Hospitality Management Accounting

Curriculum Guideline

Effective Date:
Course Code
HOSP 2310
Hospitality Management Accounting
Hospitality Management
Commerce & Business Administration
Start Date
End Term
Not Specified
Semester Length
15 Weeks
Max Class Size
Contact Hours

Lecture: 3 hours/week

Seminar: 1 hour/week 

Method(s) Of Instruction
Learning Activities

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 goods 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

Upon completion of this course, the successful 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 and;
  8. prepare operating and cash budgets and know how to use them for control purposes, calculate the accounting rate of return, payback and net present value for a project.
Means of Assessment

Assessment will be in accordance with the Douglas College Evaluation Policy.

Assignments/Quizzes   0% - 25%
Midterm examination       25% - 35%
Tests or second midterm examination 25% - 35%
Final examination 25% - 35%
Total         100%

STUDENTS MUST WRITE THE MIDTERM(S) AND THE FINAL EXAMINATIONS TO OBTAIN CREDIT FOR THE COURSE. Only approved calculators can be used during any test/examination.

Students may conduct research as part of their coursework in this class. Instructors for the course are responsible for ensuring that student research projects comply with College policies on ethical conduct for research involving humans, which can require obtaining Informed Consent from participants and getting the approval of the Douglas College Research Ethics Board prior to conducting the research.

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.

HOSP 1210 OR ACCT 1110 AND

Students must have completed 24 credits of 1000 HOSP Program level courses.

Which Prerequisite

HOSP 2455 (may be taken as a corequisite)