Hospitality Industry Managerial Accounting - PowerPoint PPT Presentation

1 / 18
About This Presentation
Title:

Hospitality Industry Managerial Accounting

Description:

Designed to focus attention on departmental results such as rooms and food ... Departmental statements supplementary to the income statement are referred to as ... – PowerPoint PPT presentation

Number of Views:1020
Avg rating:5.0/5.0
Slides: 19
Provided by: donsth
Category:

less

Transcript and Presenter's Notes

Title: Hospitality Industry Managerial Accounting


1
Hospitality Industry Managerial Accounting
  • HRT 374
  • Chapter 3
  • Don St. Hilaire

2
Chapter 3 The Income Statement
  • Describe revenues, expenses, gains, and losses as
    they are presented on the income statement.
  • Revenues Food, beverage, rooms sales, rental,
    interest, dividend income.

3
Chapter 3 The Income Statement
  • Describe revenues, expenses, gains, and losses as
    they are presented on the income statement.
    Continued
  • Expenses -
  • Use of assets.
  • Increase in liabilities to produce products and
    services.
  • Labor
  • Cost of goods sold.

4
Chapter 3 The Income Statement
  • Describe revenues, expenses, gains, and losses as
    they are presented on the income statement.
    Continued
  • Gains and losses from incidental transactions.

5
Chap. 3 Income Statement
  • Distinguish between income statements prepared
    for internal users and those prepared for
    external users
  • Summary income statement -external.
  • Income statement and supplemental schedules for
    management - internal.

6
Ch. 3 Income Statement
  • Cost of Sales (cost of goods sold) - Calculation
  • Beginning Inventory
  • Inventory Purchases
  • Cost of Goods Available
  • - Ending Inventory
  • Cost of Goods Consumed
  • - Goods used internally
  • Cost of Goods Sold

7
Ch. 3 Income Statement
  • Identify the differences between the departmental
    statements prepared for profit centers and those
    prepared for service centers in a hospitality
    operation.
  • Profit center statements
  • Revenues.
  • Cost of sales.
  • Labor expenses.
  • Other direct expenses.

8
Ch. 3 Income Statement
  • Identify the differences between the departmental
    statements prepared for profit centers and those
    prepared for service centers in a hospitality
    operation.
  • Service center statements
  • Labor expenses.
  • Other expenses.

9
Ch. 3 Income Statement
  • Distinguish between departmental revenue and
    departmental income, and describe the relative
    profitability of operated departments at a
    typical hotel.
  • Departmental revenues less direct expenses equal
    income.
  • Departmental gross profits.
  • Rooms department is most profitable.

10
Ch. 3 Income Statement
  • State how a hospitality operations income
    statement may be interpreted by means of
    horizontal and vertical analyses and base-year
    comparisons.
  • Horizontal absolute and relative differences.
  • Comparative income statements.
  • Vertical each line item as a of total sales.
  • Common-size income statements Base-year
    comparisons

11
Ch. 3 Income Statement
  • Understand and use the most current version of
    the uniform system of accounts applicable to the
    lodging industry.
  • State 4 advantages to using a uniform system of
    accounts in hospitality operations.
  • Turnkey system.
  • Permits comparison among different operations
    through a uniform classification and presentation
    of operating results.

12
Ch. 3 Income Statement
  • Understand and use the most current version of
    the uniform system of accounts applicable to the
    lodging industry. Continued
  • State 4 advantages to using a uniform system of
    accounts in hospitality operations. Continued
  • Time-tested.
  • Adaptable for small and large operations.

13
Ch. 3 Income Statement
  • Uniform System of Accounts of the Lodging
    Industry (USALI- created in 1996) income
    statement.
  • Designed to be used at the property level rather
    than the corporate level of a hotel.

14
Ch. 3 Income Statement
  • Corporate level where more than one property is
    involved will be considerably different
  • Includes sale of properties.
  • Includes corporate overhead.
  • Includes other items not shown an individual
    propertys statements.

15
Ch. 3 Income Statement
  • Format is based on Responsibility Accounting
  • Designed to focus attention on departmental
    results such as rooms and food departments.
  • Provides separate line reporting by profit center.

16
Ch. 3 Income Statement
  • Format is based on Responsibility Accounting
    continued
  • Departmental statements supplementary to the
    income statement are referred to as schedules and
    provide management with detailed information
    about the operated departments and service
    centers.

17
Ch. 3 Income Statement
  • General Format
  • Revenues
  • Less Direct operating expenses -(cost of goods
    sold, direct labor, other direct)
  • Equals Departmental Operating Income
  • Less Overhead expenses. - ( undistributed
    operating expenses - such as marketing,
    management fees, and fixed charges)
  • Equals Net Income

18
Ch. 3 Income Statement
  • Uniform System of Accounts for Restaurants (USAR)
    income statement.
  • Developed by the National Restaurant Association
    (NRA).
  • Benefits similar to those of USALI.
Write a Comment
User Comments (0)
About PowerShow.com