Formatting of word document. Format: Times New Romans Line Spacing: 1.5 Margins: 1cm (left) 3 cm (right) 2.5 (top and bottom) Reference style: APA Task Description The assignment comprises three tasks: 1. Short Answer Questions (T1) 2. Variance Analysis for one event & Recommendations (T2) 3. Strategic Considerations (T3) This theoretical and practical assessment provides you with insights into the purpose of the operational budgetary process within the tourism and hospitality industry. You must demonstrate your ability to apply the theoretical knowledge of financial and operational concepts to specific case studies. Besides the application, the interpretation of financial information regarding its implication for the operational decision-making processes within the business context is even more important for a successful outcome of the assessment. For your assignment, you must analyse the three levels of the variance analysis for one event budget allocated to your case. Surrounding circumstances of the case. As event manager, you planed a simplified event budget detailing the total sales revenue from the packs sales per attendee, and the food and beverage expenses. For the purpose of this assignment, the labour and other operating expenses of the event are ignored. Thus, the profitability is solely driven by the revenue and costs. Now you need to explain the variances and the profitability impact to your supervisor. Please read the instructions carefully and provide references were appropriate, particularly for the first task (T1). Further, be aware that the tasks 2 & 3 are interrelated. You will find the excel files in the assessment folder. Excel Instructions Data You have access to one excel file for each case. Each excel file includes 4 simplified event budgets and actual performance data Event Choice & group Communication You must communicate with your group members to coordinate who will discuss which event (Event 1, Event 2, Event 3 or Event 4). Every group member must choose a different event to analyse in the individual assignment. 3214THS A2_Individual Case Analysis 3 | 6 P a g e s Task 1 (T1): Purpose of the Budgeting Process (10 marks- 500 words) 1. Explain the relationship between Responsibility Accounting, Budgeting and Control in the tourism and hospitality industry context. 2. Critically evaluate the role of financial, budgetary measures in the managers’ performance evaluation process. [Ensure to provide examples] NOTE: !!! ‼ This task 1 requires you to do academic research and provide references where appropriate. Task 2 (T2): Variance Analysis & Recommendations (20 marks – 500 words) 1. DATA: You must use the Excel file (data) which was provided under the A2: Individual Case Analysis Folder (See the 3214THS L@G/Assessments). 2. You have to show all calculations using the Excel functions (no typing) as demonstrated in the lecture and workshops and in the Excel recordings. 3. You must copy the Variance tables from Excel in your report. Clearly identify: 1. Case & Hotel & 2. Event Choice 1. Sales Revenues: i. Provide a two-level analysis for the events sales revenues. This analysis includes the calculations of the master budget variance, price variance and sales volume variance. [Provide a copy of your excel results-table in your report.] ii. Identify and explain potential reasons for the sales price and sales volume variance [Level 2 Analysis]. 2. Direct Material Costs: i. Provide a three-level analysis for the direct materials, the main ingredients for the Beverage and Food. This analysis includes the calculations of the master budget, flexible budget, inbetweener, master budget variance, the flexible budget variance, sales volume variance, the direct material price variance and efficiency variance. [Provide a copy of your excel results-table in your report.] ii. Identify and explain quantitative and potential qualitative reasons for the direct material cost variance and efficiency variances (3rd level of the analysis). iii. Reflect on recommendations how to address the variances, identified (2ii) by providing control measures to prevent these variances to occur. You need to discuss all favourable and unfavourable variances. 3. Profitability of Event: Comment on the profitability of the event i. Provide the actual and budgeted gross profit margins as well as the proportion of the Food and beverage percentages of total revenue for the actual and budgeted results. ii. Comment on the change in the profitability of your event and discuss how the variances affected it. 3214THS A2_Individual Case Analysis 4 | 6 P a g e s NOTE: ‼ In Excel, you must indicate whether each of the variances is favourable (in GREEN) or unfavourable (in RED) by using the colour coding. ‼ You must use the format provided in Excel and use formulas to show your workings. If you fail to comply with the instructions, penalties apply. Task 3 (T 3): Strategic Considerations (10 marks -500 words ) Copy the BSC from A1: Group Assignment in the appendix 1. Assess how all variances found in T2 (1ii) & (2ii) support or contradict the strategic objectives2 formulated in your strategic map from the A1: Group Assignment. 2. Discuss the implications from the variances T2 (1ii) & (2ii) for building a beneficial longterm customer relationship.
