Report 1

The owner of the business asked to do analysis on the basis of financial performance. He
asked to take favorable and non-favorable items into consideration so to know how were
the actual performance against the budget and the past performance of the restaurant (last
quarter budget).

According to the analysis done on basis of business financial performance, it can be clearly
seen that the actual Food sales increased by 8.41% as compared to its budget and it was
15.19% much better as compared to its last quarter average. Whereas, the Beverage sales
increased by 8.85% as compared to its budget and it was 15.36% much better as compared
to its last quarter average. If we talk about actual Functional sales it was increased by
18.97% as compared to its budget and it was 21.37% good as compared to its last quarter
average.

As per the analysis done on basis of business financial performance, it’s clear that the actual
Food cost reduced by 22.31% as compared to its budget and it was 23.01% more bad as
compared to its last quarter average. Whereas, the actual Beverage cost reduced by 31.95%
as compared to its budget and it was 33.29% more worst as compared to its last quarter
average. Coming to actual Wages cost, it was reduced by 2.91% as compared to its budget
and it was 3.36% more worst as compared to its last quarter average.

On the basis of analysis done, the recommendations that were made in regards with non-
favorable items. The first recommendation was Renegotiate prices with your supplier
because it could help I n securing better price and also in maintaining profitability. Another
one was Sourcing New supplier which can help in updating with new products which can
result in increase in sales. Moreover, new supplier always gives the best price and it could
also provide with negotiation power with old supplier. Last but not the least
recommendation was for wage cost that try to hire young age staff because it could help in
reducing labor cost as we have to pay less wages to young staff as compared to others.
 REPORT 2
This Report is written to do an analysis of financial performance. Since last two months of
the quarters have been finished, now it’s easy to analysis the entire quarter performance
against the budget that was already planned. This report will also include the October
recommendation how they worked and December end variations also been discussed in this
report that how it went. Moreover, the reasons for continuous budget variations and area
of improvements will also be included in this report.

As in October month the variation of food cost and beverage cost was -23.01% and -33.29%
respectively. So the recommendations that were made in relation to food and beverage cost
were that renegotiate with supplier, Outsourcing new supplier which could actually benefit
the business. So as per the recommendations, the final results that we achieved are for the
Food cost in November it went to -14.88% but in December it went to -4.56% which is
actually very good. Whereas the Beverage cost it was -19.01% in November and in
December it went up to 10.58% which shows that recommendations worked very well for
them.

Third but not last the Wage cost it was down to -3.36% in October and after the
recommendations made that to hire the young staff to reduce labour cost, the final results
that we achieved were amazing. The Wage cost in November was -3.37%, it was increased
bit because we hired new members and for their training it cost some expense but later on
in December the wage cost came down to -0.66% which is very beneficial for the company.
So all in together the recommendations worked really well for all of them.
 REPORT 3
This main purpose of this report is to letting know that the budget was created for the
quarter and it was implemented but didn’t work out for the actual performance of the
budget. The actual vs budget was not how it was expected and the owners understand that
key performance was not there. Now they wanted to do a proper research and identify
some of the budget management approaches for them for financial management. So in this
report we will be discussing different approaches along with their advantages,
disadvantages, impact on customers so that it could be easy to choose right approach that
could be used.

Budget management- Budget management is the process of managing and tracking income
and expenses. Companies often have budgets for individual departments as well as an
overall company budget. It is important to have budget management because it helps you
control your spending, track your expenses, and save more money. Additionally, budgeting
can help you make better financial decisions, prepare for emergencies, get out of debt, and
stay focused on your long-term financial goals. There could be different budget
management approaches that could be used such as Reducing cost, Reducing staff,
reviewing operating procedures.

Reducing cost- Cost reduction is a process usually used by many companies to cut down
their costs and increase their bottom line.

The advantage of reducing cost is saving money but

The disadvantage is it could impact the quality of food

Impact the customer as the customers could stop eating from our restaurant due to quality
decreased.

Reducing staff/ Change in rosters.

The advantage is again saving money due to reduction in staff,

The disadvantage is it could gradually result in decrease in service.

Impact It could also disturb the stability of employees and could impact the number of
customers reducing.

Reviewing operating procedure.

The advantage of this approach is saving money

The disadvantage too that it could create confusion as we might not be able to provide
services and goods at same time

Impact so it could impact the customers by making them confused.

Importance of Budget Monitoring:

Budget monitoring should be done constantly on regular basis and not after long intervals.
Regular monitoring of income and expenditure against the agreed budget is central to
effective financial management. Careful monitoring of the budget also provides a
mechanism to hold budget holders to account. Monitoring the budget is important to
ensure that the financial, operational and capital plans that were developed and approved
for implementation as part of the budget processes are being implemented.

So to conclude the report at end, these all were the budget management approaches that
could be used. There is recommendation for the owner that when they are thinking of
implementing any approach, do consider advantages and disadvantages of each approach to
avoid any future consequences.