Prior to commencing the assessments, your trainer/assessor will explain each assessment task and the terms and conditions relating to the submission of your assessment task. Please consult with your trainer/assessor if you are unsure of any questions. It is important that you understand and adhere to the terms and conditions, and address fully each assessment task. If any assessment task is not fully addressed, then your assessment task will be returned to you for resubmission. Your trainer/assessor will remain available to support you throughout the assessment process.

Written work

Assessment tasks are used to measure your understanding and underpinning skills and knowledge of the overall unit of competency. When undertaking any written assessment tasks, please ensure that you address the following criteria:

Address each question including any sub-points
Demonstrate that you have researched the topic thoroughly
Cover the topic in a logical, structured manner
Your assessment tasks are well presented, well referenced and word processed
Your assessment tasks include your full legal name in the provided cover page.

Active participation

It is a condition of enrolment that you actively participate in your studies. Active participation is completing all the assessment tasks on time.

Plagiarism

Plagiarism is taking and using someone else’s thoughts, writings or inventions and representing them as your own. Plagiarism is a serious act and may result in a learner’s exclusion from a course. When you have any doubts about including the work of other authors in your assessment, please consult your trainer/assessor. The following list outlines some of the activities for which a learner can be accused of plagiarism:

Presenting any work by another individual as one’s own unintentionally
Handing in assessments markedly similar to or copied from another learner
Presenting the work of another individual or group as their own work
Handing in assessments without the adequate acknowledgement of sources used, including assessments taken totally or in part from the internet.

If it is identified that you have plagiarised within your assessment, then a meeting will be organised to discuss this with you, and further action may be taken accordingly.

Collusion

Collusion is the presentation by a learner of an assignment as their own that is, in fact, the result in whole or in part of unauthorised collaboration with another person or persons. Collusion involves the cooperation of two or more learners in plagiarism or other forms of academic misconduct and, as such, both parties are subject to disciplinary action. Collusion or copying from other learners is not permitted and will result in a “NS” grade and NYC.

Assessments must be typed using document software such as (or similar to) MS Office. Handwritten assessments will not be accepted (unless, prior written confirmation is provided by the trainer/assessor to confirm).

Competency outcome

There are two outcomes of assessments: S = Satisfactory and NYS = Not Yet Satisfactory

Once the learner has satisfactorily completed all the tasks for this module the learner will be awarded “Competent” (C) or “Not yet Competent” (NYC) for the relevant unit of competency.

If you are deemed “Not Yet Competent” you will be provided with feedback from your assessor and “will” be given another chance to resubmit your assessment task(s). If you are still deemed as “Not Yet Competent” you will be required to re-enrol in the unit of competency.

Additional evidence

If we, at our sole discretion, determine that we require additional or alternative information/evidence in order to determine competency, you must provide us with such information/evidence, subject to privacy and confidentiality issues. We retain this right at any time, including after submission of your assessments.

Confidentiality

We will treat anything, including information about your job, workplace, employer, with strict confidence, in accordance with the law. However, you are responsible for ensuring that you do not provide us with anything regarding any third party including your employer, colleagues and others, that they do not consent to the disclosure of. While we may ask you to provide information or details about aspects of your employer and workplace, you are responsible for obtaining necessary consents and ensuring that privacy rights and confidentiality obligations are not breached by you in supplying us with such information.

Assessment appeals process

If you feel that you have been unfairly treated during your assessment, and you are not happy with your assessment and/or the outcome as a result of that treatment, you have the right to lodge an appeal. You must first discuss the issue with your trainer/assessor. If you would like to proceed further with the request after discussions with your trainer/assessor, you need to lodge your appeal to the course coordinator, in writing, outlining the reason(s) for the appeal. For more information please refer to our policy and procedures by visiting www.kii.edu.au/documents or login to your LMS account by clicking the link https://www.kiionline.edu.au/course/view.php?id=59.

Recognised prior learning

Candidates will be able to have their previous experience or expertise recognised on request.

Special needs

Candidates with special needs should notify their trainer/assessor to request any required adjustments as soon as possible. This will enable the trainer/assessor to address the identified needs immediately

Assessment requirements

Assessment can either be:

Direct observation
Product-based methods e.g. reports, role plays, work samples
Questioning

The assessment activities in this workbook assess aspects of all the elements, performance criteria, skills and knowledge and performance requirements of the unit of competency.

