Due to the growing importance of forecasting and cost control, research on the real cost of food consumption per tourist days, to workers and civil servants in job functions outside their locality, by concept of diet, which influences negative in the behavior of the cost, in a City Hotel **, It intends to follow as a guide for decision making in the installation with a view to improving its cost control system and its profitability.
Introduction
Hotel companies are characterized by the provision of a clearly differentiated set of services, mainly dedicated to accommodation and catering activities. In fact, these companies offer a wide variety of services that can be combined with each other, completely heterogeneous and mostly intangible. These main characteristics of hotels imply the need for an exhaustive calculation of the costs incurred for in-depth knowledge of their management in order to manage the decision-making process.
Accommodation and catering operations constitute one of the biggest problems that hotel management must face, since it can represent the success of the company, if it responds to demand with an adequate supply and if all the processes that they intervene in its management; or, on the contrary, they lead to failure, if it is not able to meet customer expectations or if its management is inefficient or not very competitive.
Precisely given the importance of accommodation and restaurant management in the image and income of hotels, special attention should be devoted to controlling costs in these areas, especially the service provided to workers and managers in functions of I work out of town for diet
The cost of merchandise of the products sold constitutes one of the main cost items, with a significant influence on operating costs and expenses in the hotel facility; However, the exact impact on the cost of goods, factors such as consumption and the performance of the service provided, has not yet been accurately mastered.
This problem is made more critical by the rise in food prices and the need to import many products in the country, which causes an increase in costs in hotels, and before them it is necessary to search for solutions, which leads to the optimization of resources.
Precisely, due to the above, it is vital in the hotel to achieve better management of accommodation and catering costs. Based on these aspects, the problem that gives rise to the present investigation arises.
Research problem:
At present, the real cost of food consumption and lodging per tourist days, to workers and civil servants in work functions outside their locality, due to diet, is unknown, negatively influencing the behavior of the cost, in a Hotel * * from city
Justification:
Our main motivation for the development of this work is to know the basis to effectively control and record the cost of production in the catering and accommodation service to leaders, officials and workers in general, in job functions outside their locality or province. By concept of DIET.
Objective.
Use cost as a management tool to detect reserves for reducing costs and expenses, that is, determine where they can be reduced, without affecting the quality of the product or service. As well as knowing the behavior of the expenses of the different productive areas, determining the deviations if any, their causes and proposing the measures for their elimination; deciding which productions to carry out, which ones to replace or which to innovate, that produce the minimum of expenses. And get better results
Topic. 1: Theoretical Framework.
One of the most important issues related to the cost of production or service is the cost analysis with its different techniques, which are used depending on the existing dilemma. The forms and methods of using cost as a management tool are very varied and they are used depending on the circumstances and the alternatives proposed.
The entity under analysis is a hotel establishment of a heterogeneous nature, characterized by the provision of services in several clearly differentiated activities, mainly dedicated to the activity of accommodation and catering, which participate individually in the profitability of the entity.
The hotel developed its functions on the basis of Resolutions, Instructions and regulations of the Ministry of Tourism and others. Due to our research, it is necessary to know the regulations for the use of the hotel capacities administered by the ISLAZUL Tourism chain, for the concept of travel based on the work of the workers, officials and leaders of the Tourism system. Outside the town. And other state companies. Including this service as one more segment of national tourism.
Execution and signing of contracts.
Within the National Tourism Directorate, where contractual relationships are established between Islazul hotels, national receptors and the different entities; tourist entities, Cuban companies, joint ventures and foreign firms. Is defined as.
- Contract of tourist entities (Diet Mintur) Contract of state companies (Diet 35.50) Contract of joint ventures or foreign firms (All Currency) v Contract for events and work meetings (One-off)
Special features by type of contract
Contract. MINTUR diet. For the workers of the Ministry of Tourism, they will be governed by the disposition of the Ministry of Tourism itself. Resolution No. 6/2007. for accommodation and gastronomy.
The services and rates that will be governed for each concept of per diem based on work will be as follows.
| Services | CUP | CUC | Total |
| Breakfast | 0.50 | 1.50 | 2.00 |
| lunch | 0.50 | 3.00 | 3.50 |
| Food | 7.00 | 3.00 | 10.00 |
| Lodging | 10.00 | 5.00 | 15.00 |
| Total | 18.00 | 12.50 | 30.50 |
State Company Contract. Diet 35.50.The allowances for state-owned companies will maintain the limit of 35.50 pesos, for accommodation and gastronomy as established in Joint Resolution January 22, 1997, of the Ministry of Finance and Price - Ministry of Economy and Planning, adjusting to the established amount total accommodation and gastronomy services, per person. And Joint Resolution 1/98, of the same Ministries in terms of making the payment. Applying the 35.50 diet, national Mneda and a component in foreign currency, whose payment will be made in the national currency in cash and the currency by magnetic card. The gastronomic services that will be offered to the client, in breakfast, lunch and dinner. The hotel installation must make no less than three optional tables, including two liquids. (Mineral water, malt, juice, soft drink).Distributed in the following way.
| Services | CUP | CUC | Total |
| Breakfast | 1.00 | 1.50 | 2.50 |
| lunch | 2.50 | 4.00 | 6.50 |
| Food | 2.50 | 4.00 | 6.50 |
| Total | 6.00 | 9.50 | $ 15.50 |
The provision of gastronomic services. The ISLAZUL hotel facility will provide gastronomic services consisting of breakfast, lunch and food to the client. These benefits will be made à la carte.
