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Cost Centers

How do you think this business could be divided into cost centres? Why might the organisation choose to make these divisions? 2.How will budgets contribute to operational efficiency and what types of budget might be appropriate for such an organisation? Why? 3.For each of the areas in the hotel, what direct and indirect costs would be applied and why must they be considered when drawing up budgets and developing financial reports? 4.What financial reports might be of benefit to this establishment? Why? 5.What types of waste might it be necessary to carefully monitor and control and why would this be necessary? 6.Who should be responsible for collecting, inputting and recording the data that contributes to budgets and who should be responsible for monitoring budgets – to determine how well performance is meeting expectations? Why? 7.What types of budget deviation might occur and what should be done if deviations are identified? Answers should be well supported with evidence and appropriate examples.

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