SITXFIN005 Manage Physical Assets - AIC Advanced Hospitality Task

This assignment solution for SITXFIN005 Manage Physical Assets, completed at Australian Ideal College, addresses various aspects of physical asset management within the tourism, hospitality, and event industries. It includes discussions on how business objectives like profitability, growth, and quality of service influence asset management methods. The assignment provides examples of different types of physical assets, their maintenance requirements, and key considerations for long-term assessment and acquisition, including budget parameters, environmental sustainability, and suitability to products and services. Furthermore, it outlines the details needed in an asset register and compares the features, advantages, and disadvantages of financing options such as hire purchase and leasing. This document provides a detailed overview of the assignment and can be found with other solved assignments on Desklib.

Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
AIC- SITXFIN005-AT1-V1.0 Page 1 of 21
Educating for Excellence
Assessment Submission Sheet
Course SIT60316 Advanced Diploma of Hospitality Management
Unit Code SITXFIN005
Unit Name Manage physical assets
Assessor
Name
Student
Name
Student ID
Date Due
Please read and sign this assessment coversheet and submit it together with your assessment to
your Assessor by the due date.
Student Declaration
 I declare that the work submitted is my own, and has not been copied or plagiarised from any
person or source.
 I have read the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the
Student Handbook and I understand all the rules and guidelines for undertaking assessments.
 I understand that by typing my full name in the student field this is equivalent to a hand-written
signature.
 I give permission for my assessment material to be used for continuous improvement purposes.
Student
Signature
Date
Submitted
Assessor Use Only
Assessment Items Result
Task 1 Assessment Task 1 – Short Answers S NS
Task 2 Assessment Task 2 – Project S NS
Overall result for this unit C NYC
Student Declaration: I declare that I have
been assessed in this unit, and I have been
advised of my result. I am also aware of my
appeal rights.
Assessor Declaration: I declare that I have
conducted a fair, valid, reliable and flexible
assessment with this student, and I have
provided appropriate feedback
Signature Signatur
e
Date

AIC- SITXFIN005-AT1-V1.0 Page 2 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Assessor’s Comments

AIC- SITXFIN005-AT1-V1.0 Page 3 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Task 1
Assessment Instructions
This is an individual assessment. Please understand the questions before you start answering them.
Ask your trainer of you are unsure of any questions.
To be deemed competent you will need to successfully demonstrate the following:
You must submit:
 All questions must be answered satisfactorily
Procedure
1. How can the following business objectives influence the methods used for
managing physical assets in an organisation? Provide 1 example for each:
 Profitability
It is one of the main and the key goal of any organisation to remain in the market and attain
more physical assets. The rate of return of the capital which is invested is to be generated
and the total cost should be identified before taking any decision.
 Growth
It is expanding the business economically and in monetary terms as well. For this, the
lifecycle of the products and the utilization of the assets should be considered by checking on
the amount of work that is performed in the organization (Chattopadhyay, 2021).
 Providing quality products and services to customers
The resources, for example, furniture and offices accordingly impact the conceivable rating
that can be acquired. Essential arrangements will bring about a lower rating, which will affect
the value that can be placed on a room. Spending more and guaranteeing customary upkeep
exercises are done can bring about a higher rating, which will then, at that point, permit a
more exorbitant cost to be charged. The profit from speculation again should be determined
cautiously

AIC- SITXFIN005-AT1-V1.0 Page 4 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
 Adhering to:
1. codes of conduct
2. environmental sustainability philosophies and practices
Outside impacts may likewise be viewed as while settling on essential resource the board
choices. Industry Codes of Conduct and Accreditation Schemes might direct somewhat the
way that choice should be made. For instance, the Star Ratings Australia Accommodation
Classification Scheme covers a wide reach of accommodation and comprises appraisals from
one to five stars in Australia and New Zealand. One star offers clean fundamental
convenience, while five stars demonstrate exceptional worldwide guidelines.
 Industry accreditation schemes
When a major amount of capital is invested in the business, certain research is done before
investing. The expenditure which is to be made for the improvement in the organization is to
be justified strategically.

AIC- SITXFIN005-AT1-V1.0 Page 5 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
3. Provide 8 examples for different types of physical assets required by
tourism, hospitality and event organisations:
Responses
1. Computer Systems
2. Gardens and related equipment's
3. Pools
4. Furniture's Fitting
5. Buildings
6. Equipment’s and Machinery
7. Games and rides
8. Swimming Pools
1. List 5 physical assets relevant to your workplace or training and provide the
maintenance details typically required for each:
Physical asset Maintenance requirements
1. Furniture’s and Fittings The standard of the furniture should match with
the interior and the space should be utilized
innovatively and stylishly.
2. Buildings Guests expect high-quality services from the
restaurant.
3. Computer Systems The voucher requirement with proper names
and the entries should be filled and stored with
full security.
4. Equipment and machinery The vessels and the crockery which are
essential for the making of the deliveries should
be utilized with full potential by maintaining the
quality standard.
5. Games and rides The fun zone should be made available so that
the customers could find the organization more
attractive.

