Exam 4: Finance Accounting in Food and Beverage

A business starts the accounting period with 4,000 in local currency in cash. The following facts are known about the period: real estate depreciation of 1,000; combined debt service payment to bank of 3,500 (2,500 interest and 1,000 installment); receipt of 500 from accounts receiveable from the previous quarter; 5,500 in cash sales; 2,000 in credit sales. Calculate the amount of cash at the end of the quarter.

What is the total flexible variable cost variance ("Level 2"), assuming all variable expenses are materials-related?

The maintenance department of the Royal Air Force Club calculate that the standard direct labour cost of painting 10 square meters of the building's external walls of is 1 hour of labour at £16 per hour. During the 12-week summer season, they painted 20,000 square meters and the direct labour cost was £29,250 for 2,250 hours of work. What is the Total Direct Labour Cost Variance?

Expenses can be linked to:

What is the objective of engagnig in variance analysis?

What is a discretionary fixed cost?

Consider the following two statements from F&B management practice: i) Normally, a F&B Manager is expected to stay within 3% of their targeted food cost, ii) Actual food cost being under budget could be cause for concern. Which of these statements are true?

The Lucky Inn budgeted revenue of $12,000 during a period when $10,000 was actually generated. What was the percentage variance for the period?

A local business college has 600 students and 60 employees. In recent years, due to the increasing popularity of the programs, the classrooms and lecture theatres have been becoming increasingly crowded. Next year, the number of students is expected to increase to 700 students, requiring the employment an an extra 6 staff and delivery of some classes in the evenings. Student numbers are expected to increase to 1,000 within the next 5 years. The Board of Governers have decided to extend the current building in order to cope with this increase in numbers. The cost of this extension is expected to be €35m. This is an example of:

For the first week of May, a hotel club budgeted for 600 room nights at an average room rate of €65. Actual room nights for the week totalled 500, at an average room rate of €70. The price variance for the week was ______ and the quantity variance for the week was ______?

In what order are the following reports drawn up?

What is an essential difference between a forecast and a budget?

The Rooms director of the Swansea Best Western is preparing a rooms budget for 2018. Estimated rooms occupancy: 80%; Number of keys: 100; Average Daily Rate (ADR): $67.50; Variable Labour: $5 per sold room, Fixed (Annual) Labour: $100,000; Other expenses: $2.50 per sold room. What is the budgeted Rooms departmental profit for the year?

Fill in the blanks in this "rule of thumb" used by many F&B managers: "Food cost and Labor cost could be _____ and _____ of revenue, leaving ______ for other expenses and profit."

What is the difference between the actual amounts and the flexible amounts for the actual output achieved called?