Assessment Submission details:

1. Please include following details on the top of your assessment:

• Your Name
• Your Student Id
• Your Trainer’s name
• Title of your Assessment
• Assessment Due Date
• Actual Submission Date

Please Note: Any changes in the assessment due date must be approved by your trainer.

2. This assessment can be hand written or in Microsoft word format. Following settings should be made for this assignment to keep consistency among all the assessments:

Body text	Page setup
·         Font: Times New Roman Font size: 12 point Line spacing: Double Text style: Normal	·         Top: 2.54 cm Bottom: 2.54 cm Left: 3.17 cm Right: 3.17 cm Header: 1.25 cm Footer: 1.25 cm

3. If hand written assessments are submitted, hand writing needs to be clear and legible.
4. Do not forget to attach the Cover Sheet at the front of the assessment.
5. Make sure you have signed the Cover sheet to declare this is your own work.
6. You can e-mail this assessment to your trainer’s e-mail address with following details:

In ‘subject’ mention your ‘student Id – Your name’.

Achieving Competence:

To be deemed competent in this assessment you must:

• Correctly address all of the assessment requirements as described in this task
• Correctly address all of the submission instructions
• Successfully complete the Assessment Questions
• Submit assessment on or before the due date with an assessment cover sheet

Assessment description:

Your trainer will provide you with or arrange for financial data to prepare a budget for a business relevant to your course stream and/or area or training/workplace for a specific period, e.g. a quarter, six months or as relevant.

Based on the type of budget and data provided to you, you are required to:

1.Consult with the relevant staff directly affected by the budget (Department heads, e.g. head-chef, events manager etc.) on the components to be included in the budget. This requires a written report of the details that were discussed including a detailed analysis of the factors that impact on the particular budget.

After consultation with the accurate staff directly implicated by the budget for the function of graduation. Entire staffs agreed mainly on involving the given components:

1. The entire budget needed
2. The budget of food
3. The budget of alcohol and beverages
4. The budget of decoration
5. Budget of equipment and tools
6. The budget for selecting accurate location
7. Budget for wireless stand of mic and mic (Elbe & Peters, 2016)

2.Following your consultation, you are required to complete a draft budget which reflects the details you have provided in your report.

Actual Budget of Restaurant	July	Percentage (%)	August	Percentage (%)	September	Percentage (%)
Total Revenue	$187712	100	$178545	100	$187544	100
Total Revenue of Food	$144794	77.1	$141515	79.3	$157584	84
Total Revenue of Beverage	$42918	22.9	$37030	20.7	$29960	16
Cost of Food Sales	$46892	32.4	$41675	34.4	$45678	29
Cost of Beverage Sales	$13267	30.9	$10947	36.9	$9785	32.7
Gross Profit on Sales	$127553	68	$125923	65	$132081	70.4
Salaries and Wages – Preparation	$15978	8.5	$15789	8.7	$23098	12.3
Salaries and Wages – Service	$18745	10	$18426	10.2	$26423	14.1

3.Present the draft budget to the staff you consulted on the budget components. Provide details of feedback and changes that were requested. This needs to include the why’s and how’s.

Feedback	Changes	Final verdict
At around 40%, budget of food is too low for the amount of individuals invited for the function	The budget of food must be maximized to 50%	Agreed
Wages of staff are not involved	The wages of staff must be involved at $250 each staff	Agreed
Various kinds of ingredients are not included	The end budget must involve entire different kind of ingredients that include: 1. Platters of fruit 2. Spiced Tuna 3. Platter of mezze 4. Beef	Agreed
Budget of linen cleaning	Budget of linen cleaning must be involved which must be at $250	Agreed
Covers of chairs are essential	They must be involved at $350	Agreed
Décor of table is essential (Elbe & Peters, 2016)	Must be involved at $450	Agreed

 4.Based on the feedback received, complete the final budget. Obtain approval of the relevant department head(s), financial officer or person in charge of the organisation. Attach a copy and the signed, approved budget.

Actual Budget of Restaurant	July	Percentage (%)	August	Percentage (%)	September	Percentage (%)
Total Revenue	$187712	100	$178545	100	$187544	100
Total Revenue of Food	$144794	77.1	$141515	79.3	$157584	84
Total Revenue of Beverage	$42918	22.9	$37030	20.7	$29960	16
Cost of Food Sales	$46892	32.4	$41675	34.4	$45678	29
Cost of Beverage Sales	$13267	30.9	$10947	36.9	$9785	32.7
Gross Profit on Sales	$127553	68	$125923	65	$132081	70.4
Salaries and Wages – Preparation	$15978	8.5	$15789	8.7	$23098	12.3
Salaries and Wages – Service	$18745	10	$18426	10.2	$26423	14.1

5.Monitor the budget against performance at intervals as instructed, this may be e.g. weekly or monthly and include the relevant reports and actions taken for each review during the budget cycle.

