Cost accounting for the hospitality industry
Hotel management and operational expense accounting
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.
What You Will 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
Who Should Attend!
- Hotel managers
- Hospitality managers
- Accountants
- Hospitality employees
- Department heads
- Beginner hotel managers
- Restaurant managers