Assessment 2 - Summative Assessments
The summative assessments are the major activities designed to assess your skills, knowledge and performance, as required to show competency in this unit. These activities should be completed after finishing the Learner Guide. You should complete these as stated below and as instructed by your trainer/assessor.
Skills, knowledge and performance may be termed as:
? Skills – skill requirements, required skills, essential skills, foundation skills
? Knowledge – knowledge requirements, required knowledge, essential knowledge, knowledge evidence
? Performance – evidence requirements, critical aspects of assessment, performance evidence.
Section A: Skills activity
The skills activity is designed to be a series of demonstrative tasks that should be assessed by observation (by the assessor or third party, depending on the circumstances).
It will demonstrate all of the skills required for this unit of competency – your assessor will provide further instructions to you, if necessary.
Section B: Knowledge activity (Q & A)
The knowledge activity is designed to be a verbal questionnaire where the assessor asks you a series of questions to confirm your competency for all of the required knowledge in the unit of competency.
Section C: Performance activity
The performance activity is designed to be a practical activity performed either in the workplace or a simulated environment. You should demonstrate the required practical tasks for the unit of competency and be observed by the assessor and/or third party, as applicable to the situation. If the third party is required to observe you, you will need to make the required arrangements with them.
If necessary, for the activities, you should attach completed written answers, portfolios or any evidence of competency to this assessment
Section A: Skills activity (Case Study)
Objective: To provide you with an opportunity to show you have the required skills for this unit.
A signed observation by either an approved third party or the assessor will need to be included in this activity as proof of completion.
This activity will enable you to demonstrate the following skills:
? Reading skills
? Writing skills
? Oral communication
? Numeracy skills
? Problem-solving skills
? Teamwork skills
? Technology skills
Case study A
The Jackson hotel has a bistro, two bars (public and sports), a drive-through and walk-in bottle shop and TAB situated beside the sports bar.
You are the manager of JJ’s Bistro. It seats 210 people and is open for lunch and dinner, seven days a week. The hotel promotes a family environment and has a playroom for younger children and an activity centre for pre-teens containing electronic and other games. These glasses walled areas are within view of customers seated in the rear section of the bistro.
The hotel’s management team develop an operational budget for the business based on previous budgets, anticipated business and any special projects, such as renovations or new products. Each operational area within the hotel is given a departmental budget based on organisational goals and their anticipated revenue and expenses.
Budgets are developed on a quarterly basis. Each department has quarterly and monthly budget targets. Monthly budgets can be adjusted during a quarterly cycle if circumstances within the department change.
The following events have taken place during the April budget period.
? Prices for meat, fruit and vegetables have increased as a result of recent drought in some regions and floods or storms in others.
? Prices for many wines have fallen due to a surplus in the market.
? Beer prices have risen slightly, again due to the drought leading to shortages of ingredients and an increase in government taxes.
? A major wine supplier has been running an in-house promotional campaign, with staff product knowledge training provided to help increase sales.
? The bistro menu changes to the new winter menu on May 1st. Its introduction is being promoted in April throughout the hotel.
Task 1: Monitor budgets
? Review the Jackson Hotel operational budget – June quarter.
? Answer all questions based on the contents and outcomes of the Jackson Hotel operational budget – June quarter listed below
Jackson Hotel operational budget – June quarter
April May June June quarter
$ $ $ $
Revenue
Food sales 116,800 127,750 120,450 365,000
Beverage sales 240,000 247,500 262,500 750,000
Tab commission 49,300 47,850 47,850 145,000
Total revenue 406,100 423,100 430,800 1,260,000
Cost of sales
Food purchases 48,180 49,640 48,180 146,000
Beverage purchases 84,000 86,625 91,875 262,500
Total cost of sales 132,180 136,265 140,055 408,500
Gross profit 273,920 286,835 290,745 851,500
Expenses
Accounting 2,700 3,000 4,300 10,000
Advertising/promotions 3,900 4,810 4,290 13,000
Bank charges 7,582 7,359 7,359 22,300
Cleaning contractor 7,451 7,451 7,451 22,354
Commission credit card 767 767 767 2,300
Small equipment replacement 833 833 833 2,500
Insurance 1,833 1,833 1,833 5,500
Laundry 347 357 347 1,050
Legal fees 1,280 360 360 2,000
Licence fees & permits 983 983 983 2,950
Motor vehicle expenses 500 500 500 1,500
Maintenance 4,224 4,352 4,224 12,800
Printing & stationery 800 800 800 2,400
Rubbish removal 500 500 500 1,500
Communication 2,000 2,000 2,000 6,000
Training & development 1,190 1,155 1,155 3,500
Wages & on-costs 193,050 198,900 193,050 585,000
Utilities 12,000 11,647 11,647 35,295
Total expenses 241,941 247,608 242,400 731,449
NET PROFIT 31,979 39,227 48,345 120,051
Q1: List the hotel’s financial commitments under their correct cost category. Name at least two commitments for each category (2.2)
? Variable direct costs
? Food purchases
? Beverage purchases
? Wages & on-costs
? Variable indirect costs
? Legal fees
? Bank charges
? Fixed indirect costs
? Insurance
? Rubbish removal

Q2:
Name the top four cost categories the business has allocated the most funds too in this budget period.
