Lectures, demonstrations of material, and discussions will be used, together with any appropriate technology available which may be of assistance to students.
1. Analysis
1.1 The balance sheet - horizontal, vertical, base-year
1.2 The income statement - horizontal, vertical, base-year
1.3 Trend and ratio analysis
1.4 Relevant and irrelevant items
2. Financial Statements
2.1 Cost of good sold
2.2 Allocation indirect costs
3. Statement of cash flows
3.1 Operating activities
3.2 Investing activities
3.3 Financing activities
3.4 Noncash investing and finaning activities
4. Internal control
4.1 Objectives
4.2 Characteristics
4.3 Basic requirements for various functions
4.4 Small operations
5. Basic cost concepts
5.1 Context and nature
5.2 Various types of costs
5.3 Determination of mixed cost components
5.4 Costs for decision making purposes (relevant costs)
5.5 Avoidable and unaviodable costs
5.6 High-low method
6. Cost-volume-profit analysis
6.1 Assumptions, limitations, relationships, fixed and variable costs
6.2 Single product
6.3 Multiple products
7. Cost approaches to pricing
7.1 Price elasticity of demand, yield manangement, market segment room rate
7.2 Informal pricing approaches
7.3 Cost approaches
7.4 Equivalent room occupancy
7.5 Bottom-up and Hubbart approaches
8. Budgeting
8.1 Forecasting methods
8.2 Flexible budgets, variances
8.3 Cash management and budgeting
8.4 Capital budgeting - accounting rate of return, payback, net present value
The student will be able to:
- analyze financial and operating results for hospitality businesses;
- calculate and prepare a cost of good sold schedule;
- prepare a statement of cash flows;
- describe and recommend internal control procedures appropriate to the various operating activities and concerns within the industry;
- describe and identify various types of costs;
- demonstrate the use of cost-volume-profit techniques to assist in making decisions;
- apply various cost and pricing concepts to assist with establishing pricing;
- prepare operating and cash budgets and know how to use them for control purposes, calculate the accounting rate of return, payabck and net present value for a project.
| Assignments/Quizzes | 0 -10% |
| Tests | 20- 30% |
| Midterm | 35% |
| Final | 35% |
| Total | 100% |
STUDENTS MUST COMPLETE BOTH THE MIDTERM AND FINAL TO OBTAIN CREDIT FOR THE COURSE.
Textbooks and Materials to be Purchased by Students
- Martin G. Jagels, Hospitality Managerial Accounting, Latest Ed., Wiley, or similar material as determined by instructor, or other textbook(s) approved by the Department.
- Calculator: Department approved calculators.
HOSP 2455 (may be taken as a corequisite)