CAI1AL

Cash or goods used Lo generaLe lncome elLher by

lnvesLlng ln a buslness or a dlfferenL lncome properLy
copito/ sources con be obtoined throuqh
@o apply Lo a bank for a loan (Loan CaplLal)
@o lnvlLe frlends Lo puL ln money (Share CaplLal)
copito/ con be divided into three oreos
lxed lLems/ AsseLs @hlngs LhaL we need Lo purchase Lo geL Lhe buslness sLarLed
Lxp bulldlng cooker frldges Lable chalr eLc
CperaLlng lLems/ Supplles @hlngs LhaL we need for day Lo day runnlng of Lhe buslness
Lxp SLaLlonary menus crockery cuLlery unlforms eLc
Worklng Lxpenses CosL of Sales and CLher Lxpenses
Lxp food drlnk laundry and sLaLlonary eLc
kCII1
@he poslLlve galn from an lnvesLmenL or buslness operaLlon
afLer subLracLlng for all expenses CpposlLe of loss
I|xed
Cperat|ng Cost
Lxpected Cash
I|ow
roduct r|ce
kevenue
kCII1 CCLL
kCSS kCII1
ross roflL ls Lhe selllng prlce of a producL less vA@ (value added Lax)
and less Lhe cosL of Lhe producL
@o geL percenLage of dlvlde Lhe gross proflL lnLo Lhe neL selllng
prlce
ross
rof|t
roduct
Se|||ng r|ce
VA1 Product
Cost
kLVLNUL
or a company Lhls ls Lhe LoLal amounL of money recelved by Lhe company for
goods sold or servlces provlded durlng a cerLaln Llme perlod lL also lncludes all
neL sales exchange of asseLs lnLeresL and any oLher lncrease ln owners equlLy
and ls calculaLed before any expenses are subLracLed
Net income con be co/cu/oted by subtroctinq expenses from revenue
I|xed

Cperat|ng Cost
kevenue
Net
Income
kevenue Center |n note|
ooms
ood
8everages
8anqueLs
Conference MeeLlng ooms
@elephone
Lelsure aclllLles
@ransporLaLlon Servlce
Laundry Servlce
8uslness Servlce
LLc dll dsb
LkLNSLS
lxed Lxpenses
lxed Lxpenses are Lhose LhaL do noL flucLuaLe wlLh changes ln
producLlon acLlvlLy level or sales volume such as renL lnsurance
dues and subscrlpLlons equlpmenL leases paymenLs on loans
depreclaLlon managemenL salarles and adverLlslng
varlable Lxpenses
varlable Lxpenses are Lhose LhaL respond dlrecLly and proporLlonaLely
Lo changes ln acLlvlLy level or volume such as raw maLerlals hourly
wages and commlsslons uLlllLles lnvenLory offlce supplles and
packaglng malllng and shlpplng cosLs
We have conLrol over on our varlable Lxpenses because Lhose expenses
are conLrollable LhaL can have dlrecL lmpacL on our proflLablllLy
Lxpl
reuslng paper looklng afLer Lhe unlform llghL uslng conLrol LLc
UDL1
An lLemlzed forecasL of an lndlvlduals or companys lncome and
expenses expecLed for some perlod ln Lhe fuLure
8y keeplng Lrack of where ones money goes one may be less llkely Lo
overspend and more llkely Lo meeL Lhelr flnanclal goals
A budgeL should relaLe Lhe overall plan ln flgures lL ls
dlfferenL from a forecasL ln Lhe sense LhaL Lhe plan and
Lherefore Lhe budgeL seLs mlnlmum requlremenLs
whereas a forecasL ls usually an expecLaLlon of whaL ls
llkely Lo happen
8udgeL ls more accuraLe Lhan forecasL A budgeL can be
had from hlsLorlc daLa whereas forecasL looks lnLo Lhe
fuLure Lrends
ulllkNc5 81wN 8uu61 4Nu lOkc451
L (rof|t and Lost)
9 {9rofit ond ost) ecord of whaL was earned and whaL was spenL by Lhe
hoLel durlng Lhe parLlcular monLh ln quesLlon
consist of
Sales
Lxpenses/ CosL (flxed cosL varlable cosL mlscellaneous cosL)
ross proflL C
8udgeL
AcLual and orecasL
AudlL
lnspecLlon or checklng of Lhe accounLlng records and procedures of a
buslness or oLher reporLlng enLlLy by a Lralned accounLanL for Lhe purpose
of verlfylng Lhe accuracy and compleLeness of Lhe records lL may be
conducLed by a member of Lhe organlzaLlon (lnLernal audlL) or by an
ouLslder (lndependenL audlL)
Jhy aud|t needed |n company?
@o ensure Lhe accuracy and compleLeness of Lhe records or as an
ad[usLmenL Lo ensure LhaL Lhe revenue was correcL as a real daLa
@o ensure sLaff/ labor accounLablllLy and lnLegrlLy
Jhat happen |f no aud|t execute |n company?
5evero/ coses cou/d be hoppen such os
raud
Lrror lncorrecL lgure
unrellable lnformaLlon
MlsLrusL
SLafflng lssue
Consequence for managemenL are doubL
nC1LL IINANCIAL
kL INDICA1Ck
Cccupancy kate (Ck)
Average koom kate (Akk)
Departmenta| Cost of Sa|es ercentages
ayro|| ercentage
ross Cperat|ng rof|t ercentage
Cccupancy kate (Ck)
3 ,ccord,3ce with the U3iform System of Accou3ts for Hotels the tot,l occup,3cy
r,te for the hotel for ,3y give3 period should be c,lcul,ted ,s follows:


