The The MazReb Highland Hotel Group is a company thats based in the western frontier of Highland City, a tourism hotspot in the Republic of Karombe. The companys planning and actual budgets for December appears below:

The MazReb Highland Hotel Group

Planning and actual budgets for the month ended December 31^st, 2021

PLANNING (000) ACTUAL (000)

Budgeted meals quantity (q) 20 000 18 000

Revenues (5.00q) 100 000 90 000

Expenses:

Raw Material (2.50q) 50 000 45 000

Wages and Salaries (5 500+0.25q) 10 500 10 000

Utilities (2 500 + 0.05q) 3 500 3 400

Facility Rent 5 000 5 500

Insurance 2 800 3 200

Fuel 2 500 2 800

Net Operating Income 25 700 20 100

Required:

1. Outline the possible drawbacks of budgeting and suggest practical ways through which The MazReb Highland Hotel Group could go about minimising these? (15 marks)
2. Prepare a report showing The MazReb Highland Hotel Groups revenue and spending variance for December. Based on this report, which area/s of activity should be of concern to the management of the hotel and WHY? (25 marks)
3. Explain the term Sustainability. Assess and advise The MazReb Highland Hotel Group on the measures they can/should adopt to ensure sustainability in their operations (25 marks)
4. The Executive Management of The MazReb Highland Hotel Group have decided to build a new hotel in the eastern frontier of Highland City. Recommend a viable investment appraisal technique they could employ in evaluating their options in this respect (based on their circumstances). (25 marks)

The word count for this assignment is 1,500 words