w.e.f.

Academic Year 2009-10 ‘E’ Scheme

Contents: Theory

Chapter Title Hours Marks

Management of Cash (Receivable and Payables)
1.1 Meaning of Cash, Motive for Cash Holding. Optimum Cash
Management and Relative Theories / Models & its
Significant application to Hospitality Industry.
1 1.2 Cash Budget and Cash Flow Analysis as a tool of Cash 16 28
Management.
1.3 Problems based on Cash Budget and Cash Flow Analysis.

Forecast of Working Capital

2.1 Working Capital – Meaning, Scope and Kinds. Factors
2 affecting the working capital for Hospitality and Other 06 08
Industries. Sources to finance Working Capital.
2.2 Problems based on forecasting of working capital.
Ratio Analysis [ Financial Analysis ]
3.1 Financial Statement – Meaning, Nature, Objectives and
Characteristics of Ideal Financial Statement. Use and
Limitations of Financial Statement. Anatomy of Income
Statement and Balance Sheet.
3 3.2 Meaning, Concept, Types, Methods of Financial Analysis. 10 16
Ratio Analysis – Meaning, Classification, Nature, Scope,
Significance to Hospitality Industry and Limitations.
3.3 Problems on Profitability, Liquidity, Solvency, Return /
Overall Profitability and Turnover Ratios.

Business Budgets
4.1 Meaning of Budget, Features, Requirements for ideal Budgets
( Key Factors ), Kinds of Budget and Points of Distinction,
Advantages and Disadvantages & its Significance to
Hospitality Industry.
4 4.2 Meaning, Objectives, Functions, Advantages, Limitations and 16 24
Prerequisites or essentials of Budgetary Control.
4.3 Capital Budget – Meaning, Features, Methods of Evolution
of Capital Budget. Roll of Depreciation in Capital Budgeting.
4.4 Problems on Flexible Budgets, Operational / functional
Budgets & Capital Budgeting.
Variance Analysis [ Standard Costing ] ( Practical Aspect )
5.1 Meaning, Features, Area of Application, Advantages and
Disadvantages. Significance of Variance Analysis to
Hospitality Industry. Points of Distinction between Standard
5. Cost, Historical Cost and Estimated Cost. Normal Standards 06 08
and Revised Standards. Controllable and uncontrollable
factors / elements.
5.2 Problems of Material and Sales Variances only.
w.e.f. Academic Year 2009-10 ‘E’ Scheme

CVP analysis and Decision Making ( Marginal Costing )

6.1 Meaning of CVP, BEP, Margin of Safety : Objectives,
application, assumptions, advantages and Disadvantages.
 Presentation of CVP / BEP Charts.
6.2 Meaning, Necessity, Scope, advantages and disadvantages of
Marginal Costing & its Significance to Hospitality Industry in
6 decision making. 10 16
6.3 Problems on -
 Computation of BEP, MOS, Expected Profit and Sales
 Make / Hire or Buy.
 Dropping a Line / Product.
 Acceptance of an order at a special Price.
 Roll of Key / Limiting factor in decisions.
TOTAL 64 100

Learning Resources:
Books

Year of
Sr. Title
Author / s Publication Publisher
No. (Alphabetical Order) and Edition
Basic Financial Accounting 2007 Oxford University
1 for Management Paresh Shah 2008 Press
Financial and Cost Control
Dr. Jagmohan Metropolitan, New
2 Techniques in Hotel and 1987
Catering Industry Negi Delhi – 02
Chaitanya Publication
3 Financial Management S. C. Kuchhal 1969 / 2005 House
Ozi A. D’Cunha
Hotel Accountancy and The Dicky’s
4 Glesson O. 2004
Financial Control Enterprises, Mumbai.
D’Cuncha
Oxford University
5 Hotel Finance Anand Iyengar 2008 Press
R. K. Gupta
6 Management Accounting Shashi K. Gupta 1991 / 2000 Kalyani Publishers.
Rajesh Kothari
7 Management Accounting Abhishek Gupta 2007 / 2007 MacMillan India Ltd.