HOSPITALITY INDUSTRY MANAGERIAL ACCOUNTING

Educational Institute American Hotel & Lodging Association

Hospitality industry managerial accounting presents managerial accounting

concepts and explains how they apply to specific operations within the hospitality
industry.

Chapter 1

Introduction to Managerial Accounting

a. Overview of the hospitality industry

b. The Accounting Function in the Hospitality Industry
c. Principles of accounting
d. Branches of accounting
e. Review of accounting mechanics
f. The accounting cycle
g. Forms of business organization
h. Ethics and hospitality accounting
i. Computer applications

Chapter 2

The Balance Sheet

a. Purpose of the balance sheet

b. Limitation of the balance sheet
c. Balance sheet formats
d. Contents of the balance sheet
e. Balance sheet analysis

Chapter 3

The Income Statement

a. Major elements of the income statement

b. Relationship with the balance sheet
c. Income statements for internal and external users
d. Uniform systems of accounts
e. Approach to hospitality industry income statements
f. Summary operating statement
 g. Contents of the income statement
h. Departmental statements
i. Lodging industry operating statistics
j. Analysis of income statements
k. Uniform system of accounts for restaurants

Chapter 4

The statement of cash flow statements

a. The purpose of the statement of cash flows

b. Classification of cash flows
c. Conversion of accrual to net cash flows from operation
d. Preparing the SCF
e. Analysis of statements of cash flows

Chapter 5

Ratios analysis

a. Ratio standards
b. Purposes of ratio analysis
c. What ratios express
d. Classes of ratios
e. Liquidity ratios
f. Solvency ratios
g. Activity ratios
h. Profitability ratios
i. Operating ratios

Chapter 6

Basic cost concepts

a. General nature of cost

b. Costs in relation to sales volume
c. Determination of mixed cost elements
d. Fixed versus variable costs
e. Direct and indirect costs
f. Controllable costs
g. Differentioal costs
h. Relevant costs
i. Sunk costs
j. Opportunity costs
k. Average and incremental costs
 l. Standard costs
m. Decision making situations

Chapter 7

Cost Volume Profit Analysis

a. CVP analysis defined

b. CVP equation single product
c. CVP equation multiple products
d. Income taxes and CVP analysis
e. Profit volume graphs
f. Cash flow CVP analysis
g. Comprehensive problem
h. Operating leverage