Bachelor of Tourism and Hospitality
BTHM Management
2019-SEM2-THH3113 Cost and Performance Management for Tourism and Hospitality
Assessment Task 3: Group Assignment
Group Case study Analysis:
Assessment of the assignment is based on the adequacy and accuracy of the submitted assignment.
For all written work students must ensure that they submit their own original work. Any act of plagiarism will be severely penalised.
Students must:
• fully reference the source(s) of all material, even if you have re-expressed the ideas, facts or descriptions;
• acknowledge all direct quotations; and
• Not submit work that has been researched and written by another person.
There should be an overview of the assessment task and expectations of students to successfully complete the task. Groups will consist of Four (4) students and all students must contribute equally to the report. It should include the following:
Length: 4000 words
Date Due: Group Report Due Week 8
Weight: 40% - Group Report
As all marks will be shared equally amongst group members, any issues associated with group cohesion should be resolved initially within your group. Should these issues become insurmountable, you should notify your lecturer, in writing, immediately no later than week 7
Your work will be assessed in terms of the following criteria:
1. Effectiveness of communication – i.e. readability, legibility, neatness, completeness and presentation
2. Demonstrated understanding of the subject matter covered - This will be evidenced by your ability of submitted answers.
Certain aspects of these questions may require some assumptions to be made. Therefore, different answers are very acceptable. For ease of marking please specify these if you think it clarifies your decisions and responses.
Your assignment must be submitted into the Turnitin drop box on LMS.
THH3113 COST AND PERFORMANCE MANAGEMENT FOR TOURISM AND HOSPITALITY (2019 Sem 2)
Student
ID:
First
Name:
Last Name:
Case study:
Sunshine continental Hotel Pty Ltd. is hotel established in 1956 Sorento, Victoria near the Sorrento Ferries. They are well known for their seashore facing full serviced rooms. All their 325 rooms are one size thus they all have the same features, and that adds as an advantage among other competitors in the area
They are planning to open a new hotel in late 2019 adjacent, they want to be proactive and decide for any expenses that might be arising because of this new establishment. As a Revenue manager you are approached to evaluate factors affecting value perceptions in this industry.
Ben the owner is sure that you can help him to point out the cost drivers and evaluate management cost drivers that measure performance of the cost control and he would like to know where his business is using cost volume profit analysis
The extract of Sunshine continental Hotel Pty Ltd. is below which you should use for your analysis.
Profit and Loss Statement for Sunshine Continental Hotel for the year ended 30th June 2019
CURRENT
YEAR/ACTUAL YEAR BUDGETED
2018-2019 2018-2019
Income
Rooms sales $87,750.00 $97,500.00
total income $87,750.00 $97,500.00
Expenses
Bank charges $450.00 $350.00
Credit card commission $658.13 $731.25
Business insurance $770.00 $770.00
Marketing & Promotional $2,500.00 $1,750.00
Newspapers & magazines for customers $720.00 $600.00
Laundry/dry cleaning $665.00 $450.00
Cleaning & cleaning products $990.00 $800.00
Website Expenses $1,775.00 $1,775.00
Permanent employees wages $31,000.00 $31,000.00
Casual employee wages $17,500.00 $15,500.00
Superannuation $4,607.50 $4,417.50
Electricity/Gas $6,200.00 $5,800.00
Telephones $720.00 $720.00
Property Insurance $560.00 $560.00
General Repair & maintenance $2,100.00 $1,500.00
Waste removal charges $660.00 $660.00
Water charges $6,000.00 $5,600.00
Total Expenses $77,875.63 $72,983.75
Month Net Profit / (Loss) $9,874.38 $24,516.25
(YOU CAN ALSO DOWNLOAD THIS EXCEL FILE FORM THE LMS)
Analysis and Report (40 marks. Approximately 4000 words)
As a revenue manager you need to analyze and critically evaluate the following
1. Cost Measurement Analysis: (10 Marks)( 1000 words)
Critical appraise and evaluate management cost drivers that measure performance of the cost control (Briefly explain recommendation for the business on which one of these are the basic reason for the costs fluctuations)
2. Areas of Cost Control: (5 Marks)(1000 words)
Using the above extract Identify and evaluate cost control areas and recommend how they can control them in future
3. Variances performance analysis: (5 Marks) (500 words)
Perform a variance analysis on the following report and discuss about the variances in performance when compared to last year and budget.
4. Recommendation for Cost volume Profit analysis : ( 1500 words) (15 Marks) Recommend and explain to Ben what is cost volume profit analysis in detail and calculate the break even for the current hotel rooms and also recommend him his break even point ofr the rooms
5. Presentation with no errors is awarded 5 marks
(you can use Microsoft excel to work on your assignment and import it to Microsoft word when writing your report)