The accommodation service is provided as detailed below, prices in National Currency (CUP), are paid in cash and a component in Convertible Currency (CUC) that will pay per night, types of rooms and per pax, pr magnetic cards.
| National Currency CUP | Convertible Currency CUC | ||||
| Simple room | Double room | Triple room. | Simple room | Double room | Room
triple |
| 9.00 | 26.00 | 43.00 | 11.00 | 14.00 | 17.00 |
Joint Venture Contract or Foreign Firm. All Currency Diet: At the request of international economic associations, foreign firms and others, and with the express authorization of the Minister of Tourism, accommodation in the ISLAZUL hotel chain is authorized for Cuban workers in international economic associations and foreign firms, in work functions, in this case it will be processed directly with this group and through a contract between the party, in all cases the payment will be entirely in foreign currency.
ISLAZUL, will provide gastronomic services, consisting of breakfast, lunch and dinner, these services will be a la carte, according to the prices set in CUC. The accommodation service will be agreed by the party taking into account the modality (plan) and the season, high or low. It is detailed below.
| Prices expressed in CUC per night per room | ||||||
|
Plan |
High season
Double Single Triple suite |
Low season
Double Single |
||||
| CP | $ 28.00 | $ 17.00 | $ 26.00 | $ 15.00 | ||
| EP | 18.00 | 13.00 | 20.00 | 23.00 | - | - |
Plan. CP: Accommodation with breakfast included. The price of breakfast is $ 2.50
Plan. EP: Accommodation. Without breakfast
For the EP plan. For gastronomic consumption. This diet is governed by the provisions of OM 4038, of the Ministry of Foreign Trade and Foreign Investment of September 2011.
Topic II: Improvement of the cost phases in planning, Calculation, and Analysis in the food service.
Production cost phases concept.
Different authors consulted have shown the importance and need of planning, recording, calculating and analyzing the cost of production for control and decision-making, but they do not address these stages in a logical or cyclical order, they refer to each of them independently, that is, they do not define them as cost phases. In our country this theory of costs is closely related to management functions such as: planning, organization, direction and control, allowing a greater interrelation between the different stages of the accounting and management process.
The satisfactory development of each phase and the interconnection between them constitute an essential element for the operation of the cost system implemented. The foregoing shows the special attention that the study and analysis of each one deserve.
2.1.1- Planning:
Cost planning must be carried out by analyzing the behavior of cost standards, the historical series of the same incurred in previous periods, the use of capacities, as well as the quantification of the reduction measures that can be applied backed by active participation of workers. From an economic point of view, cost planning must be preceded by a detailed technical analysis at the level of each organizational unit of the company, of the capacities used and the expenses incurred in the base period and the influence that the different factors may have exerted. technical-economic that affect them. The fundamental objective of production cost planning,It consists of the prior determination of the essential costs to obtain a given volume of production and delivery of each type and of all the company's production, with the established quality.
Planning methods.
- Normative method: This method presents two ways of calculation that complement each other:
- Expense budget Unit costs Analytical calculation method.
The unit under study works with the Normative Planning Method. What should be more analytical in its preparation. Since this consists of the application of norms and regulations based on the use of equipment, raw materials and materials, fuel, workforce, etc. This method makes it possible to make the cost plan compatible with the rest of the production technical plans and with the planned cost of each area.
Budget:
It is a state that shows an estimated information of the results of a program or plan of operations and represents a projection of future conditions or events expressed from a monetary point of view, it constitutes the objective forecast and the goals to be achieved by the bosses and workers of the labor collective.
The budget is a quantitative expression of general objectives and a means of monitoring progress towards achieving those objectives. The starting point of an objective is the formulation of long-term goals by management.
The process of setting long-term goals is commonly known as strategic planning. Management must decide where it would like the company to be in the future.
There are several types of budget: Master Budget, Zero-Based Budget, Program Planning and Budgeting System, Sales Budget, Production Budget, Direct Materials Purchase Budget, Direct Labor Budget, Production Overhead Budget, Budget of the items sold, Selling expenses budget, Administration budget.
The Company has established in its budget for the year, working with a merchandise cost index of 0.40 cents.
2.1.1- Consumption regulations:
This is based on a document that governs or establishes what corresponds to the consumption of materials, labor, electricity, fuels and other associated expenses in the manufacture of a product or the provision of a service. The control of consumption norms in the production or the provision of a service allows to know the behavior of the cost and to the top management to obtain the necessary information to make decisions.
The unit prepares consumption standards for the food service (breakfast, lunch and dinner), for workers, civil servants and leaders in work functions, for diet, who stay at the hotel. This consumption standard is called TABLES.
