Essentials of Finance in Tourism and Hospitality

Transcription

1 EFTH Essentials of Finance in Tourism and Hospitality Examination Date: 19 th January 2016 Time: to Instructions Three hours are allowed for this paper which carries a total of 200 marks Read these instructions carefully before answering any questions A non-programmable calculator may be used during this examination Do not begin writing until instructed to by the invigilator Make sure that your name, date of birth, CTH membership number and centre name are clearly marked on each page of the answer sheet and any other material you hand in. You are allowed 10 minutes to read through this paper before the examination starts. There are four questions in this examination and all questions are compulsory You are advised to spend 45 minutes on each question. You must attempt all questions to gain a pass. The number of marks allocated to each question is given next to the question and you should spend time in accordance with that allocation. You may find it helpful to make rough notes in the answer booklet; these notes should be crossed out before handing the booklet in. Answer each new question on a new page and leave some blank lines between each part of the question. The answer booklet and the question paper must both be handed in to the invigilator before you leave the examination room. Copyright CTH January 2016

2 EFTH EXAMINATION VALIDATION RECORD The Learning outcomes and assessment criteria for the Essentials of Finance in Tourism and Hospitality unit are as follows. Please ensure that when you answer the questions on pages 3 and 4 that you answer every sub section of every question. This page is for background information on the unit only and is not part of the examination. Students must show that they meet the Learning Outcomes (LOs) and Assessment Criteria (AC) of the unit of assessment. Therefore, consideration will be given to whether candidates achieved the following: Learning Outcome 1: Understand the principles of controlling finance in tourism and hospitality 1.1 Describe the financial liabilities of different types of organisation and the reasons for measuring financial performance 1.2 Describe the meaning of different accounting terms 1.3 Explain the structure and use of a budget and the uses of cash flow and liquidity 1.4 Explain the factors to be taken into account when costing a menu or tour 1.5 Calculate mark-up and net profit percentages of a menu or tour 1.6 Identify profitable and unprofitable parts of a hospitality or tourism business Learning Outcome 2: Understand how to interpret financial statements in tourism and hospitality 2.1 Explain the purpose of annual accounts 2.2 Describe the structure of statutory financial statements and how they relate to each other 2.3 Explain the difference between statutory and non-statutory financial statements 2.4 Explain the use of management accounts 2.5 Explain the purpose of accounting ratios in management accounting Learning Outcome 3: Understand the use of IT to support financial management in the tourism and hospitality industry 3.1 Explain how IT is used to support financial management in the tourism and hospitality industry 3.2 Record and reconcile daily income and outgoings using a spreadsheet 3.3 Explain the uses of Access databases for financial purposes in the tourism and hospitality industry Copyright CTH January 2016

3 Exam s - Essentials of Finance in Tourism and Hospitality Please note: all questions are compulsory QUESTION ONE - 50 marks Discuss the financial liabilities of two different types of organisation. Explain why each should measure financial performance, giving detailed reasons. Explain how a finance department of a hotel, tour operator or travel agency would be able to identify its profitable and unprofitable departments. 1.3 Give three functions of budgeting, and identify two factors that managers need to take into account when preparing budgets. 1.4 Describe the meaning of the following accounting terms: a) Break-even b) Fixed cost c) Cash flow statement d) Liability 50 marks Copyright CTH January 2016

4 QUESTION TWO - 50 marks 2.1 Compare and contrast three different accounting ratios. Discuss their advantages and limitations. 2.2 Calculate the current ratio for the following 2 travel agencies: Current Assets Stock Debtors Cash Current Liabilities Creditors Bank overdraft Ski Resort Tropical Travel Travel 15,000 30,000 10,000 Explain which business has the highest liquidity. 30,000 85,000 45,000 50,000 25, Explain three purposes of accounting ratios in management accounting. 2.4 Explain the term mark-up and discuss the factors that should be taken into account when costing a banqueting menu. 2.5 Your travel company has collated the following information about the costs of a three-day break to Brussels: The maximum capacity of seats on the coach is 50. The cost of the coach for the return journey to Brussels and its use during the holiday is 1,500. Port taxes will be 10 per person. The Palace Hotel has quoted a cost of 120 per night for a twin room. All rooms will be occupied by two people. i. What would the selling price be if the mark up is 30%? ii. iii. What would the selling price be if the target is to breakeven with 40 customers? How much profit would be made if all 50 seats were sold at this price? 50 marks Copyright CTH January 2016

