Assignment Task
Task
Certificate IV Commercial Cookery (Release 1)
Diploma of Hospitality Management (Release 1)
Advanced Diploma of Hospitality Management (Release 1)
**Amend the qualification box before distributing to the student. The information here should only contain the qualification the student is enrolled in**
Student details
Student number
Student name
Assessment declaration
This assessment is my original work and no part of it has been copied from any other source except where due acknowledgement is made.
No part of this assessment has been written for me by any other person except where such collaboration has been authorised by the assessor concerned.
Assessment instructions
Table 1 Assessment instructions
Assessment details Instructions
Assessment overview The objective of this assessment is to assess your knowledge and performance as would be required to manage finances within a budge, demonstrating your ability to monitor financial activities against a budget and complete financial reports.
The budget may be for an entire organisation, for a department or for a particular project of activity.
Assessment Event number 2 of 2
Instructions for this assessment This is a case study assessment and it will be assessing you on your knowledge and performance skills required by the unit.
This assessment is in three (3) parts:
Part 1:The Linton Club Profit and Loss Statement
Task 1 – Profit and Loss Statement – Calculate budget and variance
Task 2 – Profit and Loss Statement – Deviations exercise
Task 3 – Four (4) short answer questions
Task 4 – Allocate budget resources
Part 2: Restaurant wages budget
Task 5 – Wage budget calculations
Task 6 – Five (5) short answer questions and a report
Task 7 – Verbal presentation/Group discussion
Part 3: Assessment feedback
Submission instructions On completion of this assessment, you are required to submit it to your trainer for marking.
Ensure you have written your name at the bottom of each page of this assessment.
It is important that you keep a copy of all electronic and hardcopy assessments submitted to TAFE and complete the assessment declaration when submitting the assessment.
What do I need to do to achieve a satisfactory result? To achieve a satisfactory result for this assessment all questions must be answered correctly.
What do I need to provide? Calculator, pen and writing materials
Computer with access to Microsoft Excel / spreadsheet software or accounting software
What will the assessor provide? Assessment SITXFIN003_AE_CS_2of2
SITXFIN003_CS_2of2_Excel_Template_SRComputer with access to Microsoft Excel / spreadsheet software or accounting software
Due date and time allowed/location You will be completing this in your own time and must be given two (2) weeks to complete this assessment. It is expected that this task will take approximately 6 hours to complete.
Additionally there will be 1 hour allocated to an in-class group verbal presentation.
Your Teacher/Assessor will advise the due date of this assessment.
Supervision This is an unsupervised, take-home assessment. Your assessor may ask for additional evidence to verify the authenticity of your submission and confirm that the assessment task was completed by you.
Assessment feedback, review or appeals In accordance with the TAFE NSW policy Manage Assessment Appeals, all students have the right to appeal an assessment decision in relation to how the assessment was conducted and the outcome of the assessment. Appeals must be lodged within 14 working days of the formal notification of the result of the assessment.
If you would like to request a review of your results or if you have any concerns about your results, contact your Teacher or Head Teacher. If they are unavailable, contact the Student Administration Officer.
Contact your Head Teacher for the assessment appeals procedures at your college/campus.
Part 1: The Linton Club Profit and Loss Statement
Background information
This part of your assessment will be based on The Linton Club, a fictitious venue that has two (2) restaurants and a bar. You are the Food and Beverage Supervisor and have been asked to monitor the club’s income and expenditure and report on budgetary deviations. In particular, you will be reviewing and updating the Profit and Loss Statement.
Task 1 – Refer to The Linton Club Profit and Loss Statement template for the month ending 30 June 2018, shown on the following page. Calculate the budget variance indicating the dollar value in column (A) and the percentage deviation in column (B). Don’t forget to clearly indicate which figures are positive or (negative).
Please use the SITXFIN003_CS_2of2_Excel_Template_SR provided.
Task 2 – Refer to The Linton Club Profit and Loss Statement for the month of June 2018. Determine if the deviations were favourable (F) or unfavourable (U) results and enter this in column (C) provided in the Profit and Loss Statement.
Task 3 – Based on the results of The Linton Club Profit and Loss Statement for the month of June 2018, provide your written responses to the four (4) short answer questions in the spaces provided in this document.