It is proposed that these entities that provide gastronomy services in restaurants and cafes will have no less than three optional tables, including two liquids of national production.
When making the tables, the cost of making the products that are going to be used in each one is taken into account. With the objective that there is cost-volume-profit correspondence. The analysis of the "cost - volume - profit" is the most important aspect of the analysis and control of the behavior of the production cost and it has a direct influence on managerial decision making.
Three tables are given as an example. (Breakfast, lunch or dinner), using different main dishes. And really know the unit cost of each one of them.
| Table # 1 - Breakfast
Cost price: _1.64__ Ø Juice or coffee with milk 0.20 Ø Ham / cheese sandwich 0.44 Ø Toast with butter 0.17 Ø Creole coffee. 0.07 Ø Malta 0.38 Ø Water 0.38 |
Fig. # 1
|
|
Fig. # 2 Fig. # 3
The management of an entity sometimes has to decide how to acquire and use financial resources taking into account the objective set. Decisions made about the production of an item or the offer of a service may not always produce desirable results, but a profit margin must be taken into account to reduce costs.
2.1.2 - Cost sheets.
For each product, whether main or auxiliary or productive service provided, a cost sheet is prepared, which will contain all expenses, such as materials, salaries, and other expenses, etc. You can know in advance the cost of production and the possible sales price. Manage information for the production area and the desired cost result is obtained. It varies according to the need or requirement of the administration.
The cost sheets are classified into:
- Taking into account the breadth of its content.
- Detailed cost sheets: They reflect the norms of consumption of material and labor resources as well as the norms of technical services expenses, organization and management of production. In these files, the standards must be contained in physical units; the unit of measure, the price or rate of each input and the unit cost of the product based on the unit of calculation adopted with a structure by cost item. Synthetic cost chips: They are more summarized models. This reflects the important unit costs of a semi-finished or finished product, structured by items. These are usually called cost sheets.
- Taking into account the objective pursued .
- Planned cost sheets: it represents the maximum magnitude of expenses expected in the production of a unit of product or service, it is made using norms and regulations that characterize the optimal possible production situation for the year in question.: They are calculated based on the standards in force on a certain date and characterized in the technical-organizational economic situation of production. It differs from planned ones in that they are more dynamic, that is, they change to the same extent as the rules. Projected cost sheets:They are destined to the economic foundation of the production or services of new companies that are constituted or the reconstruction of existing ones or new technological processes. Real cost sheet: These characterize the real cost of the production elaborated in the reporting period: when this cost sheet is made, it is necessary to take into account that the calculation objectives and the classification of the expenses will be the same as the that served as the basis for the planned cost sheets, making it possible to control non-compliance with the plan regarding cost reduction
The Company's operations department at the request of the business units and through a strict and meticulous analysis, prepares the cost sheets, due to the breadth of their content. Shown below.
| Company: Hotelera ISLAZUL
Santiago de Cuba COST SHEETS Facility: Hotel Rancho Club Dish Name: Pork Escalope Manufacture date: 08/23/2010 Serving rations: 170grs Number of Servings: 1 Starter____ Main course ___X___ Side dish _____ Dessert_____Other__ Selling price: 1.85 Estimated cost: 0.62 Cost index: 0.33 |
|||||||
|
Code |
Ingredient |
U / M |
Quantity |
Weight |
Price |
Amount |
|
| Stupid | Net | ||||||
| Escalope d / pork | OR | one | 0.115 | 0.090 | 0.4100 | 0.410 | |
| Egg | OR | 0.5 | 0.030 | 0.088 | 0.044 | ||
| Flour | Kg | 0.015 | 0.6644 | 0.010 | |||
| Oil | Kg | 0.020 | 1,7673 | 0.035 | |||
| All seasoning | kg | 0.002 | 4,552 | 0.009 | |||
| Salt | Kg | 0.003 | 0.3382 | 0.001 | |||
| Garrison | kg | 0.06 | 0.045 | 1,4001 | 0.084 | ||
| Subtotal | 0.5934 | ||||||
| 1% salary and seasoning
Indirect Expenses Total Proposed sale value |
0.0059 | ||||||
| 0.0178 | |||||||
| 0.617 | |||||||
| 1.85 | |||||||
| Preparation description:
The steak is seasoned and breaded, passing it through the flour, then through the beaten egg. I know |
heat the oil and fry.
It is served with the garnish.
Note:
The garnish can be some type of meat or vegetable.
Fig # 4
For the preparation of cost sheets, as explained above, the Direct Materials, Direct Labor and Indirect Production Costs are taken into account.
Direct Materials: All the materials involved in the manufacture of a finished product, which can be easily identified with the product, and represents the main cost of raw materials in the manufacture of the product.
Direct Labor: All labor related to the production of a finished article that can be easily identified with the product and that represents the main labor cost in the manufacture of the product.
Indirect Manufacturing Costs : Indirect costs are all manufacturing costs other than direct material and MOD that are associated with the manufacturing process. Other terms that describe this category of costs include, but are not limited to: other expenses, factory overhead, factory cargo, and manufacturing expenses.
CIFs can be subdivided according to the object of expenditure into three categories: indirect materials, MOI, and general manufacturing overhead.
