Manage Finances with a Budget

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Manage Finances Within A Budget Submitted by: Nico Antonio A. Serafin Submitted to: Ma’am Lorejen Salise Based on the variance/diversion report of the TAFE Island Holiday Resort, me and my business partner have interpreted the figures listed in the report and have offered remedies to improve their budget performance. This is their income report: Income Actual Budget Variance TAFE Restaurant $233,278 $205,000 $ 28,278 TAFE Bar $ 36,500 $ 51,300 $ (14,800) Island Coffee Shop $ 14,000 $ 18,500 $ (4,500) Room Service $ 1,840 $ 4,450 $ (2,610) Total Income $285,618 $279,250 $ 6,368 Based on this report, we can tell that a certain area of the resort has exceeded the budget therefore…show more content…
In the Cost of Goods Sold area, the variance is $2,000. Here, they should rethink their strategy in their budget. They should make sure that their budget is enough to cover the actual expense of their products and have more budget in the next order. In the Electricity section, they should consider using energy-saving materials for their resort. Not only they can save in electricity, they can also save in their income. In concern with their repairs, they can save more buy using durable equipment and materials to reduce repair costs and should have maintenance every day to make sure that damages can be reduced, therefor reducing the cost of repairs. Administration Costs, here the budget should be a little higher than $2,250. It should be at least $3,000 or more but not too high. Administration should be able to use the budget efficiently. Responsibility centers are recommended in this matter to further help the resort in budgetary controls. Wages in Catering and Beverages have no need for improvement, it is in a good state and is with balance with income and expenses just make sure that the service is good enough to equal the wages to the staff. In the Advertising section, the budget is ok and in the actual, you can use it in making new advertising
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