Given the Following Data on Hotel Check-Ins for a 6-Month

question 83

Essay

Given the following data on hotel check-ins for a 6-month period:

July:     70 rooms
August:     105 rooms
September:     90 rooms
October:     120 rooms
November:    110 rooms
December:     115 rooms


-With alpha = 0.2, what is the simple exponential smoothing forecast for October? Assume the forecast for July was 80 rooms.

Calculate variances from standard costs, including material, labour, and direct labour rate variances.

Identify responsibility centers and analyze their performance through variance analysis.

Understand the concepts of standard costing and its application in managerial decision-making.

Recognize the significance of management by exception in performance management.

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Definitions:

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments by calculating the discount rate that makes the net present value of cash flows zero.

Mutually Exclusive

Situations or events that cannot occur at the same time.

Investment Proposals

Detailed written offers to purchase new or existing securities, outlining the terms and conditions for investment.

Administrative Processing

Procedures and activities related to the management and execution of office tasks and functions.