SITXFIN005 Manage Physical Assets: Short Answer Questions & Project

This assignment for SITXFIN005, Manage Physical Assets, includes short answer questions and a project covering various aspects of physical asset management within tourism, hospitality, and event organizations. The short answer questions address how business objectives influence asset management methods, examples of physical assets, maintenance requirements, long-term assessment considerations, acquisition parameters (budget, sustainability, site plans, etc.), asset register details, and financing options (hire purchase, lease, purchase, rent). The assignment further delves into methods for calculating depreciation, including the prime cost and diminishing value methods. It also includes a physical asset register for Hotel Futura with details like purchase date, cost price, depreciation rate, and accumulated depreciation. Desklib provides students access to this solved assignment and many other study resources.

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Course Code SIT60316 Course Name Advanced Diploma of Hospitality
Management
Unit Code SITXFIN005 Unit Name Manage physical assets
Due Date Assessment Name Short Answer Questions
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Course Code and Name: SIT60316 Advanced Diploma of Hospitality Management
Unit Code: SITXFIN005
Unit Title: Manage physical assets
Assessment 1
Your Task:
Answer the following questions below. All questions must be answered.
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 the need and wants as well as the purpose of every firm and organization for maintaining their
position and goodwill in the market. Before making any decision the degree of return of the invested
capital to be facilitated and aggregate cost need to be identified.
Growth
It indicates business development in terms of monetary and economic. After adopting this, the
product life cycle and asset utilization would be considered by examining the quantity of activity
performed in the business organization.
Providing quality products and services to customers
For attracting more and more customers towards particular goods or services organization tries to make
quality goods and services at a reasonable price level. If the industry produces good quality products,
then customers are ready to pay high prices for the same. It helps organizations to make more profit and
outcomes during the period. It also increases the firm in the marketplace. This type of implementation in
the production process wants higher speculation and direction.
Adhering to:
o codes of conduct
o environmental sustainability philosophies and practices
Outside challenges and issues generally come up at the time of fixing the necessary resources for board
selection. The accreditation scheme and code of conduct may be direct according to the way the choice
should be made. For example, the Star Rating Australian Accommodation differentiation scheme
includes a huge range of increments and adjustments from one start to five stars in the country New
Zealand and Australia. Small and one start follows specific policies and regulations, while big or five stars
offer dynamic and worldwide policy.
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
At the time of primary investment in the particular business firm, investors, shareholders, and
organizations regulate some analyses. For improvement, an organization spends a certain amount of
money which is to be explained strategically.
Profitability
It is the need and wants as well as the purpose of every firm and organization for maintaining their
position and goodwill in the market. Before making any decision the degree of return of the invested
capital to be facilitated and aggregate cost need to be identified.
Growth
It indicates business development in terms of monetary and economic. After adopting this, the
product life cycle and asset utilization would be considered by examining the quantity of activity
performed in the business organization.
Providing quality products and services to customers
For attracting more and more customers towards particular goods or services organization tries to make
quality goods and services at a reasonable price level. If the industry produces good quality products,
then customers are ready to pay high prices for the same. It helps organizations to make more profit and
outcomes during the period. It also increases the goodwill of the firm in the marketplace. This type of
implementation in the production process wants higher speculation and direction.
Adhering to:
o codes of conduct
o environmental sustainability philosophies and practices
Outside challenges and issues generally come up at the time of fixing the necessary resources for board
selection. The accreditation scheme and code of conduct may be direct according to the way the choice
should be made. For example, the Star Rating Australian Accommodation differentiation scheme
includes a huge range of comprises increments and adjustments from one start to five starts in the
country New Zealand and Australia. Small and one start follows specific policies and regulations, while
big or five stars offers dynamic and worldwide policy. 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
At the time of primary investment in the particular business firm, investors, shareholders, and
organisations regulate some analyses. For improvement, the organisation spends a certain amount of
money which is to be explained strategically.

2. Provide 8 examples of different types of physical assets required by tourism, hospitality and event
organisations:
Responses
1. PCs, laptops and other related structure
2. Buildings and plant
3. Gardens and parks
4. Rides and Games
5. Vehicles ( buses, cars, motorcycle)
6. Equipment Fixtures
7. Containers
8. Pools
3. List 5 physical assets relevant to your workplace or training and provide the maintenance details typically
required for each:
Physical asset Maintenance requirements
1. PCs and laptops It is the best way to record each and every client data
or other specific element information.
2. Buildings and plant In food court and restaurants especially service of
employees and staff matter a lot to guests.
3. Equipment fixtures Consumers are largely attracted by better
surroundings and the environment. The stylist and
trendy interior of the organization or workplace
offers a good quantity of customers.
4. Rides and Games Nowadays people are more attracted to games and
rides. Hence, it is an effective way to attract more
consumers, especially kids.
4. Containers For serving any kind of food any liquor containers or
vessels are important. So, collect and available best
quality of vessels in the business firm for consumers.

5. 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. Depreciation
2. Life cycle
3. Cost of Assets
4. Fixture & Repair
5. Cost-benefit examination
6. Strategic plan for a long period as well as short period
Involvement
Administration of assets is a necessary practice for maintaining the practice of planning to offer all
useful implications which the business organization may suffer. The management team must do
the work collectively by assuring that work should be done on time by maintaining quality.