5 QUESTION THREE - 50 marks 3 For a hotel, travel agency or tour operator of your choice answer the following: a) Explain why they would prepare accounts on an annual basis. b) Compare the differences between a statutory and a nonstatutory financial statement. c) Describe two statutory financial statements the business should prepare, and discuss the advantages of each to the business. d) Describe how the business would use management accounts. Give an explanation of who would use the information presented in the management accounts. 50 marks QUESTION FOUR - 50 marks 4 For a hotel, travel agency or tour operator of your choice answer the following: a) Explain how the business can use IT to support financial management. b) Design a spreadsheet to record how income and expenditure can be reconciled on a daily basis. Explain the headings you have chosen, and how you would use the spreadsheet. c) Discuss three ways the chosen business can use Microsoft Access for financial purposes. 50 marks Copyright CTH January 2016

6 FBO Food and Beverage Operations Examination Date: 21 st January 2016 Time: to Three hours are allowed for this paper which carries a total of 100 marks Read these instructions carefully before answering any questions Do not begin writing until instructed to by the invigilator Make sure that your name, date of birth, CTH membership number and centre name are clearly marked on each page of the answer sheet and any other material you hand in. You are allowed 10 minutes to read through this paper before the examination starts. You must attempt all questions to gain a pass. The number of marks allocated to each question is given next to the question and you should spend time in accordance with that allocation. You may find it helpful to make rough notes in the answer booklet; these notes should be crossed out before handing the booklet in. Answer each new question on a new page and leave some blank lines between each part of the question. The answer booklet and the question paper must both be handed in to the invigilator before you leave the examination room.

7 Food and Beverage Operations FBO EXAMINATION RECORD The Learning outcomes and assessment criteria for the Food and Beverage Operations unit are as follows. Please ensure that when you answer the questions on pages 3 and 4 that you do answer every sub section of every question. This page is for background information on the unit only and is not part of the examination. Students must show that they meet the Learning Outcomes (LOs) and Assessment Criteria (AC) of the unit of assessment. Therefore, consideration will be given to whether candidates achieved the following: Learning Outcome 1: Understand the principles of food and beverage operations 1.1 Describe typical organisational structures and roles in food and beverage operations 1.2 Describe different kinds of food operations 1.3 Identify the nature of the meal or event for which service is required 1.4 Explain how menus and wine lists are structured 1.5 Describe how to comply with hygiene, health and safety standards and legislation 1.6 Explain how to maintain food and beverage stock levels Learning Outcome 2: Understand food production operations 2.1 Identify the ingredients needed and explain how to prepare them to the required standard in the correct sequence 2.2 Explain the suitability of different cooking methods and equipment for different dishes 2.3 Explain how to present dishes in accordance with organisational standards 2.4 Identify organisational purchasing procedures 2.5 Explain storage methods that are appropriate to different food items Learning Outcome 3: Understand food and beverage service 3.1 Describe organisational standards and timings in setting up for food and beverage service 3.2 Describe how to serve food and beverages in accordance with organisational standards 3.3 Explain the customer care service required in a food and beverage department 3.4 Describe how to calculate and present accurate bills in different payment forms 3.5 Explain the requirements of hygiene in food and beverage service Copyright CTH January 2016

