Date of Award
4-30-1999
Degree Type
UG Dissertation
Department
Accountancy
First Advisor
Dr. Michael J.Gift
Abstract
Nowadays, many organizations arouse the importance of budgets in their operation. For the hoteliers, the budgetary system is a powerful planning, controlling and motivating tool for them to predict the future sales volume and expenses. However, the unexpected tourism downturn in the second half of 1997 ruined their planning since no one could predict this event one year beforehand.
This project attempted to examine the hotel industry about which budgetary approach to be more popular in the hotel indus try, the relationship between the participative approach and the budgetary slack, the basis for evaluating employees’ performance, and the reliability and importance of budgets during uncertainty.
The findings showed that the hoteliers tend to use participative approach. However, there is no evidence to support the positive relationship between participation and budgetary slack. In addition, budgetary information forms a major part in evaluating employees’ performance. Moreover, the reliability and importance of budgets are not directly affected by the time period but are affected by how the hoteliers see the functions of budget.
In conclusion, some recommendations such as, using the participative budgeting approach, setting up a bonus-based technique, developing an accounting information system, using the budgetary information on evaluation, and setting a realistic and challenging budget targets are made for improvement to the budgetary system.
Language
English
Copyright
The copyright of this dissertation is owned by its author. Any reproduction, adaptation, distribution or dissemination of this thesis without express authorization is strictly prohibited.
Recommended Citation
Lee, A., & Lin, S. K. K. (1999). A study of the importance of the budgeting and forecasting during recession in the hotel industry (UG dissertation, Lingnan University, Hong Kong). Retrieved from https://commons.ln.edu.hk/acct_fyp/7