Task 4 – Allocate budget resources.
Task 1 and 2: The Linton Club Profit and Loss Statement for the month of June 2018
Table SEQ Table \* ARABIC 2 Profit and Loss Statement
Sales Actual Budget Variance
$ value of deviation Variance
% value of deviation Favourable (F) or Unfavourable (U)
Food Sales Brasserie $35,000 $45,000 ($10,000) (22.22) Unfavourable (U)
Bar meals $9,000 $8,000 Café meals $8,000 $9,000 ($1,000) (11.11) TOTAL FOOD SALES $52,000 $62,000 ($10,000) (16.13) Beverage Sales Brasserie $20,000 $25,000 ($5,000) (20.00) Bar $28,000 $25,000 Café $23,000 $25,000 ($2,000) (8.00) TOTAL BEVERAGE SALES $71,000 $75,000 TOTAL SALES $123,000 $137,000 Cost of Sales Food purchases $13,520 $17,980 $4,460 (24.81) Beverage purchases $17,040 $19,500 TOTAL COSTS OF SALES $30,560 $37,480 GROSS PROFIT $92,440 $99,520 Expenses Advertising $1,555 $2,000 Cleaning materials $1,075 $1,300 Management fees $9,000 $9,000 $0 0.00 Laundry & linen hire $1,050 $1,000 $50 5.00 Utilities $2,925 $2,500 $425 17.00 Musicians & entertainers $1,215 $1,500 ($285) (19.00) Courtesy bus $495 $750 Printing & stationery $1,015 $1,000 Rent $25,000 $25,000 $0 0.00 Security $185 $200 Telephone $1,435 $1,000 $435 43.50 Wages $46,750 $50,000 TOTAL EXPENSES $91,700 $95,250 PROFIT/LOSS $740 $4,270 Task 3: Short answer questions
Consider the variances calculated in the Linton Club Profit and Loss Statement of the month ending 30 June 2018 in Tasks 1 and 2. In the table following, describe the variance outcome and suggest contributing factors based on the profit and loss figures.
An example has been provided to guide students.
Table SEQ Table \* ARABIC 3 Profit and loss analysis
Topic for analysis Variance Factors
Food sales Food sales were $10,000 and 16% under budget. Brasserie sales were down significantly and caused the overall poor result.
Beverage sales Cost of sales Total expenses Profit/loss
Based on the Linton Club April – June 2019 three (3) monthly budgets shown below, provide three (3) recommendations to management that could be introduced to the workplace to ensure unfavourable deviations are minimised. In your answer you should also address:
how budget deviations can be managed in the future and
trends identified when comparing budget results with actuals when determining what improvements to implement.
Table SEQ Table \* ARABIC 4 Monthly budgets
The Linton Club April – June 2019 Budget
April 2019 May 2019 June2019
Sales Actual Budget Actual Budget Actual Budget
Food Sales
Brasserie $40,000 $42,000 $45,000 $45,000 $35,000 $45,000
Bar meals $8,000 $10,000 $7,500 $8,000 $9,000 $8,000
Café meals $8,000 $10,000 $8,500 $9,000 $8,000 $9,000
TOTAL FOOD SALES $56,000 $62,000 $61,000 $62,000 $52,000 $62,000
Beverage Sales
Brasserie $19,500 $25,000 $22,000 $20,000 $20,000 $25,000
Bar $25,000 $25,000 $27,000 $25,000 $28,000 $25,000
Café $22,000 $25,000 $24,500 $25,000 $23,000 $25,000
TOTAL BEVERAGE SALES $66,500 $75,000 $73,500 $70,000 $71,000 $75,000
TOTAL SALES $122,500 $137,000 $134,500 $132,000 $123,000 $137,000
Cost of Sales
Food purchases $16,000 15,500 $14,500 $16,000 $13,520 $17,980
Beverage purchases $17,000 18,000 $19,000 $19,500 $17,040 $19,500
TOTAL COSTS OF SALES $33,000 $33,500 $33,500 $35,500 $30,560 $37,480
GROSS PROFIT $89,500 $103,500 $101,000 $96,500 $92,440 $99,520
Expenses
Advertising $1,590 $2,000 $1,700 $2,000 $1,555 $2,000
Cleaning materials $1,100 $1,300 $1,200 $1,300 $1,075 $1,300
Management fees $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Laundry & linen hire $1,020 $1,000 $1,200 $1,000 $1,050 $1,000
Utilities $2,240 $2,500 $3,000 $2,500 $2,925 $2,500
Musicians & entertainers $1,200 $1,500 $1,600 $1,500 $1,215 $1,500
Courtesy bus $590 $600 $700 $600 $495 $750
Printing & stationery $1,000 $1,000 $1,100 $1,000 $1,015 $1,000
Rent $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Security $200 $180 $200 $200 $185 $200
Telephone $950 $1,000 $1,200 $1,000 $1,435 $1,000
Wages $46,000 $50,000 $53,000 $50,000 $46,750 $50,000
