UNIT 2

BUDGETING
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I

KAJAL VERMA
24.07.23
SCOPE
01 INTRODUCTION 04 FACTORS AFFECTING
BUDGET PLANNING

TYPES OF BUDGET &

02 BUDGET CYCLE 05 CONCLUSION

MAKING FRONT OFFICE

03 BUDGET
INTRODUCTION
What is Budget ?

It is the money that is available to a person or an

organization, and a plan of how it will be spent over a period
of time
A statement of expected/ projected expenditure constructed
from anticipated/ projected revenue and available financial
resources for a period of time, usually one year

B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA

 TYPES OF BUDGET

1 2 3 4 5
CAPITAL OPERATING FIXED BUDGET FLEXIBLE CASH BUDGET
EXPENITURE BUDGET BUDGET
BUDGET
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA
 TYPES OF BUDGET

6 7 8 9
MASTER DEPARTMENTAL ADMINISTRATIVE
SALES BUDGET
BUDGET BUDGET OVERHEAD BUDGET

B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA

 BUDGET
CYCLE

B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA

 MAKING FRONT OFFICE
BUDGET
Front office is major revenue
It includes departmental master
budget of Front office
It must include budget for each
section of Front Office
While preparing budget guidance is
taken from past figures and
information
Upon approval , any deviations must
be observed, recorded and notified

B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA

FACTORS AFFECTING
BUDGET PLANNING
1. Number of arrivals expected
2. Volume of sales
3. Competitive environment
4. Manpower
5. Level & variety of service
6. Quality of management
7. Other factors
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA
BUDGETARY CONTROL
Budgetary control, is the financial control through
the proper implementation of budget , which
means fixing responsibilities among the
concerned managers for any deviations
that may result between budgeted
and actual results.
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA
ESSENTIAL OF EFFECTIVE
BUDGETARY CONTROL
Quick reporting
Seriousness in implementation
Responsibility matched by authority
Rewards and Punishments
Flexibility
Have patience
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA
 REFINING BUDGET
If the actual operating figures and budgeted figures
are distant from each other, then this suggests a
refining or revision of our budget.
revision of room demand
estimated room revenue
rooms direct expenses
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA
ADVANTAGES OF BUDGET AND
BUDGETARY CONTROL
Eliminates uncertainty
Result of various brains
Good incentives to workers at time
Optimum use of capital resources
Easy availbility of working capital
Effective coordination
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA
 LIMITATIONS OF BUDGETING
Budget are estimates and can never be 100%
Its a tool for efficient management and not a
substitute for it.
Budgets cannot guide as to what action
should be taken.
Budgeting entails the danger of inflexibility
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA
 LIMITATIONS OF BUDGETING

Budgeting is a time-consuming process which

involves expenses
Budgeting goals may lead people to
supersede the enterprise goals

B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA

 PREVIOUS YEAR
QUESTIONS
List and explain the different
stages/steps in a budget cycle(10)
What are budgets? Explain the different
types of budgets.(10)
What are the various factors which affect
budgeting(10)
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA
 PREVIOUS YEAR
QUESTIONS
Elucidate: (a) Objectives of budgetary control.
(b) Limitations of budgeting. (5+5=10) OR
Define Budget, Budgeting and Budgetary
Control. (b) What are the uses of Front Office
Departmental budget to the hotel? (6+4=10)

B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA

 HAVE A
NICE DAY AHEAD !!
B.SC. V SEMESTER - FRONT OFFICE MANAGEMENT-I KAJAL VERMA