ABSTRACT
Commercial Director Gerald Glass and Managing Director Freddy Fortune have some problems about the costs of a new staircase for their building. It was built at the end of the nineteenth century and they intend to retain the classic style. They started the project a couple of months ago with the stair manufacturing factory Classic Stairs Ltd. The budget for the renewal of the old staircase threatens to be exceeded. If Gerald compares the financial review of this renovation with the amount originally agreed upon in the year’s financial planning, it appears that the costs for the stairs are becoming too high. Freddy Fortune’s opinion however is that the good ambience of a hotel is one of its most important features and that even though costs are higher than calculated in advance the improvements should go on. ‘Costs precede benefits’ is his motto. Freddy thinks that Gerald can be a bit narrow-minded sometimes. He is always precise about ensuring that not one penny extra is paid, as if he was paying out of his own pocket. Gerald on the other hand thinks that Freddy has too little regard for the economic aspects of Dinner Ltd and he doesn’t seem to realize that the salaries have to be paid each month.
