Financial and Resource Management Essay Example | Topics and Well Written Essays - 3500 words

pecuniary and Resource Management - Essay ExampleTherefore the net cost of training amounts to $60 only. yet this is a good arrangement as it will save the time taken for the repair of the motorcar thereby keeping the revenues flowing.As per the Quantitative analysis tools like NPV, IRR etc the new investment proposal is viable. A forecast of the revenue for the four year period highlights that the new investment will generate corroborative net cash flows.The Leisure and Health Club, the gym facility at Bombay Excelsior is planning to restitute itself to keep in line with Excelsior International standards. For this the club plans to purchase new equipments, as the equipments shortly in use do not meet quality requirements. For the purchase of equipments the hotel has a number of options- it idler either buy the equipments outright or it can take a lease.The budgets are designed to film the organization towards the achievement of the business objectives. There can be three type s of budgeting approaches like Incremental Budgeting, Zero-based budgeting and motley Approach. The Incremental budgeting is based on the estimates of the last year, Zero-based budgeting is done afresh and Mixed Approach, as the name implies, comprises the elements of twain the incremental and zero-based budgeting. The budgeted estimates are then compared with the actual results to identify any deviations. In the event of unfavourable or adverse variance corrective action is initiated.In the financial year 2009 Bombay Excelsior estimated a append Income of $7421200. But the actual income during the period was $6817500. This shows that there is an Unfavourable variance in the estimated Total Income of $603900. The highest deviation in this regard has been in the case of Room Revenue and Food Revenue whereas actual Beverage and different Revenue match their budgeted projections. In December 2009 the Planned Total Income was