HTM 2030 Lecture Notes - Lecture 2: Net Income, Income Statement, Standard Cost Accounting

• School: University of Guelph
• Department: Hospitality and Tourism Management
• Course: HTM 2030
• Professor: Iain Murray

Document Summary

Expenses: money spend in order to earn revenue. Revenue sets the context within which decisions about expenses happen: r e = net income. Relationship: income and expenses from increasing income. Sales can be discussed in a number of ways. Sales are most often discussed in either: monetary terms, non-monetary terms. Total sales: the total volume if sales in a given period of time, expressed in dollars, only tells the sum of total without any details if the pieces. Total sales by category: sales per item or areas (total food; total beverages; total steak, more valuable when seeking to understand what was sold. Total sales by server: an evaluative tool of productivity for individual servers within a given period if time. Total sales per seat: valuable for comparing sales of similarly styled restaurants or chains of different sizes, sales / seats = average sales per seat.