2.1.3 - Application rate to determine indirect cost.
Once the production level and total manufacturing overhead have been estimated for the period, the default manufacturing overhead application rate for that period can be calculated. There are no fixed rules to determine which of the bases should be used as the denominator. However there must be a direct relationship between the bases and the indirect manufacturing costs. The formula to calculate the rate, which is the same regardless of the chosen base, is the following.
| Indirect manufacturing cost application rate per unit, hour, pesos, *, etc. |
Indirect manufacturing cost estimated X 100 =
Estimated estimation base
Bases expressed in pesos, the rate is expressed as a percentage multiplying the rate by 100
The most common bases for the application of indirect costs are.
- Production units% of direct materials cost% of direct labor costs Direct labor hours v Machine hours.
For the application of the predetermined rate of the CIF we illustrate the following budget.
HOTEL **
PRODUCTION BUDGET
Month of August 2012
Expressed CUC
Budgeted indirect cost $ 2240.00
Income to be produced during the month 41680.00
Estimated Direct Material Cost 11757.00
Estimated cost of direct labor
Estimated direct labor hours
To fix the allocation rate, we carry out a study of the indirect production costs of a month, in order to analyze its behavior, so that the selected rate is as close as possible to reality, for them we use the balance data General of the Hotel **.
Once the amount of indirect production costs in CUC and MN has been determined by the Hotel **, it will be used to set the applicable rate.We proceed to work with the Production Units method, which is based on the monthly budget of Indirect cost of production of the Hotel **, at its level of productive capacity, we show the following example.
CIF application rate = Indirect manufacturing cost estimated X 100
Direct material cost (to be used)
CIF application rate = Estimated indirect manufacturing cost X 100
No. Estimated man hours
The company has difficulty preparing the cost sheet, it is outdated, the index or coefficient for the application of indirect costs is only one for the entire company, and it has not been recalculated for several years; Consumption norms Labor and indirect costs need to be reviewed with a view to a regulation that adjusts to current conditions. For these factors are essential for the formation of price and the increase of utility.
On the other hand, let's look at the accommodation cost tab. Taken from the Hotel accommodation procedure manual, prepared by Lic. Maricela Legrá Wanton, and Lic. Elisa Calzadilla.
COST SHEET FOR A DOUBLE ROOM.
(Application of the Expense Method)
| CUC | MN | Total | |
| DIRECT COSTS | $ 10.9245 | $ 2.9721 | $ 13,8966 |
| - Supplies | 0.4375 | 0.4375 | |
| - Wear of tools | 0.2701 | 0.0006 | 0.2707 |
| - Lingerie wear | 0.4716 | 0.4716 | |
| - Laundry washing | 1.0065 | 1.0065 | |
| - Direct Labor | 2.2841 | 2.2841 | |
| - Other Direct Expenses | 8.7388 | 0.6874 | 9.4262 |
| INDIRECT EXPENSES | $ 0.8912 | $ 3,5922 | $ 4.4834 |
| - Maintenance expenses | 0.3144 | 1.0581 | 1.3725 |
| - Administration expenses | 0.5768 | 2.5341 | 3.1109 |
| TOTAL | $ 11,8157 | $ 6.5643 | $ 18,3800 |
Figure # 5
Accommodation as the basis of the global hotel product:
As the basis of the global product, accommodation is the most prominent element within the hotel business. Income from renting rooms is in general the highest or at least the ones that leave the highest profit margin. Thus, the management department prepares the most important product that the hotel sells through the Reception department: "customer rooms". It can be said that it is perhaps the most productive activity for the establishment, if it is to achieve daily high occupancy rates that allow obtaining greater and better results.
2.1.4 - Cost and expenses budget by areas of responsibility
This budget makes it possible to summarize and reflect in monetary terms the resources to be used, preferably on the basis of the rules and regulations, or if they do not exist, on indices established from the historical behavior and the inclusion of the measures to reduce expenses.
The unit under study makes its cost and expense budget based on historical figures. Taking into account the potential of markets.
In the planning of both activity or product, (Food and Accommodation), the use of the budget allows you to control and rationally analyze the use of material, labor, and financial resources existing in the entity, since it constitutes the control of expenses in the productive process. However, there is difficulty in obtaining the proposed figure for the cost of the merchandise, and it is due to irregularities that were not taken into account in the preparation of the budget.
Master Budget.
CUC MN
| Sales | 41680.00 | 5450.00 |
| accommodation | 11 810.00 | 2425.00 |
| Gastronomy | 29870.00 | 3025.00 |
| Total Costs and Expenses | 24 343.00 | 24066.20 |
| Costs | 11 757.00 | 1270.00 |
| Gastronomy | 11 757.00 | 1270.00 |
| Expenses | 12 586.00 | 22796.20 |
| materials | 2240.00 | 400.00 |
| Fuels | 2237.00 | |
| Energy | 4662.00 | |
| Workforce | 400.00 | 11562.00 |
| Tax | 170.00 | 4534.20 |
| Depreciation | 2200.00 | |
| Other expenses | 2877.00 | 4100.00 |
| Outcome | 17 517.00 | 18616.00 |
| Merchandise Cost | 0.40 | 0.42 |
| Total cost | 0.58 | 4.41 |
A series of procedures or steps must be taken into account that must be evaluated for their implementation:
- It is necessary a deep and exhaustive work aimed at obtaining data related to the main activity of the Carry out the necessary coordination at the level of Companies and the Hotel to determine the different aspects to include in the budget. In this sense
The Company's operations department must review the food cost sheets, the% of the indirect cost rate is not significant to determine the real cost of preparing a dish or service performed. and rigorous methods of calculating and estimating expenses are applied.
