1/What sources of data ought Ms. Brown to consult in order to learn why allowances have increased?
1/What sources of data ought Ms. Brown to consult in order to learn why allowances have increased? What sources should she consult in order to learn the reason why the credit limit report has increased?
2/ Should Ms. Brown speak with departments other than accounting about these issues? Which ones, if any? What other aspects of the front office should Ms. Brown examine?
3/What components needs to be included in Ms. Brown’s action plan to guarantee that the problems have been effectively resolved before the business auditors show up?
Mini Case Study Chapter 8
Please read the mini case study for Chapter 8, it revolves around allowances, and credit limits. Once you have read the case study, answer the following questions to the best of your ability.
The Cowboy Hotel’s front desk manager, Ms. Brown, has been reviewing the last week’s daily income statistics. Although posted room revenues have increased, but so have allowances. The number of guests listed in the report who are above or close to their credit limits has also grown.
Since around three months ago, Ms. Brown has managed the hotel’s front desk. She was previously the front office manager at a resort in a different region of the state before being transferred to the hotel. The Cowboy Hotel generally caters to group business, whereas the resort had mostly social (or non-group) guests. Recently, the Cowboy Hotel lost several front desk staff members to a nearby new hotel that just opened. Ms. Brown was forced to appoint replacement workers.
Ms. Brown does not want the reports’ findings to turn into a habit. The Cowboy Hotel has never had a high allowance factor and rarely has direct billing or credit card collection been an issue. James Tildon, the hotel controller, has been requested to assist her. James informs Ms. Brown that the company’s auditors are coming within the next month for their yearly assessment when they meet to discuss the matter. The general manager of the hotel and the corporate office both receive a report from the auditors.
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