GOODS AND SERVICES TAX GST The goods and services tax GST is a value added tax

Goods and services tax gst the goods and services tax

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GOODS AND SERVICES TAX (GST)-
The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.REVENUE-Revenueis the income that abusinesshas from its normal business activities, usually from the sale ofgoods and servicesto customers. Revenue is also referred to assalesorturnover. Some companies receive revenue from interest, royalties, orother fees.OCCUPANCY RATE-Occupancy rate is the ratio of rented rooms versus the total number of rooms in thehotel.Occupancy Rate = Units Rented Out / Total UnitsCASH FLOW-Cash flow is the net amount of cash and cash-equivalents being transferred into andout of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow.FOOD COST % -If one own or manage a restaurant, he know thatfood costmatters. It's generally the largest or second largest expense, making up over a third of budget. Therefore, knowing how much one spend on food compared to how much he spends on everything else is a useful measure of whether he is running an efficient operation.To calculate food cost percentage a basic formula is used =(Food cost/food sales) x 100Activity 6Take a look at the budget and the actual figures on the following budgetcompleted for the year 2012/13.1. Calculate the variances in percentage terms and state if they arefavourable or unfavourable. (to two decimal places)
2. Take a close look at the wages and show calculations to show if theactual figures are favourable to the budget estimates or unfavourable tobudget estimates when compared to sales.3. Take a close look at the food cost and show calculations to show if theactual figures are favourable to the budget estimates or unfavourable tobudget estimates when compared to sales.4. Take a close look at the beverage cost and show calculations to show ifthe actual figures are favourable to the budget estimates orunfavourable to budget estimates when compared to sales.Le Tatin Café Budget 2012/13 Income Budget Actual Variance % U – Unfavourable F – Favourable Breakfast – food $364 000 $395 522 8.66% F Breakfast - Bev $26 500 $31 200 17.73% F Lunch – Food $525 000 $425 336 18.98% U Lunch – Bev $157 500 $110 988 29.53% U Dinner - Food $730 000 $745 369 2.10 % F Dinner – Bev $219 000 $225 120 2.79% F Functions - Food $456 000 $788 300 72.87% F Functions – Bev $136 800 $220 367 61.08% F Total $2 614 800 $2 942 172 12.51% F Expenses Purchases Food $664 000 $753 448 13.47% U Purchases Bev $162 000 $199 810 23.39% U Wages $993 600 $1 059 181 6.60% U Superannuation $91 910 $97 974 6.59% U Rent $80 000 $80 000 Same Marketing $25 000 $22 300 10.8% F
Waste disposal $3 200 $3 500 9.37% U Office supplies $4 500 $6 100 35.55% U WorkCover $18 000 $19 000 5.55 % U

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