where :
1. s the tot,l 3umber of guest rooms i3 the hotel
2. s the 3umber of perm,3e3t house use rooms ("those guest rooms removed
from s,le,ble i3ve3tory for ,3 exte3ded period of time)
3. s the 3umber of rooms out of order for exte3ded periods (removed from
s,le,ble i3ve3tory due to re3ov,tio3 or problems re3deri3g them i3,dequ,te for
occup,3cy over lo3g periods)
4. s the 3umber of v,c,3t rooms (s,le,ble guest rooms 3ot occupied)
5. The result multiplied by 100 will reflect ,3 occup,3cy perce3t,ge.
Average koom kate (Akk)
lven as
Net kooms kevenue
Number of kooms Cccup|ed by uests
where
-neL ooms evenue ls LoLal ooms evenue less such lLems as subsequenL
rebaLes or slmllar amounLs ldenLlfled and any amounLs such as room Laxes LhaL
are collecLed on behalf of some overnmenL or oLher body and pald dlrecLly ouL
so LhaL Lhe revenue does noL sLay wlLh Lhe hoLel
-number of ooms Cccupled by uesLs lncludes all renLed" rooms boLh pald and
compllmenLary rooms occupled by guesLs and excludes house use rooms vacanL
and ouL of order rooms
Departmenta| Cost of Sa|es ercentages
MosL commonly calculaLed over a perlod as follows
(1) + (2) (3) (4) (S)
Net Departmenta| kevenue
where
1 value of sLock ln Lhe deparLmenL aL Lhe beglnnlng of Lhe perlod ln revlew
2 value of LoLal addlLlons of sLock ln Lhe deparLmenL for Lhe perlod of revlew
3 value of sLock Lransferred Lo anoLher hoLel deparLmenL and noL sold
4 value of sLock ln Lhe deparLmenL aL Lhe end of Lhe perlod ln revlew
3 value of any sLock charged Lo expenses for reasons such as employee's use enLerLalnmenL glve
aways eLc
-neL ueparLmenL evenue ls LoLal ueparLmenL evenue for Lhe perlod less such lLems as subsequenL
rebaLes or slmllar amounLs ldenLlfled and any amounLs such as Laxes LhaL are collecLed on behalf of
some overnmenL or oLher body and pald dlrecLly ouL so LhaL Lhe revenue does noL sLay wlLh Lhe
hoLel
-@he resulL mulLlplled by 100 wlll reflecL a cosL of sales percenLage
ayro|| ercentage
@he payroll percenLage for Lhe LoLal should be calculaLed as
1ota| ayro|| Cost
note| Net kevenue
where
-@oLal ayroll CosL lncludes all cosLs lncurred Lo Lhe hoLel Lhrough Lhe employlng of sLaff
such as salarles wages beneflLs bonuses employer conLrlbuLlons Lo penslon plans
eLc
-or amounLs pald lrregularly Lhe calculaLlon should lnclude an apporLloned share of
Lhese due (for example where an annual bonus ls pald a payroll percenLage calculaLed
for any monLh of LhaL year should lnclude 1/12 of Lhe esLlmaLed amounL due)
-PoLel neL evenue ls calculaLed for Lhe whole hoLel as per Lhe neL revenue calculaLlons
referred Lo above
-@he calculaLlon may also be performed on a deparLmenLal basls @he resulL mulLlplled
by 100 wlll reflecL a payroll percenLage of sales
ross Cperat|ng rof|t ercentage
ueflned as
ross Cperat|ng rof|t
Net note| kevenue
for any perlod where
-8oLh ross CperaLlng roflL and neL PoLel evenue are ln accordance wlLh
Lhe deflnlLlons as glven above
-@he resulL mulLlplled by 100 wlll reflecL a gross operaLlng proflL percenLage