? Food purchases
? Beverage purchases
? Wages & on-costs
? Utilities
Q3: Why have significant funds been allocated to these categories?
Discuss their importance to the business and consequences if inadequate funds are allocated.
Q4: Using the same Course file Jackson Hotel operational budget review the Bistro departmental budget – April.
You are holding a team meeting to discuss the financial targets provided in the organisational and April bistro budgets.
What information do you need to communicate to the team to ensure they understand the targets and goals to be achieved?
Q5: What techniques can you use to promote awareness of methods of controlling costs or increasing sales so you can achieve budget targets?
Task 2: Calculate variances
• Review the comparative analysis report for the Bistro departmental budget
• Complete the comparative analysis report for the Bistro departmental budget – April by calculating all missing dollar value and percentage variances.
• Complete the Favourable/Unfavourable column by indicating if the budget results are favourable (F) or unfavourable (UF) for the business.
Assessment 2
Comparative analysis report
Bistro departmental budget – April
• Don’t forget to round your figures up or down to the nearest whole number.
April Favourable / Unfavourable May June quarter
Budget Actual Variance Variance Budget Budget
$ $ $ % $ $
Revenue 14,716.8 / 105,120 x 100
Food sales 105,120 119,837 14,716.80 14.0% - 114,975 328,500
Beverage sales 89,250 96,390 7,140.00 - - 91,875 262,500
Total sales 194,370 216,226 21,857 - - 206,850 591,000
Cost of sales
Food purchases 40,953 45,048 - - - 42,194 124,100
Beverage purchases 27,563 30,043 (2,481) (9.0%) - 26,775 78,750
Total cost of sales 68,516 75,091 (6,576) - - 68,969 202,850
Gross profit 125,855 141,135 - 12.1% - 137,881 388,150
Expenses
Advertising/Promotions 780 624 156 20.0% - 962 2,600
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Assessment 2
Cleaning contractor 1,490 1,490 - 0.0% - 1,490 4,471
Small equipment replacement 333 393 (60) - - 333 1,000
Laundry 245 232 13 - - 245.00 735
Maintenance 1,493 1,262 - 15.5% - 1,493.33 4,480
Printing & stationery 160 195 - (22.0%) - 160.00 480
Training & seminars 408 653 (245) (60.0%) - 396 1,200
Wages & on-costs 85,901 98,771 (12,870) 89,345 260,763
Utilities 3,441 3,235 206 6.0% - 3,494 10,589
Total expenses 94,251 106,855 - 13.4% - 97,919 285,857
NET PROFIT 31,604 34,281 - - -
Kingsford International Institute |CRICOS: 03689D RTO: 45363 Jan 2020 v1.0 14

Task 3: Question and answer
Answer all questions based on the budget outcomes in the completed April budget comparative report in Task 2 and case study information.
Q1:
Are there any significant variances in the sales figures that you should be concerned about? Explain what the results indicate and why you are/are not concerned about them.
Q2:
Are there significant variances in any of the expenses categories that you think should be investigated further? If yes, discuss which categories and why you think they need investigation. If no, discuss why the deviations do not warrant investigation.
Q3:
Based on your responses to questions 1 and 2, what is your overall evaluation of the budget results? Is the bistro meeting its financial targets?
Q4: Which expense category has the most funds allocated to it? Explain why it is important you manage costs in this category carefully.
Section B: Knowledge activity (Q & A)
Objective: To provide you with an opportunity to show you have the required knowledge for this unit.