AIC- SITXFIN005-AT1-V1.0 Page 6 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
2. List 6 key aspects which must be considered for the long-term assessment
of physical assets in terms of nature of requirements and necessity of
acquisition. Who could be typically involved in this in terms of feedback
and specialist advice?
Responses
1. Value of asset
2. Depreciation
3. Life - cycle
4. Cost - benefit analysis
5. Maintenance
6. Planning for the short and long haul of period
Involvement
The asset administration for the sustainability requires the planning for considering all the
implications that the business can suffer. The management have to be teamed up by ensuring
that the work should be completed by giving a valid amount of time (Wolfenden and et.al.,
2019).
1. The following are parameters which are used to guide the acquisition of
physical assets. Provide examples and details for what should be
considered, for each aspect.
Budget parameters
Is there already a budget set aside for this purchase? Is the chosen item under the monetary
capacity? If there is anything that needs to be reformed in the budget to support the
investment? What effect will this have on the company's other operational areas?
Environmental sustainability policies for the business
Asset purchases should be consistent with the company's environmental laws. To guarantee
that the right assets are picked, standards should indeed be prepared that detail carbon,
economization, and ongoing resource utilization, among other things.
Site plans
Physical limits, such as access point measurements or quiet areas for just a piece of
machinery to fit, may need to be addressed. Understanding how well the commodity will be
utilized in the company or whether it will improve or integrate into the process is critical. A new
collection of kitchenware, for example, may have to integrate into a specific region of the
restaurant so that it would not obstruct employee movement or item workflow.
Auxiliary items
Alternative scenarios for a specific asset might have to be investigated for additional related
goods that need to be purchased, preserved, or fitted. Decorations, accessories, and
equipment may be necessary to complete or improve the core property.
Performance requirements
If the resource is to be utilized in a develop a protocol or as a component of such a core
service, it will have to figure out the appropriate output levels as well as other elements of its
functioning. Aspects like the number of products produced every hour, the speed with which
operations are carried out, and the efficiency with which they are carried out are all factors to
consider.
Suitability to products and services offered

AIC- SITXFIN005-AT1-V1.0 Page 7 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
All commodities should be carefully evaluated that they are suitable for the target use. To
make sure the right quality of service and client outcomes can be reached, a company's
goods/services must always be assessed. For reference, an automobile must be fit for a
particular usage.
1. Which details need to be recorded in an asset register for each physical
asset?
Responses
The coding system issued to each object can be written down as a barcode scanner, with a
copy tangibly linked to the asset. This makes it simple to keep track of and identify each item.
This materialistic worldview of documenting aids in the prevention of theft and enhances the
productivity of stocktaking. The asset management registry will keep track of the history of
each asset

AIC- SITXFIN005-AT1-V1.0 Page 8 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
1. Provide an overview of the features, advantages and disadvantages of
each of the following financing options when acquiring assets:
1. Hire purchase
Pros Cons
Less incurring of capital
expenditure
Termination of the lease is
costly
The purchasing option is
available at the end of the
lease
Does not give full control on
the asset.
2. Lease
Pros Cons
Less incurring of capital
expenditure
Termination of a lease is
costly
The purchasing option is
available at the end of the
lease
Does not give full control on
the asset.
3. Purchase
Advantages Disadvantages
Elevation in the value of
equity
Maintenance costs
Ownership of asset High risk
4. Rent
Advantages Disadvantages
Tax deductions No ownership
No maintenance costs High cost for utilising

AIC- SITXFIN005-AT1-V1.0 Page 9 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
1. Explain the methods for calculating the depreciation of assets using each of
the following methods:
Prime cost method
It is also called the straight line method which is utilised for calculating the depreciable amount
on the asset. This method deducts the fixed amount every year till the asset is useful. It
considering the three item while computing the amount which are:
1. Cost price
2. Expected useful life
3. Expected residual value
Annual depreciation amount = (cost - residual value) ÷ life
Diminishing Value Method
It is also referred to as the amount which is deducted every year on the specific rate. It changes every
year.
The formula is:
Depreciation amount = base value * (days held ÷ 365) * (200% ÷ asset's effective life)
2. Go to the ATO website link provided below and source the information for
the current simplified depreciation rules which apply:
https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/simpler-
depreciation-for-small-business/ (checked on 14 Dec 2020)
Responses
Depreciation occurs for a variety of causes. Office furniture depreciates mostly due to software
degradation, which implies that better gear will rapidly outperform older machines. Industrial
deterioration happens whenever the assets are no longer required leading to a decline of
quantity demanded or service is offered. The depreciation of office furniture is mostly due to the
physical breakdown. Because advancements in technology in office equipment are
considerably slower than those in computing, depreciation plays a little influence. Regularly
used equipment may degenerate as a result of the damage that comes with it.
1. Provide 4 examples of sources for data to enable you to estimate reliable
acquisition costs. What does this need to consider in terms of contractual
obligations and ongoing maintenance?
Responses
1. Staffing required for maintenance
2. Maintenance that is required
3. Service location, for instance, that can be performed off after far from
high-traffic areas
4. Maintenance work is expected to take a certain amount of time
Aspects to consider
The goal of planned maintenance is to maintain the firm working smoothly
in all sectors. A firm must retain a particular standard of hygiene and a

