Assessment 2

Unit Code: - SITXFIN009

Unit Name: - Manage finances within a
budget

Assessment for this Unit of Details

Competency/Cluster

Assessment 1 Written Test

Assessment 2 Case Study & Project

Assessment 3

Assessment conducted in this instance: Assessment 1 2 X 3

SITXFIN009 Manage finances within a budget

Assessment Guidelines
What will be assessed
The purpose of this assessment is to assess your underpinning knowledge to complete the tasks
outlined in the elements and performance criteria for this unit of competency and ability to
complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
 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:
 discussions with existing suppliers
 evaluation of staffing and rostering requirements
 evaluation of impact of potential roster changes
 review of operating procedures
 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

Place/Location where assessment will be conducted

DC Class Room and DC Training Kitchen
Resource Requirements
Pen, Paper or computer
Refer to the Assessment conditions attached to the Futura Group Mapping Document located in
the teacher support tools folder or the “Assessment Conditions” for this unit in the current SIT
Training Package.

Instructions for assessment including WHS requirements

You are required to address all questions to achieve competence.
Your trainer will provide you with instructions for time frames and dates to complete this
assessment.
If more space is required for any answer you may attach a separate page containing your
ID number, your name, unit title, unit code and the assessment task number and attach this
page with the current assessment task before submission or alternatively use the back of
each paper with a clear reference to the relevant question(s). Once completed, carefully read
the responses you have provided and check for completeness.
Ensure you check your work and keep a copy before submitting. You are encouraged to
clarify any tasks, requirements or questions you may have with your trainer Your trainer will
provide you with feedback and the result you have achieved.

Duke College (DC) Assessment 2, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 2 of 7
SITXFIN009 Manage finances within a budget

Assessment 2: Case study and Project

Your Task:
Task 1: Case Study Analysis

PART A: Case Study

Analysis on Budget Variance
Top of the Town Hotel has asked you to calculate the variance for the following figures for
the month of July and August. Also calculate the total profit that was budgeted and actual.
Analyse the findings and inform them about the variance as they are concerned and would
like to monitor the income, expenditure, profit levels, budgetary performance of their Food
and Beverage Department.
Item July August
Budget Actual Variance Budget Actual Variance
Sales 230,000 225,000 -5000 - 230,000 228,000 2,000
-2000
Revenue 5,000
Food Costs 85,000 87,000 +2000-2,000 85,000 86,000 +1000
-1,000
Beverage 14,000 15,000 +1000 - 15,000 15,000 0
0
Costs 1,000
Labour 77,000 82,000 - 78,000 82,000 -4,000
+4000
Costs +5000
5,000
Fixed Costs 35,000 35,000 0 0 35,000 35,000 0 0
Total Costs 211,000
211,000 219,000
219,000 8000 -8,000 213,000
213,000 218,000 5,000
218,000 -5,000
Profit 19,000
19,000 6,000
6000 -13000
-13,000 17,000
17000 10,000
10,000 -8,000
-7000

The Hotel owners and managers would like to know from you the major areas of concern
where there is a deviation that needs further monitoring and improvement.
Answer may include:
To
1. calculate the following
Sales revenue, formulas
food costs, labour should be used
costs, fixed costs and total costs
Total Costs = (Food Costs + Beverage Costs + Labour Costs + Fixed Costs)
Profit = (Total Cost – Sales Revenue) – should be calculated for Budget and Actual.
Variance = (Budget – Actual) – should be used for each item individually
• Sales Revenue
• Food Costs
• Beverage Costs

Duke College (DC) Assessment 2, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 3 of 7
SITXFIN009 Manage finances within a budget

PART B
Answer the following questions.
Questions:
1. Explain the importance to the owners of monitoring budgets and why do you think
it will help them to manage their finances better for the business.
1.Budget provide direction : Realistic targets are set for the future without which management and
staff would have no goals would that direction. People work together when they understand what to
require. This mean you must set clear and realistic goal and requirement.
2.Budget motivate staff: providing a goal for Staff and involving them in in setting those goals will
motivate staff to
2. Explain to them
achieve
thethem
use of, and the keythe
analysing aspect is thebudget
monthly involvement of the staffthe
and comparing
3. Budgets coordinate the business activities: the budgets look at the business as a whole and ensure
forecasted
that budget
the activities of against thedepartments
the every actual budgets.
or coordinated

Question 2 : Explain to them the use of analysing the monthly budget and comparing the forecasted
budget against the actual budgets.
Comparing the projected budget with the actual budget and completing a variance analyses to
calculate the deviation and variance is, he is an important step in and analyses monthly budget and
forecasted budget so you can actually manage finances in all the time

3. Explain your findings and possible reasons for these variances.

So the reason for these variances in the labour cost and the food cost could be because of high
labour cost particular. If the staff wage are on hourly basis and hour rate could be more comparing to
the regular staff salary or permanent staff member
If the cost of food, the buying food supplies goes out up due to the external environment factor that
may have variances

4. Research and suggest what improvements do you think the owners can take to
improve this situation?

Regular monitoring of budget can help significantly to reduce the variance. Improving sales by
launching new schemes can help in making situation better. Regular check on labour costs can
definitely reduce the variance. Shifting expected targets according to actual budget can really help
in improving this situation.

