that are employed by that department. For example, a food and beverage department manager may ask for the payroll cost report to be separated by kitchen staff, floor staff and supervisors. Month to date calculations Regular and overtime worked and the total payroll cost for the month to date are also included in the daily payroll cost report. This enables managers to review their payroll costs to date for accuracy, completeness and against expected costs. Budget payroll The budgeted payroll cost for the is reported in the daily payroll cost report so managers can compare the actual cost to the cost that was planned or expected. At the time the budget was prepared, managers would have made certain assumptions to determine their staffing needs and therefore payroll cost. When managers can compare the actual costs to the budget, the accuracy and validity of their assumptions is confirmed. Also, if the actual results vary from the budget, managers can investigate reasons. This will improve control of costs for future reporting periods. Ratios for analysis The final calculations included in the report are relevant ratios that management use to monitor and control payroll costs. This is most commonly the payroll cost expressed as a percentage of sales. We have referred to this as the labour cost percentage earlier in this manual. A pre-determined labour cost standard, the current daily calculation and the month to date percentage are usually contained in the report. There may also be a percentage for the labour cost for the same time last month or year. Often, this is the first part of the report the department manager will look at as a labour cost percentage that varies significantly from what was expected would always be investigated. Other key expense reports
that are employed by that department. For example, a food and beverage department manager may ask for the payroll cost report to be separated by kitchen staff, floor staff and supervisors. Month to date calculations Regular and overtime worked and the total payroll cost for the month to date are also included in the daily payroll cost report. This enables managers to review their payroll costs to date for accuracy, completeness and against expected costs. Budget payroll The budgeted payroll cost for the is reported in the daily payroll cost report so managers can compare the actual cost to the cost that was planned or expected. At the time the budget was prepared, managers would have made certain assumptions to determine their staffing needs and therefore payroll cost. When managers can compare the actual costs to the budget, the accuracy and validity of their assumptions is confirmed. Also, if the actual results vary from the budget, managers can investigate reasons. This will improve control of costs for future reporting periods. Ratios for analysis The final calculations included in the report are relevant ratios that management use to monitor and control payroll costs. This is most commonly the payroll cost expressed as a percentage of sales. We have referred to this as the labour cost percentage earlier in this manual. A pre-determined labour cost standard, the current daily calculation and the month to date percentage are usually contained in the report. There may also be a percentage for the labour cost for the same time last month or year. Often, this is the first part of the report the department manager will look at as a labour cost percentage that varies significantly from what was expected would always be investigated. Other key expense reports
TM_Maintain_financial_standards_&_records_refined.docx