Budgeting and Budget Control

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CHAPTER ONE INTRODUCTION The Hotel industry is among the lucrative businesses in the world. It is an international business which the following factors determine its size and international nature. They Hotel business provides ready source of hospitality. Due to hotel business many travelers are satisfied. With the help of hotel firms many companies have achieved their goals. The hotel industry is engaged with wide range of activities that are diverse and technically distinct but all collaborating in getting services from the staff to the satisfaction of customers. Basically, the hotel industry can be classified broadly in three sectors; Production Marketing Servicing Due to the nature of the hotel industry, a company can undertake the three aspects of the activities or different companies may specialize in the various arms of the industry. Not examining all aspects of the hotel industry the researcher has decided to examine the industry’s budgeting and budgetary control with specific reference to Tuscany Hotel Ltd. Having gone though, the nature and controlling of hotel industry, it will be necessary at this point to give a general idea of budget. Briefly, defined, a budget could be seen as a control tool. Idornigie G.A. quoted certified institute of management Accountants. (2003:57) a budget is a plan quantified in monetary terms, prepared and approved to a defined period of time, usually showing planning income to be generated and/or expenditure to be incurred during that period and capital to be employed to attain a given objective. It represents a plan for the future expressed in quantitative terms, both individuals and businesses draw up budget showing expected value and proposed expenditure for a given period of time. No business remains static, Consequently, efforts to determine the course of future events accurately need to be made.

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