Answer

The meeting was conducted and in the meeting, the discussion was done. Some of the actions which were taken at every review during the cycle of budget are-

During the holiday season, the decision is taken to rent more cars and hire extra employees to decrease the workload (ARARSA, 2021).

There is also a need to make adjustments in the budget because there is a need for significant financial expenditure and over the holiday season improve the performance of the Hotel Futura (Riauan, et al., 2022). 

Actual Budget of Restaurant	July	Percentage (%)	August	Percentage (%)	September	Percentage (%)
Total Revenue	179,564	100.0	170,539	100.0	173,607	100
Total Revenue of Food	144,097	80.2	146,047	85.6	149,657	86.2
Total Revenue of Beverage	35467	19.8	24,493	14.4	23,950	13.8
Cost of Food Sales	55,045	38.2	52,138	35.7	55,373	37
Cost of Beverage Sales	5,948	25.0	6,123	25.0	5,987	25
Gross Profit on Sales	118571	66	112278	65.8	112247	64.7
Salaries and Wages – Preparation	19,545	11.6	21,555	12.6	18,818	10.8
Salaries and Wages – Service	37,609	22.4	39,325	23.1	35,398	20.4

Findings	Months	Forecasted figures	Actual figures	Variance              (favourable or Unfavourable)
Total Revenue	July	1,87,712	1,79,564 (95.7%)	unfavorable, nearby same restaurant is opened.
Salaries and Wages – Preparation	July	15,978	19,545 (81.7%)	unfavorable, professional chefs are hired many
Cost of Food Sales	August	41,675	52,138 (79.9%)	unfavorable, non-seasonable products are used too much
Cost of Beverage Sales	August	10,947	6,123 (55.9%)	favourable
Salaries and Wages – Service	September	15,761	35,398 (44.5%)	unfavorable, so many staff members are hired (ARARSA, 2021).

6.Each change actioned taken as a result of underperformance must be documented and signed by the authorised person in the workplace or where the budget is monitored in a simulated environment, by your trainer.

Answer

Some of the changes actioned which have been taken as the underperformance results are-

1) July total revenue: the nearby same restaurant is opened.

2) Preparation of Salaries and Wages in July: professional chefs are hired many

3) Cost of Food Sales: non-seasonable products are used too much

4) Service of Salaries and Wages: so much staff is hired

5) Items that are non-included: there is a need to ensure that all the requirements are to be considered by the staff before draft budget submission (Guzmán, 2022).

7.On completion of the budget cycle, provide a summary report for the budget performance. What are your recommendations for the next cycle based on your monitoring and reviews? Why?

Answer

Summary report

The consultation was done in a meeting with the people who were directly affected by the budget like the head chefs of the hotel future, events managers, and heads of departments. In the discussion, some of the components were discussed which can be included in the budget.

The budget has not performed as expected. The decision which was taken not of them were unfavorable.

1. Total revenue was unfavorable.
2. Preparation was salaries and wages were also not matched. It has exceeded more than forecasted.
3. Services of salaries and wages were also exceeded.

Recommendations

For the next year cycle as per the reviews and monitoring, some of the things which can be considered are-

1. To meet the total revenue there is a need to re-evaluate the demand for the ingredients as the next door new similar restaurant has opened.
2. To meet the salaries and wages services there is a need to hire more student workers or junior workers.
3. To meet the cost of sales, products that are more seasonal will be used.
4. To meet the services of salaries and wages, during the low season staff will be minimized (Nasri, et al., 2022).

Reference

ARARSA, H. (2021). ASSESSMENT OF BUDGET UTILIZATION AND CONTROL (A CASE OF ETHIO AGRI-CEFT PLC (Doctoral dissertation, ST. MARY’S UNIVERSITY).

Bernard, D., Ge, W., Matsumoto, D., & Toynbee, S. (2021). Implied Tradeoffs of Chief Financial Officer Accounting Expertise: Evidence from Firm-Manager Matching. Management Science, 67(9), 5776-5799.

Elbe, M., & Peters, S. (2016). Die Temporäre Organisation. Springer Berlin Heidelberg.

Guzmán, J. P. M. (2022). Is performance information used under performance budgeting? A systematic review. International Journal of Public Sector Performance Management, 9(3), 284-302.

Nasri, H., Nurman, N., Azwirman, A., Zainal, Z., & Riauan, I. (2022). Implementation of collaboration planning and budget performance information for special allocation fund in budget planning in the regional development planning agency of Rokan Hilir regency. International Journal of Health Sciences (IJHS) Ecuador, 6(S4), 639-651.