Curriculum Guideline

Hospitality Management Accounting

Effective Date:
Course
Discontinued
No
Course Code
HOSP 2310
Descriptive
Hospitality Management Accounting
Department
Hospitality Management
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
201930
PLAR
Yes
Semester Length
15 Weeks X 4 Hours Per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 3 Hours Seminar: 1 Hour Total: 4 Hours
Method Of Instruction
Lecture
Seminar
Methods Of Instruction

Lectures, demonstrations of material, and discussions will be used, together with any appropriate technology available which may be of assistance to students.

Course Description
This course focuses on the management accounting concepts and practices used by those in management positions within the industry for decision making and control purposes. Topics include: statement and operations analysis, cash flows and management, internal controls, cost concepts, C-V-P analysis, pricing considerations, and budgeting.
Course Content

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

 

Learning Outcomes

The student will be able to:

  1. analyze financial and operating results for hospitality businesses;
  2. calculate and prepare a cost of good sold schedule;
  3. prepare a statement of cash flows;
  4. describe and recommend internal control procedures appropriate to the various operating activities and concerns within the industry;
  5. describe and identify various types of costs;
  6. demonstrate the use of cost-volume-profit techniques to assist in making decisions;
  7. apply various cost and pricing concepts to assist with establishing pricing;
  8. 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.
Means of Assessment
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.

Textbook Materials

Textbooks and Materials to be Purchased by Students

  1. Martin G. Jagels, Hospitality Managerial Accounting, Latest Ed., Wiley, or similar material as determined by instructor, or other textbook(s) approved by the Department.
  2. Calculator:  Department approved calculators.
Prerequisites
Which Prerequisite

HOSP 2455 (may be taken as a corequisite)