Discuss how the outcomes of food and beverage sales and costs of sales

indicated in the May comparative analysis report impact the bistro area and
the business overall. Consider the types of deviation (positive or negative) and
size of the deviations in food, beverage and total sales and cost of sales
categories.

the deviation in the food and beverage sales for the bistro department is
negative because the sales for the month were not able to reach the budgeted
target.
the total sales for both are $203,173 while the budgeted were $203,850 and
that is not good for the company given the significant variances in the cost of
sales.

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the budgeted cost of sales was $68,969 compared with the actual costs of

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$75,265 with 9.1% variation in the costs of sales and 1.8% variation in the

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total revenue generated both in the unfavourable direction for the company

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Question 2
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Complete
Mark 1.00 out of 1.00
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Question text
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What are two possible explanations for the deviations in food costs and
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beverage costs? Consider information provided in the May purchasing budget

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as well as the comparative report and case study information.

the two possible explanation

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1. price for a variety of food has been increased due to the increased drought
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along with the beverages due to government taxes so overall this led to
increasing the food and beverages costs
2.observing the purchasing budget for may is like an evidence that a higher
amount is spent on fruits, vegetables, meat and poultry than the budget. not
aligning the purchases with the budget and then an increase in the overall
prices due to drought resulted in higher costs for food as well as the
beverages highlighting the wine, beer, ciders-packaged and beer-keg which
the actual amount is more than the budgeted

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 Comments

Comment:

Question 3
Complete
Mark 1.00 out of 1.00

Question text

When preparing the budgets, the hotel forecasted food costs as 37% of food
sales and beverage costs as 30% of beverage sales.
Is the bistro meeting organisational goals for cost of sales? What is the

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difference between the budget target and actual results?

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 Food purchases: considering the food cost it is
40.7% of the food sales for May compared to the

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rs e budgeted one 37%, therefore, for the food category
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the bistro department is not meeting the targets
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 Beverage purchases: the cost of beverages is

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32.5% compared to the budgeted one which is 30%

so the targets are not achieved
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business set a budget target for a specific area within the business and actual
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result is the actual revenue and by comparing the two figures the business will
calculate the variance as favourable or unfavourable
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Comments
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Comment:

Question 4
Complete
Mark 1.00 out of 1.00

Question text

Should these deviations be reported to management? Explain why/why not.

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 yes,
these deviations should be reported to the management so that they can
make an improvement for the next month by ensuring that the team has
enough resources and knowledge to achieve their targets
Comments

Comment:

Question 5
Complete
Mark 1.00 out of 1.00

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Question text

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Based on the May purchasing budget, in what categories are the largest food
and beverage cost deviations occurring?

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food
1. fruits and vegetables
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2. meet and poultry

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beverages
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1. wine
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2. beer, ciders- packaged

3. beer-keg
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