5. The following are parameters that 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 currently a financial plan put away for this buy? Is the picked thing under the money related
limit? Assuming there would anything say anything that should be changed in the spending plan to help
the speculation? What impact will this have on the organization's other functional regions?
Environmental sustainability policies for the business
Resource buys ought to be steady with the organization's ecological regulations. To ensure that the
right resources are picked, norms ought to for sure be arranged that detail carbon, streamlining, and
continuous asset use, in addition to other things
Site plans
Real cutoff points, such as passageway estimates or quiet areas for a single piece of hardware to fit,
may need to be taken care of. It is fundamental to understand how well the product will be used within
the organization, whether it will improve, or how it will fit into the cycle. For example, a different
collection of kitchenware might need to fit into a specific area of the café to avoid impeding
representative growth or thing work processes.
Auxiliary items
It may be necessary to check elective conditions for a specific resource to see if there are any
additional related items that need to be purchased, secured, or installed. Hardware, adornments, and
extras might be required to complete or develop the central property.
Performance requirements
The asset must determine the appropriate result levels as well as other aspects of its operation if it is to
be used in the improvement of a convention or as a component of such a center help. Considerable
factors include points of view like the volume of products produced on a consistent basis, the speed at
which tasks are completed, and the level of proficiency with which they are accomplished.
Suitability to products and services offered
Each item needs to be carefully examined to ensure that it is appropriate for objective use. An
organization's products and services should be continuously assessed to make sure the proper
administration style and client outcomes can be achieved. For example, a car should be suitable for a
particular purpose.
6. Which details need to be recorded in an asset register for each physical asset?
Responses
Each protest's coding scheme can be represented as a standard identification scanner with a copy that
is closely related to the resource. This makes it easier to keep an eye on and recognize everything.
This materialistic approach to archiving improves the effectiveness of stocktaking and aids in the
prevention of theft. The executive resource vault will keep track of each resource's historical
context.

7. Provide an overview of the features, advantages and disadvantages of each of the following financing
options when acquiring assets:
1. Hire purchase
Pros Cons
Lower acquisition of capital spending Expiration of the rental property is expensive
Purchasing of property is done, after completing
the period of the lease.
Assets are not fully controlled by the owner.
2. Lease
Pros Cons
Maximize flexibly and offers growth in monetary
form.
No guarantee of fixed pay, lease renewal
increases as per their necessity.
Capability to stay updated with fresh and new
innovations.
Cost of maintenance every time.
3. Purchase
Advantages Disadvantages
Complete control of assets The flow of money influenced adversely at any
time
It is important for capital gain Huge risk in acquiring assets
4. Rent
Advantages Disadvantages
It is helpful to deduct the cost Not being owned
No upkeep expenses High price of using

8. Explain the methods for calculating the depreciation of assets using each of the following methods:
Prime cost method
It is also known as the straight-line method, and it is used to determine the resource's depreciable value.
This method consistently deducts the right amount up until the resource is useful. When registering the
sum, it takes into account the following three factors:
1. Cost price
2. Expected Lifetime
3. The anticipated residual value
Annual depreciation amount = (cost - residual value) ÷ life
Diminishing Value Method
It is likewise alluded to as the amount that is consistently subtracted at a specific rate. It consistently
varies.
Formula to calculate Diminishing Value Method is
Depreciation sum = base value * (days held ÷ 365) * (200% ÷ asset's effective life)
9. 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/Income-and-deductions-for-business/Depreciating-assets/Simpler-
depreciation-for-small-business/
Responses
There are various reasons why things deteriorate. Office furniture typically loses value due to
programming depreciation, which implies that newer technology will easily defeat more seasoned
equipment. Modern crumbling occurs whenever the resources are not frequently anticipated, which
results in a reduction in the amount requested or administration promoted. The majority of the time, the
breakdown is what causes office furniture to degrade. Devaluation has little effect because innovation in
office equipment moves much more slowly than it does in registration. Hardware that is frequently used
may deteriorate due to the damage it causes.

10. 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 expected for support
2. Maintenance is required
3. Maintenance tasks are anticipated to take a specific measure of time.
4. For instance, an administration area that can be performed away from areas with heavy traffic
Aspects to consider
Arranged support aims to keep the business operating flawlessly in all respects. A business should adhere
to a strict standard of cleanliness and professionalism that visitors expect. Although it must be done with
a minimum amount of irritation to routine support, it must also be done with a minimum amount of
irritation to visitors and workers.
11. 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
Making use of recycle water It is very important topic that specifies water is
necessary for living being to survive. Therefore,
utilise or save the water by reducing wastage and
recycling.
Reduction in electricity use It is the second most important element in the
modern world because it is the base factor that
helps business firm, industries and factories as well
as households to make their work easy and quick. It
is a necessity of every person life. Hence, it is
important to save the energy by utilising the
wastage.
Water waste from sinking. Traditional fixtures can stream up to 3 gallons per
second, but low-stream spigots can only stream 1.5
gallons per second. Repair those breaks and replace
the washers. Beyond being annoying, that constant
drip represents a massive waste of water.