The answers to the following questions will enable you to demonstrate your knowledge of:
? Types of financial records:
o bank deposit documentation o bank statements o banking summaries
o business activity statements o cheque books
o credit card transaction statements
o invoices o journal entries o labour and wages reports o merchant statements o merchant summaries o transaction reports ? Types of budgets: o cash budgets o cash flow budgets o departmental budgets o event budgets o project budgets o purchasing budgets o sales budgets o wage budgets
o whole of organisation budgets
? Factors for consideration in the preparation of financial and statistical reports:
o cash flow
o commercial account activity o commission earnings o covers and financial return o daily, weekly and monthly transactions
o expenditure
o income
o occupancy rates and financial return
o performance of department, project and/or products and services o sales performance o sales returns o staff costs o stock levels
o variance in income and/or expenditure
o wastage o yield
? Use, contents of and formats for:
o budgets
o financial reports o statistical reports
? Budget terminology
? Specific industry sector and organisation:
o use of budgets to control costs and enhance profitability
o importance of budget control
o techniques for maximising budget performance o financial reporting procedures and cycles
o features and functions of accounting software programs used to manage budgets
Answer each question in as much detail as possible, considering your organisational requirements for each one.
1. In your own words, explain what each of the following financial records show:
? Invoices
? Labour/wage reports
? Credit card transaction statements.
2. Explain why having dedicated budgets for specific departments and projects can be useful (as opposed to only relying on a budget for the whole organisation).
3. Why is it important to consider sales performance when monitoring budgets and preparing financial reports?
4. What information is contained in the following document types:
? Budgets ? Financial reports
? Statistical reports?
5. Explain what the following budgetary terminology means:
? Revenue
? Financial commitment
? Debt.
6. Why is it important to promote budget control, and how can this enhance the overall profitability of your organisation?
Section C: Performance activity
Objective: To provide you with an opportunity to demonstrate the required performance elements for this unit.
A signed observation by either an approved third party or the assessor will need to be included in this activity as proof of completion.
This activity will enable you to demonstrate the following performance evidence:
? Manage a budget for a business over a three-month period that meets the specific business’ needs
? Undertake at least two of the following to inform management of the above budget: o discussions with existing suppliers
o evaluation of staffing and rostering requirements o evaluation of impact of potential roster changes o review of operating procedures o sourcing new suppliers
? Monitor income and expenditure and evaluate budgetary performance over the above budgetary life cycle
? Complete financial reports related to the above budget within designated timelines and using correct budget terminology
Answer the activity in as much detail as possible, considering your organisational requirements.
As a workplace activity or simulated workplace activity (as directed by the assessor):
PART 1
Case study B
JJ’s Bistro is located in Jackson’s hotel. It seats 210 people and is open for lunch and dinner, seven days a week. The hotel promotes a family environment and has a playroom for younger children and an activity centre for pre-teens containing electronic and other games. These glass-walled play areas are within view of customers seated in the rear section of the bistro.
The following events took place during the May budget period.
? Prices for meat, fruit and vegetables have increased as a result of recent drought in some regions and floods or storms in others.
? Prices for many wines have fallen due to a glut in the market.
? Beer prices have risen slightly, again due to the drought leading to shortages of ingredients and an increase in government taxes.
? Most utility companies increased prices by 7% at the start of May.
? The local police started a blitz on drink driving in the middle of May with increased police presence in local suburbs and roadside testing of drivers.
? In-house training was provided to key food and beverage staff in April by a coffee supplier. The aim is to increase sales and the quality of coffee served. The training was free of charge as part of a new preferred supplier contract with the coffee supplier.
? A major wine supplier has been running an in-house promotional campaign, with staff training provided to help increase product knowledge.
? The bistro menu changed to the new winter menu on 1 May 20XX. It was heavily promoted in May throughout the hotel and in local community newspapers.
Task 1: Interpret budget results
Review the Bistro department May budgets.
Evaluate the budget outcomes and their impact on the operation and financial goals of the bistro.
Answer all questions based on the outcomes in the comparative analysis report, Bistro purchasing budget – May and the case study information.
