Hotel management
What you'll learn
Activity Based Costing
Variable costing
Customer profit analysis
Market segment profit analysis
Revenue allocation
Cost allocation
Direct cost allocation
Calculating room nights
Calculating stays
Define profit centers
Define cost centers
Define service centers
Define activity centers
Define market segments
Allocation to market segments
Setting up a profit and loss statement per market segment
Requirements
Basic knowledge of the hospitality industry
No other prior knowledge
Description
This course 'Activity Based Costing for the hospitality industry' is based towards students who are somewhat new to hotel industry or small business owners who want to learn more cost management, budgetting and optimizing hotel revenue.Cost management is an important strategy to apply to increase or maximize profits. While setting up a costing system is not an easy task, it is important to have such a system in place. In this course we will discuss some elements and how to incorporate these into a system to increase accuracy in cost pricing.If you have little to no experience when it comes to cost management this course will help you understand what it is and how Activity Based Costing contributes to your business. In this course we will try to break a complex strategy down into smaller more easy to understand parts, so you can start implementing these in your hotel. And even in other industries.Together we will discuss all the basics of ABC costing and go over some of the steps needed to set up a simple system. By the end of this course you will have a solid foundation and basic understanding of, what ABC costing is, why it is important to have such a system in place and what elements are involved.In this course we'll go a step further and incorporate market segmentation as well to define what markets are profitable for our hotel.When you've finished this course you'll understand what Activity Based Costing is and how it might benefit your business. We will discuss profit centers, service centers, cost center, activity centers and allocation keys. We set up a system with first-stage cost drivers and second stage cost drivers. You will learn how to determine the profitability for each activity center and market segment. To finish course by calculating the actual cost price for guests within market segments.
Overview
Section 1: Introduction
Lecture 1 Introduction
Lecture 2 What costing method
Lecture 3 Why costing
Lecture 4 Variable costing
Lecture 5 Activity Based Costing
Section 2: Costs
Lecture 6 Direct costs
Lecture 7 Direct labor costs
Lecture 8 Direct other costs
Lecture 9 Variable overhead costs
Lecture 10 Fixed overhead costs
Section 3: Activity Based Costing
Lecture 11 Implementing Activity Based Costing
Lecture 12 Customer profit analysis
Lecture 13 Market segment profit analysis
Lecture 14 Hotel products
Lecture 15 Centers and segments
Lecture 16 How Activity Based Costing works
Lecture 17 Simple example of Activity Based Costing
Section 4: Activity Based Costing with market segmentation example
Lecture 18 The profit and loss statement
Lecture 19 Room nights
Lecture 20 Revenues
Lecture 21 Cost centers and activity centers
Lecture 22 Allocation details
Lecture 23 Allocation in percentages
Lecture 24 Allocation in value
Lecture 25 Second stage cost drivers
Lecture 26 Rooms allocation
Lecture 27 Food and beverage allocation
Lecture 28 Undistributed expenses allocation
Lecture 29 Second stage allocation overview
Lecture 30 Profit and loss statement revised
Lecture 31 Contribution margin
Section 5: Conclusion
Lecture 32 Conclusion
Section 6: Documents
Lecture 33 Documents
Hotel managers,Department heads,Managers,Cost controllers,Controllers,Accountants,People interested in costing methods
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