AIC- SITXFIN005-AT1-V1.0 Page 10 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
professional image that visitors demand
It can only be carried out along with the least amount of disturbance to
routine maintenance although with the least amount of annoyance to guests
and workers.
1. List 3 examples for environmental sustainability that applies to physical
assets and outline the environmental and financial benefits as applicable:
Example Environmental and financial benefits
Using the recycled water Maintaining your vehicle on a routine
basis might also reduce pollution.
Take a machine that spills because of
a metal-binding defect
Dropping usage of power electricity This immediately leads to higher
usage of water by the company,
which is harmful to both the
environment and the water bill.
Because periodic inspection is not
performed, the break remains
unaddressed, resulting in a faster-
than-expected asset retirement
Sinking water wastage This has an impact on the
environment because of those
pollutants related to new cleaner's
production, as well as the net profit

AIC- SITXFIN005-AT1-V1.0 Page 11 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
Task 2
Assessment Instructions
This is an individual assessment. There are three parts to this assessment. Please ask your trainer if
you need any information.
To be deemed competent you will need to successfully demonstrate the following:
You must submit:
 Resource acquisition plan for 3 different resources
 Completed asset register for 3 assets
 Resource management strategy
Procedure
Part A
Requires you to develop a resource acquisition plan for the acquisition of 3 different resources from
the following main categories:
 buildings
 computer systems
 equipment fixtures, fittings and furniture in one of the following:
1. accommodation establishments
2. commercial kitchens
3. restaurants and bars
4. storage areas
5. tourism, hospitality and event offices
6. transportation depots
 gardens
 pools
 rides and games
 vehicles
 vessels
Part B
Requires you to develop an asset register which needs to list the details for the 3 new physical assets
you have determined in Part A. You must include the maintenance requirements and schedule of
maintenance for each asset.
Part C
Requires you to develop a resource management strategy which provides details on how the
efficiency of each asset is monitored

AIC- SITXFIN005-AT1-V1.0 Page 12 of 21
Australian Ideal College
Registered as Australian Ideal College Pty Ltd
RTO No.: 91679 | CRICOS Provider Code: 03053G
Sydney Campus: Level 7 & 8, 75 King Street, Sydney NSW 2000 Australia
Adelaide Campus: Level 3, 21-23 Rundle Mall, Adelaide SA 5000 Australia
Hobart Campus: GRD Floor, 116 Murray Street, Hobart TAS 7000 Australia
T: [phone] (Sydney) | [phone] (Adelaide) | [phone] (Hobart)
E: [e-mail] | W: www.aic.edu.au
Educating for Excellence
PART A – Acquisition Plan
Task:
You are required to choose 3 different physical assets, relevant for an organisation in the Tourism,
hospitality or event industries, which may include any of the following:
 buildings
 computer systems
 equipment fixtures, fittings and furniture in one of the following:
1. accommodation establishments
2. commercial kitchens
3. restaurants and bars
4. storage areas
5. tourism, hospitality and event offices
6. transportation depots
 gardens
 pools
 rides and games
 vehicles
 vessels
1. Provide an overview of the business activities of the organisation relevant to the
physical assets selected.
2. List the purpose of the acquisition or replacement of the physical assets, providing
detailed information what informs the decision to acquire these new assets.
3. Write an overview of specifications for each asset which clearly outline what
requirements each asset needs to fulfil in terms of capacity, performance, size,
location requirements and maximum budget for each or for the overall budget
parameter.
4. Obtain 3 prices or quotes from different suppliers or sources for each asset. Attach the
correspondence and final quote received for each asset to this project.
5. Contact a financial institution and at least 2 different suppliers and obtain information
on 3 different financing options available and costs (attach copies of your
correspondence).
6. Calculate the finance variants offered to you and determine the best options for each
asset. Your options need to include potential factors for depreciation, consideration for
technology changes and financial impacts on the organisation and financial aspects