Vertical Analysis Assessment
Assignment Overview
The Jade Hotel is a medium sized hotel located in the Sydney CBD. It is part of the successful Jade Hotel Group that was established some ten years ago. The hotel group is Australian based, it does not have operations outside of Australia. The Jade Hotel, Sydney is the newest addition to the group and has been operating for just six months. Without any historical trading results to compare current performance to, it is appropriate to conduct a vertical analysis of the Profit & Loss Statement in order to evaluate performance and control day-to-day operations.
You are required to undertake a comparative vertical analysis of the operational results for the Food and Beverage Department. For this purpose, you are provided with the performance benchmarks used across the hotel group. Based on this analysis, identify areas of significant overspend and suggest possible causes.
Assignment Instructions
From the information provided for the Food and Beverage Department you are to:
1. Convert the Profit & Loss Statement to a comparative vertical analysis format.
2. Identify and explain areas of significant overspend in relation to expenses and suggest possible causes. Address the three most significant areas of overspend only.
3. Select one of the areas of significant overspend identified in part 2. What data/information/records/source documents (in addition to the Profit & Loss Statement and vertical analysis) could you review, to fully investigate the actual cause of the overspend?
Attachment:- Assignment File.rar