- It is important to introduce methods that facilitate a more efficient planning process and at the same time In this case there is no correlation between the budget for accommodation income and the budget for tourist days. When making the budget, the market to operate was not taken into account for cost reduction and income earning. Preferably with the Signature Diet. (Workers and officials in function of work outside their locality). This tourist segment was not considered as such, but as national tourism.
Regardless of the payment system.
2.2 - Calculation:
The cost calculation allows the analysis of the expenses incurred in the production of a product or several, as well as their components, the production in process and even the defective production; guarantees the analysis of production efficiency, facilitating the adoption of timely measures to correct deviations from the planned cost and increase the efficiency of companies; constitutes the correct foundation of the plan indicators and facilitates the analysis in the formation of prices. This is carried out using the groups of expenses considered within the established items required by the companyThey constitute an essential element for the operation of the cost system implemented. The foregoing shows the special attention that the study and analysis of each one deserve.
2.2.1 - Cost calculation by area of responsibility.
One of the most important premise is to achieve adequate planning and control of groceries and beverages, any deviation from the established indicators can have a negative impact on economic results. A cost of merchandise of $ 0.40 is budgeted, per area of responsibility.
2.2.1.1 - Food.
Breakfast. The cost of the service is $ 1.64, in the MINTUR Diet the client pays $
1.50 CUC and $ 0.50 MN, in both currencies $ 2.00, when providing this service the cost of the merchandise behaves $ 1.09, CUC and in both currencies $ 0.82. La Cena. The cost of the service is $ 2.43, the client pays $ 3.00 CUC and $ 7.00 MN, in both currencies $ 10.00, the cost of the merchandise in this service is $ 0.81 CUC and $ 0.24.
See fig. 1 and 2.
Breakfast in Diet 35.50, State Companies. Pay for the service $ 1.50 CUC and 1.00 MN, total currency $ 2.50, the cost of preparing the service is $ 1.64, the cost of merchandise obtained is $ 1.09 CUC and $ 0.65 in total currency. The dinner cost of the service is $ 2.43, the client pays for this concept $ 4.00 CUC and $ 2.50
- Total currency $ 6.50, the cost of production in this segment is $ 0.60 CUC and $ 0.37 in total currency. See fig. 1 and 2.
Breakfast in All Currency Diet. The client pays $ 2.50 CUC, the cost of the service is 2.05, the cost of the merchandise is $ 0.82.
2.2.1.2- Accommodation:
Let's see Figure # 5 of this work. It shows that the cost of a double room in
CUC, daily is $ 11.81 and MN $ 6.56 for a total cost in both currencies of $ 18.38, however.
MINTUR diet. Pay $ 5.00 CUC and $ 10.00 MN for accommodation, a total of $ 15.00 in both currencies. The room is double, it would be $ 10.00 CUC and $ 20.00 MN, even so it does not compensate the cost of putting a room ready with the payment received from the client in CUC, in relation to the MN. The hotel obtains a positive margin of $ 13.44 for this modality, which we cannot call profit, since all materials, supplies and tools for the start-up of the room are acquired in CUC.
State Companies Diet 35.50: Accommodation is not per pax, like the previous Diet, but per room and they pay $ 14.00 CUC and $ 26.00 MN, the room price is $ 11.81, the profit margin in CUC would be $ 2.19 and at MN $ 19.44, but as explained in the previous presentation, a margin of $ 2.19 is not significant for this activity. Like the MN.
Diet Joint company or foreign firms. All Currency: The accommodation service will be according to the accommodation request. This type of diet has two types of plan. EP, is only accommodation and CP, accommodation with breakfast included, for this plan the charge of the room is taken into account the season, high or low.
A client. Stayed in a double room, in CP plan, in high season you pay $ 28.00 CUC and in low season $ 26.00, both with breakfast included for a value of $.2.50, which must be deducted from the main one, The cost of a double room It is $ 11.81 CUC and $ 6.56 MN, for a total of $ 18.37, the difference in any of the seasons is acceptable. Seria ($ 7.13 and $ 5.13) respectively
A client. Stayed in a double room, in EP plan, you pay $ 18.00 and the cost of the room is $ 18.37, there is a loss when providing this service.
Clearly in this segment Diet Firma, none of the diet modalities gives satisfactory results to the hotel, in any of the services provided, except Todo Divisa, if it operates with a CP plan. At our discretion, looking for a solution to the problem under investigation. Management must use other methods for the rates agreed for this service without violating Resolution No. 1/98 by the Ministry of Finance and prices.
