This document is uncontrolled when printed SITXFIN402 Manage finances with a budget – Student’s Assessment Task 3 Version 1.0 – November 2014 ©Shafston House College Ltd trading as Service Skills Academy Page 1 of 4

SITXFIN402 – Manage finances within a budget

Assessment 3 – Part 1 -: Case Study Case study details This Case Study assignment is to be completed individually. This Assessment contains TWO (2) parts, Part A and Part B.

Identity Verification There is no Cover Sheet or Marking Sheet required for this Assessment Task - Electronic authentication of Student identity and marking of answers for assessment is through unique Login and Password. Students are reminded at Login, that the use of their unique login must comply with the eLearning Conditions of Use they must agree to whenever they use their login code to access the eLearning and Assessment Portal. Overview This Assessment Task requires the student to read, analyse and provide a written response to a case study for the Top of the Town Hotel. Four (4) questions needs to be addressed in detail. Students should attempt the questions once they feel they are confident that they fully understand the course content delivered to them in line with their Study Plan. Timelines for completion of this Assessment Task are in line with the Learner’s Study Plan. Learners will have successfully completed this Assessment Task when they have completed all questions within the assessment correctly, and submitted the completed work to SSA in either a hard copy or electronic format. Detailed Instructions: Part A – Case Study analysis on budget variance Part B – Short answer questions The case study questions are located following the case study description. Learners are required to submit typed responses to all questions. There is no minimum word requirement for this task, however Students must address all aspects of the questions in the responses unless otherwise specified; for example; if the question requires the student to list six (6) responses, that is the minimum to be provided, if the question requires learners to provide calculations, a show of workings is required) Learners will write answers on the assessment where applicable (e.g. to complete tables or diagrams or multiple choice questions) and attach answer sheets to their assessment when they submit. Students answer sheets need to clearly identify the question they are answering and be delivered to SSA within the timelines identified in the Learner’s Study Plan.

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PART A Case Study Analysis on Budget Variance Top of the Town Hotel has asked you to calculate the variance for the following figures for the month of July and August. Also calculate the total profit that was budgeted and actual. Analyse the findings and inform them about the variance as they are concerned and would like to monitor the income, expenditure, profit levels, budgetary performance of their Food and Beverage Department. Item July August Budget Actual Variance Budget Actual Variance Sales Revenue

200,000 189,000 190,000 177,000

Food Costs 85,000 87,000 85,000 86,000 Beverage Costs

14,000 15,000 15,000 15,000

Labour Costs

77,000 82,000 78,000 82,000

Fixed Costs 35,000 35,000 35,000 35,000 Total Costs Profit The Hotel owners and managers would like to know from you the major areas of concern where there is a deviation that needs further monitoring and improvement. Please provide a written analysis of the results and the possible reasons for the variances based on the Budgeted Actual results.

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PART B Answer the following questions. Questions: 1. What are the four (4) main points of importance for the owners to monitor budgets and what

are the reasons why you think it will help them to manage their finances better for the business.

1. 2. 3. 4. 2. Explain to them the use of analysing the monthly budget and comparing the forecasted

budget against the actual budgets?

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3. Explain your findings and possible reasons for these variances

4. Research and suggest what improvements do you think the owners can take to improve this situation?

Important Note: Ensure you check your work before submitting