Comparative analysis report
Bistro departmental budget – May
May
Budget Actual Variance Variance
$ $ $ %
Revenue
Food sales 114,975 112,676 (2,299) (2)
Beverage sales 91,875 90,497 (1,378) (1.5)
Total sales 206,850 203,173 (3,677) (1.8)
Cost of sales
Food purchases 42,194 45,864 (3,671) (8.7)
Beverage purchases 26,775 29,399 (2,624) (9.8)
Total cost of sales 68,969 75,265 (6,294) (9.1)
Gross profit 137,881 127,908 (9,973) (7.2)
Expenses
Advertising/Promotions 962 981 (19) (2)
Cleaning contractor 1,490 1,490 - 0
Small equipment replacement 333 288 46 13.7
Laundry 245 237 8 3.2
Maintenance 1,493 1,329 164 11.0
Printing & stationery 160 114 46 29.0
Training & seminars 396 713 (317) (80.0)
Wages & on-costs 89,345 103,283 (13,938) (15.6)
Utilities 3,494 3,456 38 1.1
Total expenses 97,766 111,891 (14,125) (14.4)
NET PROFIT 40,115 16,017 (24,098) (60.1)
Bistro purchasing budget – May
May
Budget Actual Variance Variance
$ $ $ %
Food purchases
Fruit & vegetables 5,063 5,970 (906) (17.9)
Dairy products 8,439 8,177 262 3.1
Meat & poultry 14,768 17,662 (2,895) (19.6)
Fish & seafood 4,219 4,506 (287) (6.8)
Dry goods – food 7,595 7,511 84 1.1
Dry goods – other 2,110 2,038 72 3.4
Total food purchases 42,194 45,864 (3,670) (8.70)
Beverage purchases
Wine 4,820 5,359 (540) (11.2)
Spirits 4,016 4,185 (169) (4.2)
Beer, ciders – packaged 5,891 6,762 (872) (14.8)
Beer – keg 4,552 5,162 (610) (13.4)
Soft drinks, juices – packaged 3,079 3,230 (151) (4.9)
Post mix 4,418 4,701 (283) (6.4)
Total beverage purchases 26,776 29,399 (2,625) (9.8)
Total cost of sales 68,969 75,265 (6,294) (9.1)
Food cost % 36.7% 40.7%
Beverage cost % 29.1% 32.5%
Cost of sales % 37% 33.3%
Q1: Discuss how the outcomes food and beverage sales and costs of sales indicated in the May comparative analysis report impact the bistro area and the business overall. Consider the types of deviation (positive or negative) and size of the deviations in food, beverage and total sales and cost of sales categories.
Q2:
What are two possible explanations for the deviations in food costs and beverage costs? Consider information provided in the May purchasing budget as well as the comparative report and case study information.
Q3:
When preparing the budgets, the hotel forecasted food costs as 37% of food sales and beverage costs as 30% of beverage sales.
Is the bistro meeting organisational goals for cost of sales? What is the difference between the budget target and actual results?
Q4:
Should these deviations be reported to management? Explain why/why not.
Q5: Based on the May purchasing budget, in what categories are the largest food and beverage cost deviations occurring?
Task 2: Investigate option to improve performance
The food and beverage manager is very concerned about the food and beverage purchasing and cost of sales results. They want the bistro team to make it a priority to meet budget targets for cost of sales in June. Management then plan to reduce budget allocations for food and beverage purchases in the September quarter budget. It is an organisational goal to reduce cost of sales to below the current percentages of 37% food cost and 30% beverage cost. To meet June and September quarter budget targets, new methods of managing costs must be investigated.
Go to your Course files folder and open Bistro May budgets.
Answer all questions based on the outcomes in the comparative analysis report Bistro departmental budget – May, Bistro purchasing budget – May and case study information.
Q1:
List four options for managing costs that could be applied to this situation.
Q2:
You have decided to source new fruit and vegetable and seafood suppliers. Describe how you would investigate if changing suppliers is a viable option for reducing your cost of sales. How will you obtain information to determine if prices and product quality from alternate suppliers are appropriate for your operation?
Q3:
You need to investigate which current suppliers have increased prices for products and services, how much prices have risen and how much of the business’s financial resources are allocated to existing suppliers.
What organisational financial documentation will provide this information?
Q4: Your research has revealed that a number of other suppliers can supply similar quality items at cheaper prices than your current supplier. Describe what you would discuss with your current supplier before making a decision.
Q5: Who would you consult with before implementing any changes to the hotel’s suppliers of fruits and vegetable and seafood products?
Task 3: Improve budget performance
? Review the Bistro labour budget – June quarter.
? Evaluate their impact on the operation and financial goals of the bistro.
? Answer all questions based on the labour comparative analysis report, staffing and case study information.