TOTAL EXPENSES $89,890 $95,080 $98,900 $95,100 $91,700 $95,250
PROFIT/LOSS $8,420 $2,100 $1,400 $740 $4,270
Table SEQ Table \* ARABIC 5 Recommendations
Recommendation (a) How budget deviations can be managed in future (b) Trends comparing budget with actuals
From Question 2 above, evaluate how your recommendations to management may impact on customer service levels at The Linton Club.
a) Identify three (3) budget targets and actuals information that should be discussed with staff members of a department or outlet of The Linton Club.
b) Provide two (2) reasons why this information should be shared with staff members and identify which staff you would share this information with.
a) Budget information
b) Reasons why?
i.
ii.
Task 4: Allocate budget resources
The Linton Club management is considering outsourcing the three (3) eateries. You have been asked to put together a budget for the Brasserie based on the June 2018 Linton Club Profit and Loss Statement.
Referring to the template below, create a budget for the Brasserie using the following figures. Refer to the Microsoft Excel template: SITXFIN003_CS_2of2_Excel_Template_SRThe Brasserie is the most popular eatery. A summary of the budgeted costs have been listed below:
The cost of goods sold (food purchases and beverages purchases) have been estimated at 67% of the June 2018 profit & loss figures
The Linton Club has agreed to absorb management fees, courtesy bus and security costs. These can be removed from the budget
The following expenses have been reduced to $500 per month:
Adverting
Printing & stationery
The following budgeted expenses are reduced to 67% of the June 2018 profit and loss:
Cleaning materials
Laundry & linen hire
Utilities
Musicians & entertainers
Telephone
Rent has been capped at $10,000 per month
Wages are budgeted at 35% of June profit and loss
Before finalising a budget, it is important to discuss the estimated income and expenditure priorities with relevant colleagues and stakeholders. Identify at least three relevant staff you would consult with before finalising a budget. An example has been provided for you using an external supplier.
Table 6 Relevant staff
Staff member Reason for consultation
Suppliers Confirm accuracy based on previous purchasing history, identify best pricing for services / items, discounts, bulk vs just in time stock,
Once the budget has been confirmed, it is recommended relevant personnel (staff) be informed about the resource decisions. Discuss why it is important for staff to be aware of budgets and resource allocation. Provide two (2) reasons to support your answer.
Part 2: Restaurant wages budget
The following information has been given to the student.
Background Information
This part of your assessment will be based on a fictitious restaurant in Sydney’s CBD. This restaurant has a 120-seat capacity and is very busy during the week catering to the corporate – business sector. It is a popular venue for parties to accommodate small groups. The business is open every day except Christmas Day.
As the restaurant manager, your task will focus on wage budgets for the financial quarter Oct – Dec and into the next quarter to forecast new year wages. This financial period in any hospitality business is challenging due to the months of November and December being particularly busy with Christmas parties with high revenue and high spend on expenses. However, after mid-December when the corporate sector quietens the business experiences high wages and low revenue. New Year trading is equally unpredictable, and this is why permanent staff are encouraged to take leave over January.
The restaurant aims for wage expenses to be around 25%-30% of revenues. Staff need to closely monitor the budget figures and constantly investigate new ways in to keep to the budget.
Task 5: Wage budget calculations
Refer to the restaurant wages budgets on the following pages for October 2017 to January 2018 and complete the questions below.
