Managerial Accounting for the Hospitality Industry

by Lea R. Dopson (University of North Texas. Denton, Texas); David K. Hayes (Lansing, Michigan)

• ISBN13: 9780471723370
• ISBN10: 0471723371
• Edition: CD
• Format: Hardcover
• Copyright: 2008-10-01
• Publisher: Wiley

Summary

Though not all hospitality students want to be accountants, managerial accounting is a crucial skill for all hospitality students. Written for aspiring hospitality managers rather than accountants, this resource focuses on how accounting principles apply directly to hospitality management. With a reader-friendly style suitable for those with no prior accounting background, this book makes accounting fun with practical examples scattered throughout each chapter that clearly illustrate accounting concepts and theories. A running case study helps readers immediately apply what they ve learned to the types of key management decisions made at a full-service resort.

Author Biography

Lea R. Dopson, EdD, is Chair of Hospitality Management at the University of North Texas inDenton, Texas.

David K. Hayes, PhD, is an author and consultant in Okemos, Michigan. He previously held faculty positions at Purdue University, Texas Tech University, and the University of Houston. Most recently, he was the Managing Owner of the Clarion Hotel and Conference Center in Lansing, Michigan.

Table of Contents

Preface	p. vii
Accounting Fundamentals	p. 1
Hospitality Industry Accounting	p. 3
Unique Aspects of the Hospitality Industry	p. 4
The Purpose of Accounting in the Hospitality Industry	p. 6
Branches of Accounting	p. 7
Why Hospitality Managers Use Managerial Accounting	p. 15
The Uniform System of Accounts	p. 16
Ethics and Hospitality Accounting	p. 18
The Blue Lagoon Water Park Resort: A Case Study	p. 22
Can You Do the Math?	p. 24
Apply What You Have Learned	p. 25
Key Terms and Concepts	p. 26
Test Your Skills	p. 26
Accounting Fundamentals Review	p. 29
Bookkeeping and Accounting	p. 30
The Accounting Formula	p. 31
Recording Changes to The Accounting Formula	p. 32
Generally Accepted Accounting Principles	p. 43
The Hospitality Business Cycle	p. 54
Apply What You Have Learned	p. 55
Key Terms and Concepts	p. 56
Test Your Skills	p. 56
Financial Statements	p. 61
The Income Statement	p. 63
The Purpose of the Income Statement	p. 64
Income Statement Preparation	p. 70
Income Statement Analysis	p. 86
Apply What You Have Learned	p. 105
Key Terms and Concepts	p. 105
Test Your Skills	p. 106
The Balance Sheet	p. 112
The Purpose of the Balance Sheet	p. 113
Balance Sheet Formats	p. 119
Balance Sheet Content	p. 120
Components of the Balance Sheet	p. 123
Balance Sheet Analysis	p. 129
Apply What You Have Learned	p. 136
Key Terms and Concepts	p. 136
Test Your Skills	p. 137
The Statement of Cash Flows	p. 143
Understanding Cash Flows	p. 144
The Purpose of the Statement of Cash Flows	p. 145
Sources and Uses of Funds	p. 147
Creating the Statement of Cash Flows	p. 155
Statement of Cash Flows Analysis	p. 167
Apply What You Have Learned	p. 171
Key Terms and Concepts	p. 171
Test Your Skills	p. 172
Ratio Analysis	p. 180
Purpose and Value of Ratios	p. 181
Types of Ratios	p. 185
Comparative Analysis of Ratios	p. 225
Ratio Analysis Limitations	p. 226
Apply What You Have Learned	p. 228
Key Terms and Concepts	p. 229
Test Your Skills	p. 230
Management of Revenue and Expense	p. 237
Food and Beverage Pricing	p. 239
Factors Affecting Menu Pricing	p. 240
Assigning Menu Prices	p. 242
Menu Price Analysis	p. 249
Apply What You Have Learned	p. 268
Key Terms and Concepts	p. 268
Test Your Skills	p. 269
Revenue Management for Hotels	p. 274
Establishing Room Rates	p. 275
Revenue Management	p. 287
Non-Room Revenue	p. 300
Apply What You Have Learned	p. 305
Key Terms and Concepts	p. 306
Test Your Skills	p. 307
Managerial Accounting for Costs	p. 313
The Concept of Cost	p. 314
Types of Costs	p. 315
Cost/Volume/Profit Analysis	p. 335
Apply What You Have Learned	p. 342
Key Terms and Concepts	p. 343
Test Your Skills	p. 343
Accounting Information for Planning	p. 351
Forecasting in the Hospitality Industry	p. 353
The Importance of Accurate Forecasts	p. 354
Forecast Methodology	p. 357
Utilizing Trend Lines in Forecasting	p. 374
Apply What You Have Learned	p. 376
Key Terms and Concepts	p. 376
Test Your Skills	p. 377
Budgeting and Internal Controls	p. 380
The Importance of Budgets	p. 381
Types of Budgets	p. 383
Operations Budget Essentials	p. 387
Developing an Operations Budget	p. 388
Monitoring an Operations Budget	p. 397
Cash Budgeting	p. 406
Managing Budgets through Internal Controls	p. 413
Apply What You Have Learned	p. 418
Key Terms and Concepts	p. 419
Test Your Skills	p. 420
Capital Investment, Leasing, and Taxation	p. 428
Capital Budgeting	p. 430
Capital Investment	p. 433
Financing Alternatives	p. 447
Taxation	p. 454
Apply What You Have Learned	p. 461
Key Terms and Concepts	p. 461
Test Your Skills	p. 462
Glossary	p. 469
About the Authors	p. 489
Index	p. 491
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