Na m e

BTEC Subsidiary Diploma in Hospitality

Unit 4:

Financial Control in Hospitality

Jon Tofts

UNIT 4: FINANCIAL CONTROL IN HOSPITALITY

Student Name Unit No Unit Title Issue Dat e On time / late Subm ission Date If late actual dat e submitted

4
Unit 4: Financial Controls in Hospitality

Summary of learning outcomes

To achieve this unit you must:

1. Understand the principles of goods selection in hospitality 2. Understand costing and pricing in hospitality 3. Be able to apply controlling and accounting methods for resources in hospitality 4. Understand the use of financial statements to measure hospitality business performance

SCENARIO:
You are about to r e-open a 50 bedroom conference and banqueting facility which you are currently r efurbishing. T he facility will have a training rooms, a r estaurant and accommodati on which you believe fits your vision of offering, high quality service, locally produced and uncomplicated food at a good price . You are aiming to attrac t a wide range of different customer types to your establishment when it opens later on this year , but have already secured a major contract for weekday overnight training for the I nland Revenue Service. You have just empl oyed a Facility Manager, Restaurant Manager and Head Chef, and at this stage you are ensuring they understand your business and accounting methods for the facility.

BTEC HOSP Unit 4 JT 2011

Assignment tasks
TASK 1 (P1 M1 & D1) Task 1 will be assessed through the production of a booklet on goods selection procedures to the goods buyers

To achieve a pass you must cover P1 criteria :

Taking at least three different Hospital ity businesses, show to the three memb ers of staff on the management board, what you determine to be the basic costing and pricing concept s for selecting goods, and how these procedures could impact upon the new business. As the owner of the business, t he model you demonstrate, will be the one they then have to use throughout the busi ness

To increase your grade to cover M1 :

As part of the l iterature you are producing, you must also analyse how goods selection is used wi thin these three businesses, and the key differences which are applied in the m

To increase your grade to cover D1:

You must also assess the benefits of selection, costing and pricing procedures you will be adopting in your business. A suggested way of showing your understanding of this is to trace the steps in organising an event, taking into account all of the goods selection, costing and pricing te chniques using a flow chart and a relevant explanation of each stage

BTEC HOSP Unit 4 JT 2011

TASK 2 (P2 & M2) Task 2 will be assessed through the production of a booklet with the glossary of terms (P2) and the completion of the basic costing exercises (M2)

To achieve a pass you must cover P2:

To be successful, you will need to gui de the new management team on the principles of cos ting and pricing withi n your business. Wi th this in mind, you need to pr oduce a booklet on how cos ting and pricing procedures will be applied, produci ng a glossary of terms for reference

To increase your grade to cover M2

You need to compl ete the given pricing calculations suc cessfully to demons trate a sound knowledge of the following areas: I. II . III . I V. V. VI . VII . Function menu cos ting to include service charge, average spend and VAT Menu costing to include gross profit and mark ups A comparison of menus costings using cost -plus Stock control costi ngs Overnight accommodation to include discounts and allocating categories of costs and VAT Occupancy calculations Special offer pr icings including discounts

BTEC HOSP Unit 4 JT 2011

TASK 3 (P3, M3) Task 3 will be assessed through an individual presentation giving worked examples wherever possible for M3

To achieve a pass you must cover P3:

Following on from P1 & P2, y ou need to prepare a presentation to give an overview to all new staff when they are recruited as part of their induction process, the impor tance of basic control and accounting methods for resour ces which are open to you, to show how well the business is performing, and if this is not happening, what can be done about it

To increase your grade to cover M3

Examples need to be given of how control and accounting methods assists at least three different hos pitality organisations , how to deal with this information, and how it could be used to aid your business

BTEC HOSP Unit 4 JT 2011

TASK 4 (P4, P5 & D2) Task 4 will be assessed through an individual presentation with an analysis of financial information for P5 & D2 as part of the presentation

To achieve a pass you must cover P4 & P5 :

You will need to explain the purpose of financial statements to meet P4 , and to meet P5 you are required to explain how they are used in the operation of hospitality business es. To help you with the completion of P5, you will; be passed an internal report based on a functi on the facility hosted before it was closed for refurbishment

To increase your grade to cover D2

You will be passed a case histor y on a competitors business, in which you will have to explain, analyse and inte rpret their current financial position. Evaluate the impor tance of the financial statements which you r competitor uses in their business and how this could be used as a business aid

Remember you need to: 1. Prepare 2 BOOKLET S so think about the layout and presentat ion. The y should be prepar ed as A4 sheets and then printed out in booklet style, using the appropriate settings on the printer. Proof read your work so you can correct any t yping or spelling errors - presentation is important . Print your booklets a f ew days bef ore the deadline to avoid any last minute technical problems. 2. Check your work to make sure that you have covered ever ything required. 3. Save all your work on your user ar ea and also a copy onto a memory st ick, so that if anything becomes corr upted or lost you still have back up. Unf ortunately a corr upted f ile or lost work only means you have to start again and still meet the deadline! 4. Prepare f or 2 PRESENTATIONS. Guidance will be given in detail, but please remember, again, presentation is imp ortant and you will need to plan weel, support your presentation wit h resources, and deliver it positively and dressed appropr iately f or a business meeting.

BTEC HOSP Unit 4 JT 2011

BTEC Level 3 Diploma in Hospitality UNIT 4 Financial Control in Hospitality Assessment Criteria
To ac hie ve a ME RI T g r a de To ac hie ve a P AS S g r ade yo u r e vi denc e m us t s h o w th a t y o u a re a ble t o: yo u r e vi denc e m us t sh o w th a t, i n a ddit io n t o th e pas s c ri te ri a , y o u a re a ble t o: To ac hie ve a DI S TI N C TION g r ade yo u r e vi denc e m us t sho w th a t, i n a ddi tio n to the p as s a nd me ri t c ri te ri a , y o u a r e a ble t o:

P1 Explain how the principles of goods selection are applied in hospitality operations P2 Describe how c osting and pricing procedures are applied in hospitality operations

M1 Analyse the ways in which the principles of goods selection can be applied differently across the hospitality industry M2 Compare different costing and pricing procedures using accurate calculations completed in industry accepted formats M3 Explain how control and accounting methods assist hospitality businesses, giving worked examples using standard conventions

D1 Assess the value of selection, costing and pricing procedures in the operation of hospitality businesses

P3 Apply control and accounting methods for resources in hospitality businesses

P4 Describe the pur pose of financial statements

D2 Evaluate the importance of financial statements and their use as a business aid

P5 Explain how financial statements are used in the operation of hospitality business es

BTEC HOSP Unit 4 JT 2011

PROJECT FEEDBACK:
Candidate: _________________________________________________________ Course: Edexcel BTEC National Award in Hospitality Unit 4 : Financial controls in hospitality Assignment Title: Lawress Hall Set by: Jon Tofts Marked by: Jon Tofts Satisfies the follo wi ng grading / assessment criteria:

Outcome

Task and grading criteria 1 P1, M1 D1

Evidence (enter page numbers)

Date assessed

Met (Y/N)

1.

2.

3.

4.

Understand the principles of goods selection in hospitality Understand costing and pricing in hospitality Be able to apply controlling and accounting methods for resources in hospitality Understand the use of financial statements to measure hospitality business performance

2 P2, M2 3 P3, M3

4 P4, P5, D2

Learners Declaration : I certify that the work sub mitted for this assignment is my own. Learner signature:____________________________Date:____________________________

BTEC HOSP Unit 4 JT 2011