Duke College (DC) Assessment 2, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 4 of 7
SITXFIN009 Manage finances within a budget

Task 2 – Variance Analysis Note

You have been provided with the projected data sheet for reference in the Task 2 Spread
sheet.
Please use the Assessment Task 2 spread sheet file to complete the calculations.

In this task you are provided with an excel file with 2 spread sheets
(Budgeted Rooms Revenue Sheet, Actual Rooms Revenue sheet) with the actual figures on the
rooms for a given quarter. You are required to calculate the actual revenue that has been generated
for each month in the given quarter based on the actual occupancy rate.

Calculate the following details using the appropriate sheet as per the given instructions
Budgeted Rooms Revenue Sheet
In this sheet first calculate the total projected/forecasted revenue per room type for all 365
days.

Budgeted Rooms Revenue Sheet

• You are also required to calculate total projected/forecasted revenue per room type
for each month for Jan, Feb and Mar.
• Calculate the total rooms for each month –
• Calculate the Total Revenue for all room types for each month –
• Calculate the total projected revenue for 3 months (Jan, Feb and Mar) –

Actual Rooms Revenue Sheet

In this sheet you are provided with the Actual occupancy for each month.
• Calculate the Revenue per room type for each month (Jan, Feb and Mar)

• Calculate the total rooms for each month –

• Calculate the Total Revenue for all room types for each month –

• Calculate the total revenue per room for 3 months (Jan, Feb and Mar) –

Duke College (DC) Assessment 2, Oct 2022

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RTO ID: 90681 Page 5 of 7
SITXFIN009 Manage finances within a budget

The Bentley Hotel

Forecast room revenues

Annually
Room Type Total Projected/ Room Rate Available Projected /Forecasted
Rooms Forecasted days Revenue per room type
Available Occupancy
King Suite 20 70% $575 365 2938350
Queen Suite 10 80% $475 365 1387000
Deluxe Room 50 89% $375 365 6090937.5
Standard Room 40 90% $275 365 3613500
Total 120 14,029,787.5
Monthly
Room Type Total Projected/ Room Rate Jan Projected /Forecasted
Rooms Forecasted Revenue per room type
Available Occupancy
King Suite 20 70% $575 31 249550
Queen Suite 10 80% $475 31 117800
Deluxe Room 50 89% $375 31 517312.5
Standard Room 40 90% $275 31 306900
Total 1,191,562.5
Monthly
Room Type Total Projected/ Room Rate Feb Projected /Forecasted
Rooms Forecasted Revenue per room type
Available Occupancy
King Suite 20 70% $575 28 225400
Queen Suite 10 80% $475 28 106400
Deluxe Room 50 89% $375 28 467250
Standard Room 40 90% $275 28 277200
Total 1,076,250
Monthly
Room Type Total Projected/ Room Rate Mar Projected /Forecasted
Rooms Forecasted Revenue per room type
Available Occupancy
King Suite 20 70% $575 31 249550
Queen Suite 10 80% $475 31 117800
Deluxe Room 50 89% $375 31 517312.5
Standard Room 40 90% $275 31 306900
Total 1,191,562.5

Duke College (DC) Assessment 2, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 6 of 7
SITXFIN009 Manage finances within a budget

Actual room revenues

Monthly
Room Type Total Actual Room Jan Revenue per Variance
Rooms Occupancy Rate room type
Available
King Suite 20 65% $575 31 231725 17,825
Queen Suite 10 70% $475 31 103075 14,725
Deluxe Room 50 85% $375 31 494062.5 23,250
Standard Room 40 85% $275 31 289850 17,050
Total 1,118,712.5 72,850
Monthly
Room Type Total Actual Room Feb Revenue per Variance
Rooms Occupancy Rate room type
Available
King Suite 20 68% $575 28 218960 6,440
Queen Suite 10 55% $475 28 73150 33,250
Deluxe Room 50 85% $375 28 446250 21,000
Standard Room 40 70% $275 28 215600 61,600
Total 953,960 122,290
Monthly
Room Type Total Actual Room Mar Revenue per Variance
Rooms Occupancy Rate room type
Available
King Suite 20 67% $575 31 238855 10,695
Queen Suite 10 80% $475 31 117800 0
Deluxe Room 50 89% $375 31 517312.5 0
Standard Room 40 90% $275 31 306900 0
Total 1,180,867.5

Duke College (DC) Assessment 2, Oct 2022

CRICOS ID: 02564C Version 2.1
RTO ID: 90681 Page 7 of 7