or decreased from budget
• Determine if the change in undistributed operating expenses is appropriate in view of revenue increases/decreases and changes in total departmental expenses.

Gross Operating Profit (Income before Fixed Charges)

• Assess GOP absolute and relative difference from budget and identify why
• Assess GOP ratio to total revenue and compare to budget
• Identify problem areas for improvement