Assessment 2
Bistro labour budget – June quarter
Labour expenses April May June June Quarter
Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual Variance
$ $ % $ $ % $ $ % $ $ %
Total salaries 9,780 9,780 0 9,780 9,780 0 9,780 9,780 0 29,340 29,340 0
Total front of house staff 45,053 52,171 (15.8) 47,382 55,105 (16.3) 44,804 51,260 (14.4) 137,239 158,537 (15.5)
Total kitchen staff 21,864 26,237 (20.0) 22,610 27,332 (20.9) 21,770 26,232 (20.5) 66,244 79,801 (20.5)
Total wages & salaries 76,697 88,188 (15.0) 79,772 92,217 (15.6) 76,354 87,272 (14.3) 232,823 267,67
8 (15.0)
On-costs 9,204 10,583 9,573 11,066 9,162 10,473 27,939 32,121 (15.0)
Total labour expenses 85,901 98,771 (15.0) 89,345 103,283 (15.6) 85,516 97,745 (14.3) 260,76
2 299,79
9 15
Percentage of total sales 44.19 50.82 43.19 49.93 45.06 51.50 14.47 16.5
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Q1: Complete the table below by inserting the variance percentage for each category in each month.
Category Bis tro labour budget – variance percentage
April May June June quarter
Salaries
Front of house
Kitchen
Total labour
Q2: What do these statistics tell you about the bistro’s performance for the June quarter? Explain what the variances mean and how this affects the department’s ability to meet its financial goals.
Q.3 Management think one reason for high bistro labour costs is the department is consistently overstaffed; more staff than necessary are rostered on for most service periods. Rosters have been reviewed and new staffing levels suggested for front of house and kitchen areas. The number of customers served and sales revenue is expected to remain relatively stable in the near future.
Review the bistro’s current and revised staffing levels in Bistro staffing levels table in Bistro May budgets.
Assessment 2
No. staff Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Front house Crnt Rvsd Crnt Rvsd Crnt Rvsd Crnt Rvsd Crnt Rvsd Crnt Rvsd Crnt Rvsd
Supervisor 2 0 0 1 1 2 2 2 2 2 2 2 2 1 1
Food Attendant FT 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2
Food Attendant Cas 10 2 1 2 1 3 1 4 2 6 4 8 6 7 6
Bar Attendant FT 3 1 1 2 2 2 2 2 2 3 3 3 3 2 2
Bar Attendant Cas 4 2 1 1 0 1 0 1 1 2 1 2 1 2 1
Bus person Cas 2 1 1 2 1 2 1
Total rostered 8 6 8 6 10 7 11 9 16 13 19 15 16 13
Kitchen
Chef 1 1 1 1 1 1 1 1 1 1
Sous chef 1 1 1 1 1 1 1 1 1 1 1
Cooks FT 3 2 2 2 2 2 2 2 2 2 2 3 3 3 3
Apprentices FT 3 1 1 1 1 1 1 1 1 2 2 3 3 3 3
Kitchen hand Cas 4 1 1 1 1 2 1 2 2 3 1 3 1 3 2
Total rostered 5 5 5 5 6 5 7 7 9 7 11 9 10 9
Bistro staffing levels
Glossary
Crnt
Rvsd
Current staffing level
Revised staffing level FT Fulltime employee
Cas Casual employee
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Q3: Discuss the impact these changes could have on customer service levels, your team and budget targets. Consider both positive and negative outcomes.
Q4:
What payroll documentation can you use to maintain detailed records and monitor funds allocated to labour costs during the budget period?
Q5:
During the initial investigation phase, with whom would you discuss the reasons for changes to rosters and the desired outcomes of the changes?
Q6: You believe the changes will have a negative impact on customer service standards and food quality, leading to an increase in customer complaints. This could lead to lower customer numbers and sales revenue over the next year.
You want to present your concerns to management and recommend smaller cuts to staffing levels, especially to the front of house team during the busiest periods. Your suggestions include better management of hours worked by casual staff and a review of service procedures to streamline work practices.
Prepare a transcript of your recommendations to be presented to management at the next management meeting.
PART 2
Case study C
It is the end of the June financial quarter and all departments in the Jackson’s hotel are preparing financial and statistical reports.
Task 1: Prepare a profit and loss statement
Review the Bistro profit and loss statement
1. Complete the Bistro profit and loss statement – June quarter by calculating all missing dollar value and percentage variances.
