Management Accounting

This document discusses the promotional strategy and budget preparation for Crystal Hotel Wellness Centre. It includes details of the advertising items and their costs, as well as the overall effectiveness of the advertising strategy. The document also mentions the investment in opening luncheon and its impact on the business prospects of the hotel.

Running head: MANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING
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Discussion
In Response to Task 3
The promotional strategy of the Crystal hotel wellness Centre is represented based on
the preparation of the budget. For the purpose of the promotional activities actually the
amount which is provided by the team is about $12000. The significant strategy in that case
must be adopted by the upper level management for the purpose of enhancing the
productivity of the business (Quattrone, 2016). After opening the Crystal hotel the
management in that case have to adopt the strategies which has been depicted bellow:
 Medium billboard - $2750 for 4 weeks in the strategic location especially within the
center of the city after 7 days of opening.
 A5 flyer one sided - $278.30 before 2 week of opening for 1000 pieces.
 Distribution – letter box delivery - $41.80
 Bus Shelter Poster - $2640 for 2 weeks period ending on the third day of opening.
 Two Quarter page Strip - $2490 for 2 weeks, one is 15 days before the opening and
the other one on 7 days of the opening.
 Horizontal Half page - $2786 on the day of the opening.
 Total advertising cost - $11564.
The necessary cost have allocated by the management system for the purpose of
promoting the Crystal hotel. The above strategy regarding the preparation of the budget is
actually based on some of the key parameters. The budget regarding the promotional activity
is prepared by acquiring the necessary cost information’s provided in the appendix 3. Due to
the cost constraints as the budget of the company is limited to $12000 and accordingly the
management had to make the significant strategies (Kaplan & Atkinson, 2015).
The advertising items, which are actually implemented, are important for the business
to enhance the overall effectiveness of the organization. The promotion falls under one of the
marketing mix of the company which is needed to increase the sales, product acceptance,
brand equity, positioning and further to enhance the corporate image of Crystal Hotel
wellness Centre (Otley, 2016). The advertising and promotional mix of the company plays
significant role in the development of the overall business aspects of the company. The
advertising strategy implemented by the company is quite effective as the overall
performance of the company is further depended in the current market strategy of the firm.

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The promotion activity of the team decided to invest of about $23000 for the purpose
of opening luncheon from the total of $35000 budget. The promotional strategy of the
company will further help the company to enhance the overall business prospect of Crystal
hotel Wellness Centre (Weetman, 2019).

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References
Kaplan, R. S., & Atkinson, A. A. (2015). Advanced management accounting. PHI Learning.
Otley, D. (2016). The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, 45-62.
Quattrone, P. (2016). Management accounting goes digital: Will the move make it wiser?.
Management Accounting Research, 31, 118-122.
Weetman, P. (2019). Financial and management accounting. Pearson UK.