To demonstrate competence in this unit you must undertake all activities in this Assessment and have them deemed satisfactory by the assessor. If you do not answer some questions or perform certain tasks, and therefore you are deemed to be Not Yet Competent, your trainer/assessor may ask you supplementary questions to determine your competence. Once you have demonstrated the required level of performance, you will be deemed competent in this unit.

Should you still be deemed Not Yet Competent, you may have the opportunity to resubmit your assessments or appeal the result.

As part of the assessment process, all learners must abide by any relevant assessment policies as provided during induction (orientation). For more information refer to our assessment policies by visiting www.kii.edu.au/documents or login to your LMS account by clicking the link https://www.kiionline.edu.au/course/view.php?id=59.

If you feel you are not yet ready to be assessed or that this assessment is unfair, please contact your assessor to discuss your options. You have the right to formally appeal any outcome and, if you wish to do so, discuss this with your trainer/assessor.

Demonstration (if applicable)

Throughout this unit, you will be expected to show your competency of the elements through demonstrations. Your trainer/assessor will have a list of demonstrations you must complete or tasks to be observed. The demonstrations will be completed as well as the activities found in this Assessment

An explanation of demonstrations:

Demonstration is off-the-job

A demonstration will require:

Performing a skill or task that is asked of you

Undertaking a simulation exercise.

The demonstration will take place in the training environment. Your trainer/assessor will ensure you are provided with the correct equipment and/or materials to complete the task. They will also inform you of how long you have to complete the task.

You should be able to demonstrate the skills, knowledge and performance criteria required for this KII unit.

Third Party Guide

You should supply details of the third party to the assessor before you commence the activities (see below), unless the assessor has already selected a third party themselves. The assessor can then contact the third party in instances where they require more evidence to determine competency, or they cannot observe certain tasks themselves.

The reasons to use a third party may include:

Assessment is required in the workplace
Where there are health and safety issues related to observation
Patient confidentiality and privacy issues are involved.

If you are not employed, or able to complete demonstrative tasks in the workplace, you will need to inform the assessor. They will be able to provide you with a simulated environment in which to complete these tasks.

We would prefer that, wherever possible, these be “live” issues for your industry and require application of the principles that you are learning as part of your training. Where this is not possible, you and your third party should simulate the activity tasks and demonstrations that you believe would be likely to arise in your organisation or job role.

Third party evidence can also be used to provide “everyday evidence” of tasks included in your work role that relate to the unit of competency but are not a part of the formal assessment process.

The third party is not to be used as a co-assessor – the assessor must make the final decision on competency themselves.

Documents relevant to collection of third-party evidence are included in the Third-Party section in the Observations/Demonstrations document.

Third party details (required information from the learner)

A third party may be required for observations or demonstrations; please provide details below of your nominated third party and obtain their signature to confirm their agreement to participate. This information will be required by your trainer/assessor in advance of arranging any future observations or demonstrations.

Third party name: ______________________________________________________________

Position of third party: ______________________________________________________________

Telephone number: ______________________________________________________________

Email address: ______________________________________________________________

Declaration for nominated third party

I declare my intention to act as third party for (learner’s name here) __________________________

Third party signature: _____________________________________

Date: ___________________

ASSESSMENT COVERSHEET

Unit:
Course Name:
Assessment Tool:	Assessment 2

Student must fill this section:
Student Name:
Student ID:
Privacy Release Clause:	“I give my permission for my assessment material to be used in the auditing, assessment validation & moderation Process”
Authenticity Declaration:	“I declare that: · The material I have submitted is my own work; · I have kept a copy of all relevant notes and reference material that I used in the production of my work; · I have given references for all sources of information that are not my own, including the words, ideas and images of others.”
Student signature:		Date:

Assessment Completion Status
Attempt	Satisfactory	Non-Satisfactory	Date	Assessor’s Signature
Initial attempt
2^nd attempt/Re-assessment

Feedback to student:

Information for Student:

· All work is to be entirely of the Student.

· Read the instructions for each question very carefully.

· Be sure to PRINT your FULL name & LAST name in every place that is provided.

· Short questions must be answered in the spaces provided or follow the word limits as instructed.

