Activity Based Costing For The Hospitality Industry

Hotel management

What you'll learn

Activity Based Costing

Variable costing

Customer profit analysis

Market segment profit analysis

Revenue allocation

Cost allocation

Direct cost allocation

Calculating room nights

Calculating stays

Define profit centers

Define cost centers

Define service centers

Define activity centers

Define market segments

Allocation to market segments

Setting up a profit and loss statement per market segment

Requirements

Basic knowledge of the hospitality industry

No other prior knowledge

Description

This course 'Activity Based Costing for the hospitality industry' is based towards students who are somewhat new to hotel industry or small business owners who want to learn more cost management, budgetting and optimizing hotel revenue.Cost management is an important strategy to apply to increase or maximize profits. While setting up a costing system is not an easy task, it is important to have such a system in place. In this course we will discuss some elements and how to incorporate these into a system to increase accuracy in cost pricing.If you have little to no experience when it comes to cost management this course will help you understand what it is and how Activity Based Costing contributes to your business. In this course we will try to break a complex strategy down into smaller more easy to understand parts, so you can start implementing these in your hotel. And even in other industries.Together we will discuss all the basics of ABC costing and go over some of the steps needed to set up a simple system. By the end of this course you will have a solid foundation and basic understanding of, what ABC costing is, why it is important to have such a system in place and what elements are involved.In this course we'll go a step further and incorporate market segmentation as well to define what markets are profitable for our hotel.When you've finished this course you'll understand what Activity Based Costing is and how it might benefit your business. We will discuss  profit centers, service centers, cost center, activity centers and allocation keys. We set up a system with first-stage cost drivers and second stage cost drivers.  You will learn how to determine the profitability for each activity center and market segment. To finish course by calculating the actual cost price for guests within market segments.

Overview

Section 1: Introduction

Lecture 1 Introduction

Lecture 2 What costing method

Lecture 3 Why costing

Lecture 4 Variable costing

Lecture 5 Activity Based Costing

Section 2: Costs

Lecture 6 Direct costs

Lecture 7 Direct labor costs

Lecture 8 Direct other costs

Lecture 9 Variable overhead costs

Lecture 10 Fixed overhead costs

Section 3: Activity Based Costing

Lecture 11 Implementing Activity Based Costing

Lecture 12 Customer profit analysis

Lecture 13 Market segment profit analysis

Lecture 14 Hotel products

Lecture 15 Centers and segments

Lecture 16 How Activity Based Costing works

Lecture 17 Simple example of Activity Based Costing

Section 4: Activity Based Costing with market segmentation example

Lecture 18 The profit and loss statement

Lecture 19 Room nights

Lecture 20 Revenues

Lecture 21 Cost centers and activity centers

Lecture 22 Allocation details

Lecture 23 Allocation in percentages

Lecture 24 Allocation in value

Lecture 25 Second stage cost drivers

Lecture 26 Rooms allocation

Lecture 27 Food and beverage allocation

Lecture 28 Undistributed expenses allocation

Lecture 29 Second stage allocation overview

Lecture 30 Profit and loss statement revised

Lecture 31 Contribution margin

Section 5: Conclusion

Lecture 32 Conclusion

Section 6: Documents

Lecture 33 Documents

Hotel managers,Department heads,Managers,Cost controllers,Controllers,Accountants,People interested in costing methods