HRIM110 Financial Management in Tourism and Hospitality
Department of Business Studies: Hospitality and Tourism Management
Course Number and TitleHRIM110 Financial Management in Tourism and Hospitality
Number of Credits3 credits
Minimum Number of Instructional Minutes Per Semester2250 minutes
PrerequisitesHRIM100 or permission of the Department of Business Studies
Other Pertinent InformationHRIM cost Accounting provides a clear understanding of the systems and controls used in the industry. Techniques in audit procedure are developed and an appreciation of interdepartmental cooperation are analyzed.
Catalog Course DescriptionA study of the Uniform System of Accounts for Hotels and Restaurants, covering practice with special journals and typical transactions, preparation of monthly and annual reports, analysis of accounting department responsibilities.
Required Course Content and Direction
- To provide controls and accounting methods adopted to the different kinds of hospitality industries.
- To provide the basics of all accounting systems used in the hospitality industry.
- To provide basic techniques of evaluation of financial and operating data.
- To be able to interpret basic business principles and procedures for planning, organizing, and activating a food, beverage, and labor cost control system.
- To be able to interpret the purpose of effective food, beverage, and labor cost controls.
- To be able to develop objectives and goals for institutional and profit making in the other hospitality fields.
- To be able to develop and interpret a budget for a specific operation.
- To be able to organize systems supported with records, to establish standards and to calculate actual food, beverage, and labor costs.
- To be able to evaluate performance by interpreting records and performance.
- To be cognizant of improvement methods and procedures for performance and continuous evaluation of these methods.
- To be able to describe major basic tax and related regulations applying to the hospitality industry.
Planned Sequence of Topics and/or Learning Activities:
- Introduction to the hospitality service industries, basic consumer rationale, ownership or control factors, categories development, lodging industry, food service transportation, recreation and leisure health care, educational complexes, marketing.
- The accounting system, statements and reports, considering the needs of the users, financial statements and their primary concerns, techniques, important concepts, decision-making implications.
- Business entity, fundamental equation, going concern concept, money as a unit of measure, cost, recognition at time of exchange, matching revenue and expenses, accrual accounting, depreciation, period adjustments, cash basis accounting, disclosure.
- Financial statement and uniform systems, types, external users, stockholders and absentee owners, creditors, government agencies. Internal use, uniform system of accounts. Development of the uniform system, income statement, composition of the balance sheet.
- Impact of price level changes, accounting dilemma, comparisons, selecting an index, developing adjusted operating data, special decisions.
- Tools of analytical analysis, ratio analysis, mathematics, ratios.
- Comparison and analysis, types.
- Management information systems, communications, flow, information, data collection points, reporting levels, daily reports, monthly and yearly.
- Internal control, characteristics, coordinated systems of control, plan of organization, record keeping, development, cash receipts, cash disbursement.
- Nature of cost, planning, reduction, fixed; estimating, differential, sunk cost, opportunity controllable overhead, etc.
- Cost-Volume-Profit Analysis, and Break Even Point Analysis, uses basic equations, recognize departmental limits.
- Cost accounting: purpose of cost accounting planning, controls, decisions, job orders and process cost accounting, cost system development of determined cost.
- Food and beverage control: receiving, storing, issuing, preparation portioning, service, sales, monitoring, special controls, procedures, follow-up.
- Payroll control, elements of the control process, job analysis, job descriptions, devices, station-layout, manpower, scheduling, forecasting, hiring process, interviewing, payroll reports.
- Pricing decision, methods, percentage markup, rooms pricing, theory, demand, sales mix, popularity indexing, menu scoring.
- Budgeting, profit planning, communication, pricing, horizons, process, sales forecast payroll, long range plan.
- Sources and uses of funds: major sources, internal source, external, major uses, depreciation.
- Working capital, capital vs. working cash, investing, planning, inventory, credit/budgeting.
Assessment Methods for Core Learning Goals:
Reference, Resource, or Learning Materials to be used by Students:
- See course outline for required textbook.
- Hands and instructional material when appropriate.
Teaching Methods Employed
- Students participate in open discussions, prepare reports, and may conduct independent project(s).
- Quizzes and tests at appropriate subject intervals all add to serve as a basis for grading purposes.
Review/Approval date -4/99