8 Food and Beverage Operations EXAM QUESTIONS Please note: ALL questions are compulsory All questions are compulsory and carry a total of 100 marks 1 The four-star Desert Sands Resort Hotel has 100 bedrooms in the main building and 75 bungalows situated in the grounds. The hotel is beautifully situated with direct access to the beach. Its main clientele are residents however The Sands Restaurant, the hotels a la carte restaurant, is very well known to locals as a special place to celebrate an anniversary or special birthday. The Hotel has two other restaurants as well as a cocktail bar and a pool bar. 1.1 The hotel will undergo a refurbishment of its food and beverage operations in Recommend, with reasons, two food and beverage outlets the hotel should include in the upgrade. 1.2 Describe an effective organisational structure for the Sands Restaurant. Discuss two different roles within that structure. 1.3 The hotel has been approached to hold a wedding ceremony and reception for 90 people in July a) recommend to the organiser the type of event the hotel could provide b) prepare a menu for the event, give reasons for your choices c) explain how you would comply with hygiene, health and safety standards during the event. 1.4 Explain how the hotel would maintain stock levels of alcoholic and non-alcoholic beverages. 40 marks Copyright CTH January 2016

9 Food and Beverage Operations 2 The 60-seater outdoor cafe in the Desert Sands Resort Hotel is open from to each day serving lunch and dinner as well as snacks and beverages throughout the day. It has its own small kitchen adjacent to the cafe. 2.1 Explain the preparation and cooking of two different hot items on the lunch menu. In your answer discuss why detailed food presentation standards are essential. 2.2 Compare the cooking methods and equipment required for two different snack dishes on the cafe menu. 2.3 Recommend the purchasing procedures for high cost food items at the Desert Sands Resort Hotel. 30 marks You are the manager of the hotel coffee shop. Following guest comments the hotel director has asked you to prepare a report on the benefits of a self-service buffet over table service at lunchtime. Explain what needs to be taken into consideration to ensure the service standards, hygiene standards and timings are addressed during the lunch period. 3.2 Explain the key factors to consider when taking payment from customers in a hotel coffee shop. 3.3 Compare and contrast the service standards for a luxury restaurant and a coffee shop in a 5-star hotel. 30 marks Copyright CTH January 2016

10 FTH Finance in Tourism and Hospitality Examination Date: 19 th January 2016 Time: to Instructions Three hours are allowed for this paper which carries a total of 100 marks A non-programmable calculator may be used during this examination Do not begin writing until instructed to by the invigilator Read these instructions carefully before answering any questions Make sure that your name, date of birth, CTH membership number and centre name are clearly marked on each page of the answer sheet and any other material you hand in. You are allowed 10 minutes to read through this paper before the examination starts. There are five questions in this examination and all questions are compulsory You must attempt all questions to gain a pass. The number of marks allocated to each question is given next to the question and you should spend time in accordance with that allocation. You may find it helpful to make rough notes in the answer booklet; these notes should be crossed out before handing the booklet in. Answer each new question on a new page and leave some blank lines between each part of the question. The answer booklet and the question paper must both be handed in to the invigilator before you leave the examination room. Copyright CTH January 2016

11 FTH EXAMINATION VALIDATION RECORD The Learning outcomes and assessment criteria for the Finance in Tourism and Hospitality unit are as follows. Please ensure that when you answer the questions on pages 3 and 4 that you do answer every sub section of every question. This page is for background information on the unit only and is not part of the examination. Students must show that they meet the Learning Outcomes (LOs) and Assessment Criteria (AC) of the unit of assessment. Therefore, consideration will be given to whether students achieved the following: Learning Outcome 1: Understand the sources of income generation and other funding in the tourism and hospitality industry. 1.1 Describe sources of income generation. 1.2 Describe sources of funding. Learning Outcome 2: Understand the operation of the business in terms of the elements of costs. 2.1 Describe the elements of cost found within the tourism and hospitality industry. 2.2 Describe some of the key aspects of effective control systems for high value assets. Learning Outcome 3: Be able to apply the concept of marginal costing to price setting, particularly as applied to those costs which change with time or level of activity 3.1 Identify operations when this is a useful tool. 3.2 Calculate marginal costs and apply the result to pricing decisions. Learning Outcome 4: Be able to prepare budgets and compare budgets with actual results 4.1 Explain the main reasons for using budgets, and some of their limitations. 4.2 Prepare relevant operating budgets. 4.3 Calculate variances between given actual and budgeted figures and comment on the results. Learning Outcome 5: Be able to interpret business performance from profit and loss statements and balance sheets using ratios and percentages. 5.1 Use a number of tools to analyse a given business performance to include basic sales, liquidity, efficiency and financial ratios. Copyright CTH January 2016

