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Hospitality Management Accounting

Course Code: HOSP 2310
Faculty: Commerce & Business Administration
Credits: 3.0
Semester: 15 Weeks X 4 Hours Per Week = 60 Hours
Learning Format: Lecture, Seminar
Typically Offered: TBD. Contact Department Chair for more info.
course overview

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


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.

Means of Assessment

Assignments/Quizzes   0% -10%
Midterm examination       30% - 35%
Tests or second midterm examination 30% - 35%
Final examination 30% - 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.

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.

course prerequisites

HOSP 1210 OR ACCT 1110


Courses listed here must be completed either prior to or simultaneously with this course:

  • No corequisite courses


Courses listed here are equivalent to this course and cannot be taken for further credit:

  • No equivalency courses

curriculum guidelines

Course Guidelines for previous years are viewable by selecting the version desired. If you took this course and do not see a listing for the starting semester/year of the course, consider the previous version as the applicable version.

course schedule and availability
course transferability

Below shows how this course and its credits transfer within the BC transfer system. 

A course is considered university-transferable (UT) if it transfers to at least one of the five research universities in British Columbia: University of British Columbia; University of British Columbia-Okanagan; Simon Fraser University; University of Victoria; and the University of Northern British Columbia.

For more information on transfer visit the BC Transfer Guide and BCCAT websites.


If your course prerequisites indicate that you need an assessment, please see our Assessment page for more information.