Assessment 2
Bistro profit and loss statement – June quarter
Monthly actual results June quarter actual results
May June July Budget Actual Variance Variance
$ $ $ $ $ $ %
Revenue
Food sales 119,837 112,676 110,356 328,500 342,869
Beverage sales 96,390 90,497 84,630 262,500 271,517
Total sales 216,227 203,172 194,986 591,000 614,385
Cost of sales
Food purchases 45,048 45,865 42,174 124,100 133,087
Beverage purchases 30,043 29,399 23,827 78,750 83,269
Total cost of sales 75,091 75,264 66,001 202,850 216,356
Gross profit 141,135 127,909 128,986 388,150 398,029
Expenses
Advertising/Promotions 624 981 884 2,600 2,489 111 4.3
Cleaning contractor 1,490 1,490 1,490 4,471 4,471 0 0
Small equipment replacement 393 288 372 1,000 1,053 (53) (5.3)
Laundry 232 237 283 735 751 (16) (2.2)
Maintenance 1,262 1,329 1,314 4,480 3,905 575 12.8
Printing & stationery 195 114 145 480 454 26 5.4
Training & seminars 653 713 519 1,200 1,884 (684) (57)
Wages & on-costs 98,771 103,283 97,745 260,762 299,799 (39,037) (15)
Utilities 3,235 3,456 4,190 10,588.50 10,881 (292) (2.8)
Total expenses 106,855 111,890 106,942 285,857 325,687
NET PROFIT 34,281 16,018 22,044 102,293 72,343
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Task 2: Prepare a statistical report
? Complete the Trend analysis report – June quarter using the information provided.
? Save the completed reports locally and submit to your assessor once completed.
Assessment 2
Trend analysis report – June quarter
Monthly actual results Comparison to previous June quarters
May June July June quarter – current June quarter –
200X June quarter –
20XX Variance 200X to current Variance
20XX to
200X
V % V % V % $ $ $ % %
Revenue
Food sales 14.0 (2) 1.8 328,500 286,781 256,955 12.7 10.4
Beverage sales 8.0 (1.5) 4 262,500 228,638 208,975 12.9 8.6
Total sales 11.2 (1.8) 2.7 591,000 515,418 465,930 9.6
Cost of Sales
Food purchases (10.0% (8.7) (6.2) 122,859 106,273 96,602 9.1
Beverage purchases (9) (9.8) 2.4 78,750 66,229 60,732 15.9 8.3
Total cost of sales (9.6) (9.1) (2.9) 201,609 172,502 157,334 14.4 8.8
Gross profit 12.1 (7.2) (2.7) 389,391 342,916 308,596 11.9
Expenses
Advertising/Promotions 20 (2.) (3) 2,600 2,275 2,025 12.5 11
Cleaning contractor 0 0 0 4,471 3,845 3,230 14 16
Small equipment replacement (18) 13.7 (11.6) 1,000 890 829 11 6.9
Laundry 5.5 3.2 (15.4) 735 642 581 12.6 9.6
Maintenance 15.5 11 12 4,480 3,754 3,274 16.2 12.8
Printing & stationery (22) 29 9.2 480 453 425 5.6 6.1
Training & seminars (60) (80) (31.0) 1,200 1,062 1,017 11.5 4.2
Wages & on-costs (15) (15.6) (14.3) 260,762 219,822 200,698 15.7 8.7
Utilities 6 1.1 14.7 10,589 8,661 7,674 18.2 11.4
Total expenses 13.4 14.4 (13.8) 286,316 241,405 219,752 9.0
NET PROFIT 8.5 (60.1) (30.4) 103,075 101,511 88,844 1.5%
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Task 3: Prepare a management report
1. Prepare a short report to management outlining the following information.
? Positive and negative budget variations indicated in monthly and quarter analysis reports and profit and loss statement that are significant enough to affect the operation of the bistro and its profitability.
? Trends identified in the trend analysis report that have the potential to affect the bistro’s profitability in the immediate future.
? Possible reasons for the positive or negative variations and trends.
? Any recent actions that have been taken or changes to operational procedures as a result of trends and deviations.
Base the report on the following information.
? Profit and loss statement
? Trend analysis report
? April, May and June comparative analysis reports
? Case study information provided in the assessment 2
? Your responses to all questions in this assessment
The report should present information in a clear, concise and easy to understand manner so it supports good decision-making processes.