THH3113: Cost and Performance Management - Group Case Study

This case study analyzes the cost drivers and performance management of Sunshine Continental Hotel Pty. Ltd., focusing on the factors influencing its expenses and profitability. The analysis identifies key cost drivers such as labor hours (particularly for casual employees), electricity consumption, and marketing activities. The study examines the variances between budgeted and actual costs, highlighting areas where the hotel can implement cost control measures, including optimizing staffing levels, managing marketing expenses, and negotiating credit card commission rates. The report also explores the concept of break-even analysis and its importance in determining the minimum level of business required for the hotel to operate without incurring losses. The provided analysis includes the cost driver for each expense, variance analysis, and suggested cost control measures to improve the financial performance of the hotel.