· For those activities requesting extra evidence such as: research reports, ESSAY reports, etc. The student must attach its own work formatted in double space, Arial 12 pts.

· All assessment tasks must be addressed correctly in order to obtain a competence for the unit of competency.

· If the Student doesn’t understand the assessment, they can request help from the assessor to interpret the assessment.

· All assessments must be submitted online. Login to www.kiionline.edu.au and follow the subject link to submit your assessments. Note that the hard copy of the assessments will not be accepted.

Re-assessment of Result& Academic Appeal procedures:

If a student is not happy with his/ her results, that student may appeal against their grade via a written letter, clearly stating the grounds of appeal to the Operations Manager. This should be submitted after completion of the subject and within fourteen days of commencement of the new term.

Re-assessment Process:

· An appeal in writing is made to the Operations Manager providing reasons for re-assessment /appeal.

· Operations Manager will delegate another faculty member to review the assessment.

· The student will be advised of the review result done by another assessor.

· If the student is still not satisfied and further challenges the decision, then a review panel is formed comprising the lecturer/trainer in charge and the Operations Manager OR if need be an external assessor.

· The Institute will advise the student within 14 days from the submission date of the appeal. The decision of the panel will be deemed to be final.

· If the student is still not satisfied with the result, the he / she has the right to seek independent advice or follow external mediation option with nominated mediation agency.

· Any student who fails a compulsory subject or appeals unsuccessfully will be required to re-enrol in that subject.

The cost of reassessment will be borne by the Institute. The external assessor will base his/her judgement based on principles of assessment. These principles require assessment to be reliable, fair, practical and valid.
Academic Appeals

· If you are dissatisfied with the outcome of the re-evaluation process, you have a right to appeal through academic appeals handling protocol.

· To appeal a decision, the person is required to complete the KII- Request for Appeal of a Decision form with all other supporting documents, if any. This form is available via our website. The completed Request for Appeal form is to be submitted to the Student Support Officer either in hard copy or electronically via the following contact details:

Student Support Officer, Kingsford International Institute (KII), Level 6, 128-136 Chalmers St, Surry Hills, NSW 2010, Email: [email protected]

· The notice of appeal should be in writing addressed to the Operations Manager and submitted within seven days of notification of the outcome of the re-evaluation process.

· If the appeal is not lodged in the specified time, the result will stand and you must re-enrol in the unit.

· In emergency circumstances, such as in cases of serious illness or injury, you must forward a medical certificate in support of a deferred appeal. The notice of appeal must be made within three working days of the concluding date shown on the medical certificate.

· The decision of Operations Manager will be final.

· Student would then have the right to pursue the claim through an independent external body as detailed in the students’ complaint / grievance policy.

“I understand all the above rules and guidelines for the assessment”


Full Name		Signature		Date (dd/mm/yyyy)

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: 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

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
Variable indirect costs
Fixed indirect costs

Q2: Name the top four cost categories the business has allocated the most funds too in this budget period.

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.

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	Favourable / Unfavourable	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
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	–	–	–

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: 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:
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

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.

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	267,678	(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)	260,762	299,799	15
Percentage of total sales	44.19	50.82		43.19	49.93		45.06	51.50		14.47	16.5

Q1: Complete the table below by inserting the variance percentage for each category in each month.

Category	Bistro labour budget – variance percentage
Category	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.

Bistro staffing levels

	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

Glossary

Crnt	Current staffing level		FT	Fulltime employee
Rvsd	Revised staffing level		Cas	Casual employee

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

Complete the Bistro profit and loss statement – June quarter by calculating all missing dollar value and percentage variances.

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

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.

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%

Task 3: Prepare a management report

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.

Table of Contents

Instructions to Learner

Assessment instructions

Assessment requirements

Demonstration (if applicable)

Third Party Guide

Third party details (required information from the learner)

Assessment 2 – Summative Assessments

Section A: Skills activity (Case Study)

Case study A

Jackson Hotel operational budget – June quarter

Comparative analysis report

Section B: Performance activity

Comparative analysis report

Bistro purchasing budget – May

Bistro labour budget – June quarter

Bistro staffing levels

Glossary

Bistro profit and loss statement – June quarter

Trend analysis report – June quarter