To determine the cost of food consumption per tourist days, table # 1 and table # 3 were taken, accommodation by table fig. #5. The food cost is only in CUC and the income in both currencies, In accommodation the cost is both currencies and the income except the All Currency diet is in both currencies. Calculation of the Cost and income per tourist days in a single room
|
Service |
MINTUR | Companies 35.50 | All Currency | ||||||
| CUC | M.
Total |
CUC | M.
Total |
CUC | M.
total |
||||
| cost | Ingr | cost | Enter | Cost | Ingr | ||||
| Breakfast | 1.64 | 1.50 | 2.00 | 1.64 | 1.50 | 2.50 | 1.64 | 2.50 | 2.50 |
| Dinner | 2.43 | 3.00 | 10.00 | 2.43 | 4.00 | 6.50 | 2.43 | 6.50 | 6.50 |
| accommodation | 5.90 | 5.00 | 15.00 | 5.91 | 11.00 | 20.00 | 5.91 | 17.00 | 17.00 |
| Total | 9.97 | 9.50 | 27.00 | 9.98 | 16.50 | 29.50 | 9.98 | 26.00 | 26.00 |
| cost | 1.05 | 0.49 | 0.60 | 0.45 | 0.38 | 0.51 |
Fig. # 6
See fig. # 6, the cost for food service in the MIMTUR Diet, corresponds to 0.90 cents per day tourist in CUC and in total currency to 0.34 cent, the cost for accommodation is $ 1.18 in CUC and in total currency of 0.61 cent
Calculation of the cost and income per tourist for days in a double room.
Fig. # 7
With the calculation of the cost and income per tourist days, it is shown that only in the All Currency modality , it is profitable for the hotel when it is used in a single room, not in a double room, analyzing from the point of view by activity, it is very good accommodation leaving room to cover food that behaves at a cost of 0.45 cents being planned at 0.40 cents., MINTUR diet, the cost of a daily tourist in CUC $ 1.05 and in total currency $ 0.37, in the two options, Likewise, the Company Diet behaves with a cost per daily tourist in CUC of $ 0.60 and in total currency $ 0.34, when single and double rooms are used in CUC at 0.80 cents and in total currency at 0.43 cents.
Some managers suggest that this segment in total currency gives satisfactory results, and it is not, the total currency does not solve the economic situation or the deterioration of the cost of merchandise that the hotel presents at this time. All purchases and operations carried out to implement the daily food and accommodation service are acquired in CUC. In the few services it receives, it presents a component in MN.
Analysis:
The analysis stage is fundamentally based on evaluating the behavior of expenses and their deviations; taking into account the place where they are produced and the concept of each expense, so that the causes that motivate them allow their knowledge and the taking of measures that eradicate or reduce those that cause negative effects on the results.
The analysis should focus mainly on the area of responsibility and basically on those that decide the production process.
The analysis by areas of responsibility must determine the causes of the deviations between the spending budget and its actual execution in the corresponding period, for their possible elimination.
2.3.1- Compare by areas budget and real income and expenses CUC
| Area of
Responsible- |
Budgets
- Income |
Real
Income |
Budgets
Expenses |
Real
Expenses |
Variation | |
| Income | Expenses | |||||
| Gastronomy | 28 917.00 | 20 473.21 | 17013.37 | 14,007.54 | (8,443.79) | 3005.83 |
| accommodation | 11 810.00 | 11 036.25 | 5417.86 | 5,069.86 | (773.75) | 348.00 |
| Total | 40 727.00 | 31 509.46 | 22,431.23 | 19077.40 | (9217.54) | 3,353.83 |
Income and expenses vary with respect to the plan in a significant amount mainly in gastronomy, this once again bases the aforementioned to the fact that there is no correct planning of the income that by not making the calculations of the income and expenses per day tourists. Taking into account the characteristic of the hotel.
2.3.2- Determine equilibrium point.
Break-even analysis is a useful tool for studying the relationship between fixed costs, variable costs, and sales. The Profitability Threshold defines when total income and total costs are equal and there is no profit or loss at that point. It can be viewed graphically or with simple math. Break-even analysis can be identified with different approaches, showing when sales, prices and profits are sufficient and when they are insufficient according to the entity's objectives.). The breakeven point is defined as the point where a company generates neither profit nor loss; this is a level where the Marginal Contribution is of such magnitude that it covers the fixed costs
Due to the characteristic that the hotel has, and the services it provides, it is important to apply as a formula, the equilibrium point in (sales pesos), since through it we obtain the equilibrium point globally, by activity We would carry out per unit of product, since the interest is to know this amount in the two main activities of the Hotel that need to be sold to at least obtain balance in the modality of the “firm diet” segment. The formula is the following.
Balance point = Fixed Cost
1- Variable costs
Sales
Pvu x = Cvu x + Cf + U
MC = Pv –Cvu
PE = (Cf + Ud) / (Pv - Cvu) Where.
