HTM 2030 Lecture Notes - Lecture 3: Cost Accounting, Operating Budget, Income Statement

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

Document Summary

Exercising governing power over events in order to achieve a desired outcome or to avoid an undesirable outcome. What are the goals and the objectives of your operation: producing the highest quality of food in the city, supporting local procedures, maintaining low labour costs. What are the sub goals and sub objectives: hiring excellent chefs/cooks, purchasing high quality foods from within the region, creating positive work environment, high motivation. Deals with both sides of the income statement: sales control, ensuring all of the appropriate income is received by the business, cost control, regulating costs to guard against excessive costs, key causes of excessive costs, inefficiencies, waste. Aspects of the food and beverage strongly resemble manufacturing: core differences including the extreme fluctuations in production demands, raw materials are purchased, received, stored and issued for the purpose of transformation into finished products. Control - defined: control is a process used by managers to manage expenses and to direct.