12 Exam s - Finance in Tourism and Hospitality Please note: all questions are compulsory QUESTION ONE - 20 marks 1.1 Describe three of the main sources of regular income for a hotel. Explain which one of these can be seen as the most important for the long term success of the business. 1.2 The business you work for has an opportunity to expand by buying the next door property. Give three examples of external funding which could be used to finance this, explaining how the external funder will be rewarded. 20 marks QUESTION TWO - 20 marks 2.1 Which of the elements of cost are most easily controlled by a firm, and which are less controllable. Give clear examples and explanations. 2.2 a) What is a bank reconciliation statement? b) Explain how you would produce a bank reconciliation statement and what it may show the firm. 20 marks Copyright CTH January 2016

13 QUESTION THREE - 20 marks 3.1 What does the marginal cost of production mean? Explain why some firms will use marginal costing when setting prices, and give two examples of tourism and hospitality firms where this is not a good way to set prices. 3.2 The Sayonara Hotel has 200 double bedrooms and is in the centre of a major middle eastern city. Fixed costs for the rooms division department are 4,368,000 per year, and the variable costs are 6 per person per night. The hotel sells 54,750 guest-nights per year at 140 for a double room. A tour operator has approached you to see if you can sell them 20 rooms a week all year round at 50 a room. This will require you to take on some more housekeeping staff which will increase costs by 280 a week. 20 marks What would your response be? Explain your answer, and be sure to include both financial and non-financial reasons. QUESTION FOUR - 20 marks 4.1 Roland Ratzenberger is planning to purchase a restaurant from its current owner. He will have to borrow 250,000 at 9% interest to buy the business. Once he has paid for the business he will have 40,000 in cash to start trading. From the following information draw up his cash budget for the next 6 months. Sales per month of 33,350, of which 25% will be on one month s credit. His purchases will be 13,340 per month, of which 5,250 will be on one month s credit. He will pay himself 2,000 a month. His wage bill will be 8,000 a month, and overheads will be 8,000 a month including 1,000 a month depreciation. He will have to pay the interest on his loan every 3 months. Comment on what the figures show you. 12 marks 4.2 Using the figures given in section 4.1 above produce a budgeted trading and profit and loss account for the first 6 months of Roland Ratzenberger s restaurant. Comment on what the figures show you 8 marks Copyright CTH January 2016

14 QUESTION FIVE - 20 marks 5 The following figures relate to a hospitality business. 35% of all sales and 80% of all purchases are on credit. Using accepted ratios and percentages comment on the gross and net profits, the current ratio and the acid test, debtors and creditors payment periods, stock turnover, and return on capital employed. Trading and profit and loss account for year ending December 31st 's 000's ,000 Sales 62,000 24,000 Cost of sales 28,000 36,000 Gross profit 34,000 15,000 Wages 14,500 21,000 Net margin 19,500 9,750 Other expenses 8,000 11,250 Net profit 11,500 Balance sheet as at December 31st ,000 Freehold property 50,000 5,000 equipment 5,500 50,000 55,500 Current Assets 1,500 stock 1, debtors 1, bank 1, ,100 less Current Liabilities 2,825 creditors 2, accruals ,375 3,100 1,000 50,000 56,500 Financed by 42,250 Capital 49,500 11,250 net profit 11,500 53,500 61,000 4,000 drawings 4,500 49,500 56,500 Copyright CTH January 2016

