Full Costing For The Hospitality Industry

Hotel management

What you'll learn

Full costing method

Variable costing

Absorption costing

Defining profit centers

Defining service centers

Allocation of costs

What direct costs are

What variable and fixed overhead costs are

Setting up allocation keys

Defining the actual costs of profit centers

Defining the actual costs of products and services

Calculating the profitability of departments and profit centers

Calculating the profitability of services

Implement a more cost acurate costing system

Requirements

A basic understanding of hotel operations is preferred

Description

This course 'Full 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 full 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 full 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 full costing is, why it is important to have such a system in place and what elements are involved.When you've finished this course you'll understand what full costing is and how it might benefit your business. We will discuss  profit centers, service centers and allocation keys. What is variable costing and how is it different from full costing. You will learn how to determine the profitability for each department and the actual cost price for services and products the hotel sells.

Overview

Section 1: Introduction

Lecture 1 Introduction

Section 2: Costing methods

Lecture 2 What costing method

Lecture 3 Why a costing method

Lecture 4 Variable costing

Lecture 5 Full costing

Section 3: Direct costs

Lecture 6 Direct costs

Lecture 7 Direct labor costs

Lecture 8 Other direct costs

Section 4: Overhead costs

Lecture 9 Variable overhead costs

Lecture 10 Fixed overhead costs

Section 5: Allocation of costs

Lecture 11 Allocation to products

Lecture 12 Products for the hotel

Lecture 13 Allocation keys

Section 6: A one product hotel example

Lecture 14 A one product hotel example

Section 7: A multiple product hotel example

Lecture 15 A multiple product hotel example

Section 8: A full scale hotel example

Lecture 16 A full scale hotel example

Lecture 17 Which profit centers are profitable

Lecture 18 The cost of a hotel product

Section 9: Decision making

Lecture 19 Decision making

Lecture 20 Implementing full costing

Section 10: Documents

Lecture 21 Example with tables

Hotel managers,Business owners,Hotel owners,Managers,Beginner managers, hotel managers,Accountants