Advanced Accounting for Decision Making
Using the case study data and reflecting on the current financial environment, evaluate the hotel’s financial position using
1. Cost Volume-Profit Analysis: identify cost object and trend for the hotel based on 3 years of data. Perform CVP analysis to claculate the break-even sales volume for 2018. Dicuss pros and cons.
2. Full Costing: how will the breakeven change if the hotel adopts full costing vs variable costing? Which approach would you recommend and why?
3. Costing in a Modern Environment: discuss how the following dimensions of costing can aid the hotel
· Activity Based Costing
· Value Chain analysis
· Balance Scorecard
· Economic Value Added (EVA)
Your report should incorporate personal critical thinking (analyzing and using triangulation approach).
Respective paradigms should be based on careful consideration of verifiable (empirical) or descriptive facts pertaining to current happenings in the financial corporate world not just what is mentioned in the case study.
The report should not only display qualitative methodologies with descriptive characteristics but should also demonstrate critical thinking and originality in examining “the thinking behind the thinking” by raising important questions beyond relying on the content of the case study.