15 RDO Rooms Division Operations Examination Date: 20 th January 2016 Time: to Three hours are allowed for this paper which carries a total of 100 marks Read these instructions carefully before answering any questions Do not begin writing until instructed to by the invigilator Make sure that your name, date of birth, CTH membership number and centre name are clearly marked on each page of the answer sheet and any other material you hand in. You are allowed 10 minutes to read through this paper before the examination starts. You must attempt all questions to gain a pass. The number of marks allocated to each question is given next to the question and you should spend time in accordance with that allocation. You may find it helpful to make rough notes in the answer booklet; these notes should be crossed out before handing the booklet in. Answer each new question on a new page and leave some blank lines between each part of the question. The answer booklet and the question paper must both be handed in to the invigilator before you leave the examination room.

16 Rooms Division Operations RDO EXAMINATION RECORD The Learning outcomes and assessment criteria for the Rooms Division Operations unit are as follows. Please ensure that when you answer the questions on pages 3 and 4 that you do answer every sub section of every question. This page is for background information on the unit only and is not part of the examination. Students must show that they meet the Learning Outcomes (LOs) and Assessment Criteria (AC) of the unit of assessment. Therefore, consideration will be given to whether candidates achieved the following: Learning Outcome 1: Understand rooms division operations (front office and housekeeping departments) 1.1 Define the functions of rooms divisions 1.2 Identify the role and responsibilities of rooms division staff within an organisational structure 1.3 Explain the impact of the guest cycle on rooms division operations 1.4 Explain the components of customer offerings 1.5 Describe organisational customer service standards 1.6 Explain the services to support customers needs Learning Outcome 2: Understand front office processes 2.1 Describe the organisational procedures for reservation, reception and cashiering functions 2.2 Explain how to use manual and electronic systems to track room status 2.3 Explain how to process check-out functions and payments in accordance with organisational procedures and standards 2.4 Explain the use of communication systems Learning Outcome 3: Understand housekeeping operations 3.1 Describe the organisational procedures and standards in the housekeeping, laundries, linen rooms and maintenance departments in a hotel 3.2 Explain how to use safe working practices and minimise the potential for accidents 3.3 Explain how to organise the safe use and storage of cleaning materials 3.4 Explain how to ensure that guest rooms and public areas are clean, safe and secure Copyright CTH January 2016

17 Rooms Division Operations EXAM QUESTIONS Please note: ALL questions are compulsory 1 The Elite Hotel is a 125-bedroom 5-star boutique hotel situated in the theatre district in London. Its clientele are mainly from media, film and theatre, as well as business people from some of London s major companies. 1.1 Recommend an organisational structure for the rooms division department in the Elite Hotel. 1.2 Compare and contrast the function of two different departments within the rooms division department of the Elite Hotel. 1.3 The quality of the guest experience is dependent on the quality of front office operations and the processes in place to handle guest needs. Discuss this statement and give examples to support your answer. 40 marks 1.4 Recommend, with reasons, three business services provided in the Elite Hotel for its guests. 2 The five-star 300-bedroom Palace Hotel in London is near to the Tower of London. It is used by both tourists and business people, and is the flagship hotel of an international group of 25 hotels. 2.1 Describe the organisational procedures for the cashiering department in the Palace Hotel. In your answer also explain how they would process a guest check-out. 2.2 Explain how the rooms division staff would use an electronic system to track room status. 2.3 Discuss the role and responsibilities of the switchboard department in the Palace Hotel. 30 marks Copyright CTH January 2016

18 Rooms Division Operations Compare and contrast the organisational procedures of the laundry and linen room within a housekeeping department. 3.2 Explain how the housekeepers would ensure their staff use safe working practices during their working day. Give examples to support your answer. 3.3 Explain why it is important to store cleaning materials safely. 3.4 Explain how the housekeeping department would ensure that public areas of the hotel are kept clean and secure throughout the day. 30 marks Copyright CTH January 2016