Assignment on how to manage Finances

Running head: MANAGE FINANCES
Manage Finances
Name of the Student:
Name of the University:
Author’s Note:

1MANAGE FINANCES
Table of Contents
Task 4:........................................................................................................................................2
References:.................................................................................................................................5

2MANAGE FINANCES
Task 4:
Budgeting is a process of estimation of revenues and expenses based on certain
demand forecast and estimated costs. It can be used for various important business decision-
making process and building various business strategies (Cardoş 2014).
In the given case study actual figures for 2014/15 for the Hotel Futura have been
given and based on that budget for the year 2015/16 has been prepared. With a forecast of
90% of room availability for renovation and maintenance and a occupancy rate of 78% of the
available rooms, it can be estimated that a total revenue would be $13.28million. The hotel
has various segments and budget statement shows revenues and expenses for each of such
segments. Main sources of revenue for the hotel are, room revenue, food revenue and revenue
from beverages. Due to changes made and resultant estimates of revenues and expenses
following affects can be observed.
It can be observed that, though there is a decrease in the room availability and
occupancy, the total revenue has been increased due to higher room rent and increase in
revenues from other segments (Ittner and Michels 2017). On the other hand, expenses in
some departments have also been increased which can be shown comparatively using the
following bar chart.