Cost Accounting For The Hospitality Industry

Hotel management and operational expense accounting

What you'll learn

The profit- and loss statement

Understanding the cost- and profit centers

How to define cost centers, profit centers and service centers

How different types of expenses work within a hotel

How to calculate the profitability of departments

How to calculate the profitability of services and products

How to allocate overhead expenses

How to allocate operational expenses

How to use market segments for profitability

Setting up a profit- and loss statement per market segment

Setting up a profit- and loss statement per department

How to calculate room rates for a new hotel project

Requirements

Basic understanding of the hospitality market

Basic understanding of hotel operations

Description

This course 'Cost accounting for the hospitality industry' is based towards students who are somewhat new to hospitality industry or small business owners who want to learn more about 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 accounting.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, Variable costing and Activity based costing contribute to your business. In this course we will try to break some complex techniques down into smaller more easy to understand parts, so you can start implementing these in your hotel. And even in other businesses.Together we will discuss all the basics of cost accounting 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 cost accounting is, why it is important to have such a system in place and what elements are involved.In this course we'll go even 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 cost accounting is and how it might benefit your business. We will discuss  profit centers, service centers, cost centers, 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 and figure out what the actual cost of a service or product is.

Overview

Section 1: Introduction

Lecture 1 Introduction

Lecture 2 Why cost accounting

Lecture 3 Variable cost accounting

Section 2: Full cost accounting

Lecture 4 Full cost accounting

Lecture 5 Direct costs

Lecture 6 Direct labor costs

Lecture 7 Other direct costs

Lecture 8 Variable overhead

Lecture 9 Fixed overhead

Lecture 10 Allocation to products

Lecture 11 Products for the hotel

Lecture 12 Allocation keys

Lecture 13 A one product hotel example

Lecture 14 A multiple product hotel example

Lecture 15 A full scale hotel example

Lecture 16 Which profit centers are profitable

Lecture 17 The cost of a hotel product

Lecture 18 Decision making

Lecture 19 Implementing full costing

Section 3: Activity based cost accounting

Lecture 20 Activity Based Costing

Lecture 21 Direct costs

Lecture 22 Direct labor costs

Lecture 23 Direct other costs

Lecture 24 Variable overhead costs

Lecture 25 Fixed overhead costs

Lecture 26 Implementing Activity Based Costing

Lecture 27 Customer profit analysis

Lecture 28 Market segment profit analysis

Lecture 29 Hotel products

Lecture 30 Centers and segments

Lecture 31 How Activity Based Costing works

Lecture 32 Simple example of Activity Based Costing

Lecture 33 The profit and loss statement

Lecture 34 Room nights

Lecture 35 Revenues

Lecture 36 Cost centers and activity centers

Lecture 37 Allocation details

Lecture 38 Allocation in percentages

Lecture 39 Allocation in value

Lecture 40 Second stage cost drivers

Lecture 41 Rooms allocation

Lecture 42 Food and beverage allocation

Lecture 43 Undistributed expenses allocation

Lecture 44 Second stage allocation overview

Lecture 45 Profit and loss statement revised

Lecture 46 Contribution margin

Section 4: Target return pricing

Lecture 47 What is target return pricing

Lecture 48 Price setting

Lecture 49 Why use target return pricing

Lecture 50 To execute target return pricing

Lecture 51 When to use target return pricing

Lecture 52 Calculating target return pricing

Lecture 53 Pricing strategies

Lecture 54 The return on investment

Lecture 55 The simple approach

Lecture 56 The target return pricing example

Lecture 57 The R.O.I.

Lecture 58 The profit tax

Lecture 59 Fixed costs and interests

Lecture 60 Other fixed costs

Lecture 61 Operational overhead

Lecture 62 Departmental profit

Lecture 63 The rooms department

Lecture 64 Direct costs

Lecture 65 Franchise fee

Lecture 66 The average room rate

Lecture 67 Square footage calculation

Lecture 68 Rearranging the numbers

Section 5: The conclusion

Lecture 69 The conclusion

Hotel managers,Hospitality managers,Accountants,Hospitality employees,Department heads,Beginner hotel managers,Restaurant managers