Costs Management Team Decisions

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Structure of the costs groups

In the demo file at the tab results there are three major groups of costs. On mouse-over the firsts cells with the small black triangle, you will get additional information on the numbers.

Example of overview all costs after four years.

As you can see in this example above which shows the operating review of a demo team after four years:

• the fixed costs have stayed the same during all four years, the fixed depreciation costs are one of them.
• the variable costs depend on the occupancy rate like laundry: the more rooms occupied the more laundry.
• the costs team decisions, will depend the decisions made by the new management team.

Overview of total of the costs of Management Team Decisions

Let's check the costs related to the decisions you took for the hotel. At the moment you take over they are none: in the picture the grey area. IN the table underneath the green numbers.

Costs
Costs: fixed	Depreciation costs of existing assets	€ 525,187	34.64%
	Fixed staff costs	€ 550,271	36.29%
	Costs of premises	€ 390,473	25.75%
	Insurance & interest costs	€ 50,012	03.29%
Total fixed costs		€ 1,515,943	100%	62.36%
Costs: variable	Variable staff costs	€ 355,170	38.95%
	Laundry costs	€ 118,390	12.94%
	Cleaning costs	€ 236,780	25.88%
	F&B purchase costs	€ 204,312	22.33%
Total variable costs		€ 914,652	100%	37.63%
Costs: team decisions	Marketing costs	€ 0	00.00%
	Extra staff development costs	€ 0	00.00%
	Extra depreciations costs	€ 0	00.00%
	Market research costs	€ 0	00.00%
	Other costs	€ 0	00.00%
Total team decisions costs		€ 0	100%	00.00%
Total all costs		€ 2,430,595	€ 2,430,595	100%

As you take over the hotel, there are no expenditures on this costgroup. So all expenditures in this part will come extra next to the existing ones. So these are the only costs you can influence directly. And they only will be effective just for one year. You decide on them in your decisions, done in your Team file.

• More on this in Operating review.

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Emerald Forest Hotel offering an emerald hotel experience! | Run your own hotel in this management simulation.