- Break-even point Sales Price Variable Costs Fixed Costs Profit Contribution margin
In this case, it is necessary to group fixed and variable costs, taking into account their relationship with the production volume. Variable costs were considered: raw materials, electricity, fuel from the production process, and other expenses associated with the production process.
Fixed costs were considered: Salary, depreciation, lease and other monetary expenses since they are assumed to remain unchanged, even if there are sudden changes in the level of activity.
Global fixed and variable real costs:
| Games | Costs
Fixed |
Costs
Variables |
Total
Costs |
| materials | 11 631.07 | 1,734.41 | |
| Fuels | 1 142, 93 | 1 142.93 | |
| Energy | 5 347.62 | 5 347.62 | |
| Workforce | 16 724.75 | 16 724.75 | |
| Depreciation | 1605.91 | 1 605.91 | |
| Lease | 3 171.48 | 3 171.48 | |
| Communication | 320.00 | 205.98 | 525.98 |
| Maintenance | 222.55 | 222.55 | |
| Other expenses | 271.59 | 2728.74 | 2,965.33 |
| Total costs | 22,093.73 | 21 278.89 | 43372.62 |
Analysis of the Global Balance Point or in Securities
Some authors call this point profitability threshold because from it companies enter a profit zone, while below it, they do not cover their costs.
Equation method.
Sales - Fixed Prices - Variable Costs)> 0 then = Profit
(43613.01 - 22093.73 -21278.89) = 240.39 Profit
PET. 22093.73 = 43 145.91
21278.89
43613.01
The hotel reached breakeven when it sold $ 43,145.91. The proportion of fixed costs in the total cost is low. However, in services, it is generally the case that the proportion of fixed costs rises, in most cases up to 50% of the total cost. Under these conditions, it is not possible to use the unit cost as a reference point for setting the rate, since the volume of units or service that will be provided is not known a priori.
The hotel in general in the month of analysis was balanced, where the surplus of each weight of sales once satisfied the variable cost proportion could cover the fixed costs and utility. Despite this result, the analysis by activity does not yield the same results. Let's see
Analysis of PE by Activity
PE (Restaurant)
(Sales - Fixed Prices - Variable Costs)> 0 then: Profit
(20473.21- 8744.99-12044.24) = (316.02) Lost
PE = 8744.99 = $ 21240.65 1- 12044.24
20473.21
The Restaurant activity has income of $ 20473.21 and to reach the breakeven point you must sell 21240.65, the activity obviously has a loss, in this case the proportion of fixed costs is high so the contribution margin does not cover variable costs. For this we must improve the variable costs, in this case the costs are greater than the income. It is clear why this result in the restaurant activity (gastronomy). We will analyze other mathematical formulas to know through this activity how many guests must pass through the Restaurant in order not to win or lose. In other words, seek the balance point.
It is verified in the sales volume that, after deducting the variable costs, there remains an insufficient surplus that does not cover the fixed costs. In this case sales <total cost, of course there is no profit but losses
Eg The hotel sold 436 physical tourists in the month, of them 61 foreign tourists and 375 national tourists. The 375 national tourists were as follows, Company Diet 37, MINTUR Diet 23, Todo divida 8 and National Omnibus 279, the rest Cubans free. On the other hand, the 436 physical tourists staying at the hotel correspond to 999 day tourists, of which 454 foreign tourists and 545 national tourists. Of the tourists national days. Company Diet 82 tourists days, MINTUR Diet 83 tourists days, All currency Diet 16 tourists days and National Bus Company 364 tourists days. The rest corresponds to free Cubans. The prices on the daily consumption in the hotel is as follows.
- Breakfast and dinner $ 9.00, accommodation. $ 20.00 Breakfast and dinner $ 12.00, accommodation $ 15.00 All currency. Accommodation $ 15.00 National Bus. Breakfast, lunch and dinner $ 8.70, accommodation $ 27.00.
Variable food costs are.
- $ 3.31MINTUR. $ 3.69 Bus $ 6.34
Fixed food costs are taken from the total fixed costs incurred in the month in said activity, $ 224.51.
Gastronomy Activity.
Equation method.
Modality: MINTUR diet
PVu x = CVu x + CF + U
12.00x = 3.69x +224.51
12.00x - 3.69x = 224.51
8.31x = 224.51
X = 224.51
8.31
X = 27 tourists
27 daily tourists must be sold in Diet MINTUR. If you sell 26 there is a loss and if you sell 28 there is a profit.
Contribution Margin Method. At the equilibrium point
MC = PV - Cvu
MCu = 12.00 - 3.69
MCu = 8.31
PE = (CF + UD) / (PV - Cvu)
PE = (224.51) / (12.00 - 3.69)
PE = 224.51 / 8.31
PE = 27
There would be 27 tourists to sell daily in the MINTUR Diet at equilibrium, which is equivalent to selling $ 324.00 (27 x 12.00).
Net Profit Method.
How many tourists must be sold to produce a net profit of 20% on sales?
Applying the equation would be.
Vx = CV x + CF + UD
12.00x = 3.69x + 224.51 + 0.20 (12.00x)
12.00x = 3.69x + 224.51+ 2.40x
12.00x - 3.60x - 2.40x = 224.51
5.91x = 224.51
X = 224.51 / 5.91
X = 38 Tourists
The hotel must sell 11 more tourists to obtain a 20% profit on sales
Checking.
