Accounting for Decision Making Crystal Hotel Pty

ACCOUNTING FOR
DECISION MAKING
CRYSTAL HOTEL PTY LTD

 Revenue from rooms of Crystal Hotel Pty Ltd which is the main source
of income is lower than the industry standard (Robinson, 2020).
 Costs of sales of every aspects like rooms, foods and beverages and
others are higher than the industry standard which is a negative
aspects (Robinson et al., 2015).
 Personnel costs for the main items like rooms, foods and beverages,
sales and marketing and others are higher than the industry standard
which is a matter of concern for the management (Easton
&Sommers, 2018).
 The unallocated operating costs in the areas like administrative,
property maintenance and others are higher than the industry
standard (Gad, 2015).
 On a proportionate basis, total costs of the hotel is higher than the
industry standard while revenue is lower the industry standard (Welc,
2017).
INCOME STATENENT COMPARATIVE
ANALYSIS

PROFITABILITY RATIOS – The Gross Profit ratio of Crystal Hotel Pty
Ltd is lower than the industry standard because of higher cost of
sales and the Net Profit ratio is higher than the industry standard.
Both Return on Assets and Return on Equity ratios are lower than
the industry standards. Overall, Crystal Hotel does not have a
good profitability position (Satryo, Rokhmania&Diptyana, 2017).
EFFICIENCY RATIOS – Inventory Turnover ratio is way lower than
the industry standard which is an area of concern. Accounts
Receivable Collection Period is much higher than the industry
standard which is also a matter of concern for the hotel. On the
overall basis, the efficiency position of the hotel is not effective
when compared to the industry (Havidz&Setiawan, 2015).
RATIO ANALYSIS