Prepare and monitor budgets

wing all formulae used. (Find the provided template) Part C Read the following 3 scenarios and answer the questions attached for each scenario. Scenario 1: The finance team has created budget forecasts for Hotel Futura based on carefully researched factors for the last 3 years and these were always very accurate. The recent budget which included all departments of the hotel was implemented 3 months ago and the forecasted figures for Food Cost and COGS/Beverages in both the Restaurant and the Bar Operations have blown out by nearly 4.5 percent. Question 1: What could be the reasons for this? List 5 examples of areas you would investigate and explain why ? Scenario 2: Hotel Futura has successfully operated for 7 years. During this period, overall turnover has doubled, and during the past 3 budget periods annual budgets have been increased by 15% each year which was exceeded each time. During the last 6 months however, management has noticed that the opposite trend seems to be occurring now. Question 1: List 5 external factors which could contribute to this and explain which methods you would use to determine this? Durban International College Pty. Ltd 5 |Page