Sales ___ 38 x 12.00 = 456.00 = 100%
Variable Costs 38 x 3.69 = 140.22 = 30.75%
Contribution Margin = 315.78 = 69.25%
Fixed Costs = 224.51 = 49.23% Net Profit = 91.27 = 20.00%
Modality: Company Diet:
PVu x = CVu x + CF + U
9.00 x = 3.31x + 224.51
9.00 x -3.31x = 224.51
5.69 x = 224.51
X = 224.51 / 5.69
X = 39.45 Daily tourists
In this case, you must sell 39 tourists a day so as not to win or lose, if 38 is sold, the hotel loses and if it sells 40, the hotel wins. $ 351.00 (39 x 9.00). related to fixed costs.
Modality: National Omnibus Diet:
PVu x = CVu x + CF + U
8.70 x = 6.34 x + 224.51
870 x - 634x = 224.51
2.36 x = 224.51
X = 224.51 / 2.36
X = 95 Daily tourists
Despite having a broad and encompassing corporate purpose in the development of its functions, the hotel is destined to the commercialization of the firm diet segment in different modalities. Therefore, it presents limitations for the profit diagram such as:
- The payment for the service provided does not correspond to the expenses The hotel, despite being destined for this segment, does not maintain a reserve of 75% of its operating capacity The restaurant activity (gastronomy) has fixed costs at a 42% of the total cost must dedicate more effort to improve the cost-price relationship, so that the breakeven point is reached with less effort and the profit margin is increased.
The main objective of companies with high fixed costs, such as Hotels, is to maximize profits. Hotels find that it is economically profitable to offer reduced rates in the less tourist season. (Low season), provided that the additional income derived, exceeds the costs incurred. In other words, this measure is only possible to the extent that there is a positive contribution margin. Where total revenue minus variable costs, cover total fixed costs.
Conclusions
One of the most important issues related to the cost of production or service is the cost analysis with its different techniques, which are used depending on the existing dilemma. The forms and methods of using cost as a management tool are very varied and they are used depending on the circumstances and the alternatives proposed.
The evaluation of the service provided in Restaurant and Lodging to the Signature Diet segment. It comes to the conclusion of.
- The payment for the service provided does not correspond to the expenses The hotel, despite being destined for this segment, does not guarantee a reservation of 75% of its operating capacity The restaurant activity (gastronomy) has fixed costs at 42% of the total cost should dedicate more effort to improve the cost-price relationship, so that the breakeven point is reached with less effort and the profit margin is increased.
- Carry out the necessary coordination at the Business and Hotel level to determine the different aspects to include in the budget. In this sense, the Operations department of the Company must review the food cost sheets, the% of the indirect cost rate is not significant to determine the real cost of preparing a dish or service and rigorous calculation methods are applied and Expense estimation. It is important to introduce methods that facilitate a more efficient planning process and at the same time. In this case there is no correlation between the budget for accommodation income, with the budget for tourist days.When preparing the budget, the market to operate was not taken into account to reduce the cost and obtain income The National Tourism Directorate must make cost sheets when making the contracting with the Companies for the Diet Firm segment, assess whether it is possible in the current moments that we live if it is convenient or not to provide this service.
recommendations
- Establish a commercial policy in conjunction with your ministry, which takes into account favorably the prices of services offered to clients, the costs of acquisition of inputs and operational expenses, which allows it to obtain returns Take into account the results of the investigation that allows you to be efficient in managing your working capital and facilitate short-term decision-making.
Bibliography
- Polimeni R. Concept Accounting applications for managerial decision making. Volume I. Second edition. Resolution 1/98. Ministry of Economy and Planning and Ministry of Finance and Price. Resolution # 12/99, the Minister of Tourism Resolution # 46/2005, of the Ministry of Tourism Resolution No. 6 of 01/18/2007, of the Minister of Tourism, in Article # 11, subsection c. Cost sheet.. Prepared by the operations specialist, ISLAZUL Company Maricela Legrá Wanton and Lic. Elisa Calzadilla. Procedure manual for the preparation of cost sheet for accommodation. Procedure manual Operating Operations Manual. 2012. Conventional hotels
Msc: Sandra Guerra Abdul Chani EHTT and Lic. Eduardo Mallorquín EHTH Basic manual for hotel reception.
Resolution # 12/99, the Minister of Tourism
Resolution # 46/2005, of the Ministry of Tourism
Polimeni R. Cost Accounting. Concept applications for managerial decision making. Volume I. Second edition
Resolution No. 6 of 01/18/2007, of the Minister of Tourism, in Article # 11, subsection c, Cost sheet. Food. Prepared by the operations specialist, ISLAZUL Company
Accommodation cost sheet. Hotel procedure manual, authors. Maricela Legrá Wanton and Elisa Calzadilla.
Basic manual for hotel reception. Authors: Msc: Sandra Guerra Abdul Chani EHTT
Lic: Eduardo Mallorquín EHTH
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