vcc.ca
HOSP 2114: Management Accounting and Cost Control
Effective date
September 2023
Department
Hospitality Management
School
Hospitality, Food Studies and Applied Business
Description
This course uses a decision-making approach to prepare students to be skilled managers in the hospitality industry. The course includes a variety of workplace financial problems and a running theme of strategic management to help students relate management accounting decisions to a company’s success. Course topics will include: analyzing financial data of hotels and restaurant operations, measuring F&B cost and their selling prices, cost-volume-profit analysis, optimizing sales and revenues, budgeting, and capital investment.
Credits
3.0
Year of study
2nd Year Post-secondary
Prerequisites
None
Corequisites
None
Course Learning Outcomes
Upon successful completion of this course, students will be able to:
- Describe the important role of management accounting in today's hospitality operations.
- Apply ethical decision making and sustainability principles to cost controls.
- Describe major costs for hotels and restaurants and how they are presented in the income statement.
- Assess the liquidity, profitability, operations management, and leverage of hospitality operations using financial ratios.
- Use cost-volume-profit analysis methods to optimize the income of hospitality operations.
- Prepare sales and Purchase budget, income statement budget, and cash budget.
- Apply different methods of capital investment as a component of long-term budgeting.
- Describe a management control system and how it relates to organizational goals.
- Apply the different methods of pricing for hotel rooms and menu items of a restaurant.
Prior Learning Assessment & Recognition (PLAR)
To learn more about the PLAR pathways for this course review the Hospitality Management Diploma Program Content Guide.
Hours
Lecture, Online, Seminar, Tutorial: 45
Total Hours: 45
Total Hours: 45
Instructional Strategies
Lecture, Labs, case study, group work, recorded educational videos, simulation, guest speakers, Hotel Property management Software.
Grading System
Letter Grade (A-F)
Passing grade
D (50%)
Evaluation Plan
|
Type |
Percentage |
Assessment activity |
|
Assignments |
5% |
Group activity. |
|
Project |
10% |
Group work on case studies. |
|
Quizzes/Tests |
10% |
Weekly quizzes based on weekly learning. |
|
Midterm Exam |
20% |
This is the first exam to be designed based on the first 35-40% of the course. |
|
Midterm Exam |
25% |
This is the second exam to be designed based on the second 35-40% of the course. |
|
Final Exam |
30% |
The final exam will be designed based on all learning material, except the introductory lessons taught in beginning weeks. |
Course topics
- The differences between management accounting and financial accounting, the importance of management accounting in hospitality operations, standards of Competence, Confidentiality, Integrity, and Credibility in management accounting.
- Analyzing income statement and balance sheet by focusing on hotels and restaurants operations. Using horizontal, vertical, and ratio analysis.
- Cost concepts: cost objects, types of costs, cost in restaurants, costs in hotels, direct and indirect cost, variable and fixed costs, mixed costs.
- Food and beverage costing
- Cost-Volume-Profit analysis
- Menu engineering
- Revenue and Profit optimization
- Different methods of pricing rooms for hotels and pricing menu items for restaurants.
- Budgeting; Sales budget, purchase budget, income statement budget, capital budget, cash budget. decision making based on the comparison of budgeted numbers to actual numbers.
- Capital Investment; return on investment (ROI), accounting rate of return (ARR), pay back method, net present value (NPV) of investment.
Learning resources
textbook, several sample questions, case studies, online learning activities.
Notes:
- Course contents and descriptions, offerings and schedules are subject to change without notice.
- Students are required to follow all College policies including ones that govern their educational experience at VCC. Policies are available on the VCC website at:
https://www.vcc.ca/about/governance--policies/policies/. - To find out if there are existing transfer agreements for this course, visit the BC Transfer Guide at https://www.bctransferguide.ca.