Open Microsoft Excel and enter the following wage budgets using a similar format as shown below.
Using formulas, complete the calculations in your budgets to provide the totals for monthly wage expenses and revenue in column (A) and the wage cost percentage in row (B). The budget for the month of October 2017 has been completed for students as an example.
Table 7 October budget
October 2017 budget Week one Week two Week three Week four Monthly
Total
Wages expense $2,300 $2,300 $2,300 $2,300 $9,200
Revenue $6,000 $6,000 $6,000 $6,000 $24,000
Wage cost 88888%
Table 8 November budget
November 2017 budget Week one Week two Week three Week four Monthly
Total
Wages expense $3,200 $3,500 $3,800 $4,000 Revenue $8,200 $8,200 $9,600 $11,000 Wage cost %
Table 9 December budget
December 2017 budget Week one Week two Week three Week four Monthly
Total
Wages expense $4,500 $4,500 $3,900 $3,200 Revenue $13,100 $14,000 $11,000 $8,000 Wage cost % Table 10 January budget
January 2018 budget Week one Week two Week three Week four Monthly
Total
Wages expense $3,000 $3,300 $2,600 $3,200 Revenue $5,400 $5,800 $4,800 $6,200 Wage cost % Once completed you will need to upload or submit these spreadsheets as part of your assessment to your assessor for marking.
Task 6: Short answer questions
Once you have completed all the calculations in the restaurant wages budget, analyse the financial information and answer the following questions in the spaces provided.
a) Which financial reporting period does the budget period cover?
b) What is the total amount for wage expenses for the month of December?
c) What is the total budgeted amount for wage expenses for the four months – October to January?
d) What is the actual wage cost percentage calculated for the month of January? Is the wage cost percentage more than the expected aim of 25% – 30% of revenue?
Outline two (2) strategies for reducing staff wages costs describing how each will improve the budget performance
You are now required to conduct research to new approaches to budget management You will then provide your findings in a report on to the restaurant manager, Mr Kevin Dodd, outlining your recommendations for the following year, Christmas – New Year trading period. Your report will be approximately 350 words and the following topics must be used to inform your report:
How you will promote awareness of the importance of budget control.
The importance of keeping detailed records of wage allocation.
How you will manage the impacts on customer service levels and staff in developing new approaches.
Possible positive and negative effects on the Restaurant of these new approaches.
The approach to continue to inform all relevant personnel about the budget changes and decisions.
How you would operationalise recommendations via processes and people (staff)
How you will continue to monitor overall income and expenditure to evaluate wage budget performance prior to the end of year trading period – including the key items that you will monitor.
Recommendations for wage budget management.
Task 7: Verbal presentation
You are now required to bring the completed report from Question 6 (above) to the classroom. You will form a small workgroup of approx. four (4), where each student will have five (5) minutes to present their findings of the report to their workgroup.
After all students have presented their own report, the group will have 10 minutes’ discussion time to seek further clarification on their findings and provide direction and feedback to the speaker.
Students must:
Verbally present the key findings of the report ensuring they:
discuss budget requirements
seek feedback from their workgroup.
provide direction and feedback to the workgroup for the reports presented
The Assessor will need to complete the Observation Checklist during this time.
Observation Checklist
Table 11 Observation Checklist
Task 7 Task/Activity Performed S U/S Assessor Comments(Describe the student’s ability in demonstrating the required skills and knowledge)
a Budget requirements (points a- h) were discussed with key recommendations shared.
Presented in a clear and logical manner. b Participated in discussion by;
seeking feedback on new approaches to budget management
providing feedback to other members of the work team. c Provided direction to other members of the work team regarding their recommendations. Part 3: Assessment feedback
NOTE: This section must have the assessor signature and student signature to complete the feedback.
Assessment outcome
? Satisfactory
? Unsatisfactory
Assessor feedback
? Was the assessment event successfully completed?
? If no, was the resubmission/re-assessment successfully completed?
? Was reasonable adjustment in place for this assessment event?
? Has the Assessment Declaration on page 1 of the assessment been signed and dated by the student?
? Are you assured that the evidence presented for assessment is the student’s own work?
If yes, ensure it is detailed on the assessment document.
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