One of a series of three self-instructional units, these materials are aimed at helping British hotel and catering managers improve profits and/or reduce costs in their areas of responsibility. Following an introduction and a paragraph on how to use the unit, section 1 covers how to use management information. The section includes these trainee objectives and pencil and paper activities to help trainees meet them: (1) specify, for a given management position, what financial reports should be produced and how frequently; and (2) describe how point-of-sales equipment and computer-based information systems can assist in the production of management information and specify the general requirements for such systems. Section 2 tells how to interpret financial reports and includes pencil and paper activities to help trainees meet these objectives: (1) identify how different receipts and expenditures affect profit measurement; and (2) interpret financial reports by analyzing variances and trends. Section 3 teaches how to use budgets for planning and control and includes pencil and paper activities to help trainees meet these objectives: (1) understand how revenue budgets should be prepared; (2) prepare a simple profit forecast for an operating department, using given historical data and specified assumptions; (3) prepare a simple revenue budget for an operating department, using a given profit forecast and given quantified actions for profit improvement; and (4) understand how revenue budgets are used to control business performance. (CML)