| SUBJECT CODE |
: DHM 362 |
| SUBJECT NAME |
: ACCOUNTING FOR HOSPITALITY MANAGERS |
| SEMESTER |
: 3 |
| CREDIT HOURS |
: 5 |
| SCHOOL |
: School of Hospitality and Tourism Management |
| COURSE |
: Diploma / Diploma in Hospitality Management |
OBJECTIVES
At the completion of the course, the student able to:
List the revenue centres in and revenue accounts used by a hotel, and explain hotel revenue accounting procedures.
Describe basic internal control forms and procedures used in food and beverage sales.
Describe and give examples of financial reporting centers.
List the types of expenses incurred and expense accounts used
in hotel, and explain hotel accounting procedures for expenses and bad
debts.
Explain the logic and procedure for calculating cost of sales.
Describe procedures for hospitality payroll accounting
(including requirements for tipped employees), and explain major
payroll deductions and taxes.
LEARNING OUTCOME
Week 1
Define revenue centres and identify examples.
Define revenue accounts, identify examples and explain cost of sales & gross profit.
Understand trade discounts & cash discounts and two methods of recording invoices & discounts.
Common internal controls forms & procedures in food and beverage sales.
Differentiation of guest and city ledger.
Identification of 3 front office staff part of accounting.
System used for cash and data collection.
Week 2
Define business segmentation and describe its relevance to a hospitality corporation comprising multiple hotels.
Explain responsibility accounting identity four broad
categories of expenses and describe the difference between direct and
indirect expenses.
Identify the typical bookkeeping accounts used to record expenses for the various departments in a hotel property.
Week 3
Items classified as property & equipment.
Summarize the difference between accounting for building repairs and accounting for building improvements.
Explain the purpose of depreciation, the affected accounts, and the different types of value of assets.
Describe the productive-output method of depreciation
Explain the accounting consideration involved in the sale, disposal, or trade-in of property and equipment.
Difference between repairs & improvements
Operating lease and capital lease and criteria for differentiation
Week 4
Purpose of depreciation and various methods used.
Computation of depreciation for partial periods.
Special consideration for depreciating china glassware and silver.
Explain amortization of leasehold and leasehold improvements.
Accounting for sale, disposal and trade-in of property & equipment.
Week 5
Define intangible assets, and list common intangible assets discussed this chapter.
Explain the accounting term goodwill and describe how goodwill is amortized.
Compare patents and copyrights and describe how they are amortized.
Week 6
Contrast pre-opening expenses and organization costs.
Renewal and purchase of liquor licenses and amortization.
Cash value of intangible assets security deposit as example.
Two types of basic life insurance and their similarities and differences.
Week 7
Define employer and employee
Define wages and salaries, gross pay, net pay regular pay and overtime pay.
Define two methods calculating overtime pay.
Explain major types of deductions.
Week 8
Understand payroll tax and related forms.
Explain primary function of payroll system, forms, records and procedures.
Describe payroll accounting for tipped employees.
Explain purpose of 8% tip regulation.
Explain methods of allocating tip shortfall among directly tipped employees.
Week 9
Explain purposes and users of departmental statements.
Difference in financial statement formats for revenue centres and support centres.
Understand information included in payroll expenses.
Identify and reference financial statements to other statements.
Week 10
The two groups using income statement
Formats available for presenting data
Elements and conventions used in preparing income statement
Purpose & preparation of common size income statement and comparative income statement
Analysis and interpretation of above income statements
Purpose and contents of statement of retained earnings
Week 11
Use of ratios in analyzing income statement
Explain advantages and limitations of ratio analysis
Differentiate general categories of popular income statement ratios
Typical ratios for room department, formula and interpretation
Typical ratios for F&B, formulas and interpretation
Typical ratios for the hotel, formulas and interpretation
Week 12
Purpose, contents and users of balance sheet
Elements and conventions used in preparing balance sheet
Define assets and classify them into current and non-current assets
Define liabilities and classify them into current and long term liabilities
Item that might appear in equity section of balance sheet
Differentiate between account format statement format and the internal and external format of balance sheet
Purpose and preparation of common size balance sheet, comparative balance sheet, analysis and interpretation
Relationship between statement of retained earnings and balance sheet
Week 13
Describe the use of ratios in the analysis of a hospitality business balance sheet.
Explain the purpose and use of the current ratio, and describe its formula and interpretation
Identify the formulas for food and beverage inventory turnover.
Explain the purpose and use of the assets turnover ratio, and describe its formula and interpretation.
Week 14
Purpose, Use, Formulas and Interpretation.
Food and beverage inventory turnover ratio, fixed assets turnover ratio, debt-to-equity ratio, assets-to-liabilities ratio.
Computation, composition and importance of working capital
Week 15
Purpose and use of statement of cash flows
How and why items may be treated as cash
Identify the general format for the statement cash flows
Differentiate between income and cash flow from operating activities
Preparation of operating activities section
Preparation of investing activities section
Preparation of financing activities section
Use of foot notes and disclosures
Week 16
Role of and criteria for an independent certified public accountant
Purpose, scope and description of audit and auditors report
review and review report compilation and compilation report purpose and
preparation of consolidated financial statements and purpose and
content of an annual report.
Explain the purpose and content of an annual report, and describe how a reader can find and interpret information in the report.
Week 17
Responsibility accounting and how it affects managers roles and duties.
Prepare budgets for variable, fixed and semi-variable expenses
Determination of break even points contribution margins and profit target
Effects of price increase on costs
Week 18
Apply the concept of price elasticity of demand
Identify elements of revenue and explain how change in element affects revenue
Moving average method and percentage method of revenue forecasting
Application of several statistical models for forecasting rooms, food and beverage sales
Use CVP analysis to forecast both revenue and unit sales
Week 19
Various kinds of budgets and the role of them in planning and operating
Kinds of information used in preparing budget
How this information varies depending whether revenues, expense of fixed costs are being budgeted.
Budget reports and budget variances
Master budgets, flexible budgets and their appropriate use
Analysis of sales and expense variances by reasons
Week 20
Determine whether a seasonal business should remain open during the off-season
Factors and elements to be examined in deciding to acquire a business
Advantages and disadvantages in buying a franchise
Terms of realty leases and how to choose between variable and fixed leases
Automobile leases and appropriate timing
Capital budgeting and two simple methods of capital budgeting
SYNOPSIS
Covers
such areas as specialised accounting for hotel revenue and expenses:
accounting for inventory, property and equipment: hospitality payroll
accounting; hotel departmental financial statements; the income
statement, balance sheet, and statement of cash flows; the analysis of
financial statements; interim and annual reports; budgeting expenses;
forecasting sales; budgetary reporting and analysis; and financial
decision-making
Semester & Subjects
Calendar & Timetable
Video Seminars
