HTM 2030 Chapter Notes - Chapter 1: Office Supplies, Standard Cost Accounting, Financial Statement

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

Document Summary

Fixed costs : normally unaffected by changes in sales volume, examples, property taxes. Rent: property taxes, license fees, sometimes depreciation. Prime costs : cogs and labour incurred, food, beverage, payroll. Historical and planned costs : historical costs, can be found in record books, books of accounts, planned costs financial statements invoices, managers use historical costs to develop planned costs. Sales concepts : defined as a revenue resulting from the exchange of products and services for value, usually discussed in monetary terms, however, other exchanges are possible (nonmonetary) Importance of sales: without sales, costs cannot be covered, according to stats canada restaurants only make 4. 5% pre-tax profit margins of operating revenue. Total sales: refers to total volume of sales expressed in dollar terms. Total dollar sales by category: total food or beverage sales, total dollar volume of all sale items in one category, e. g. steak sales, total beer sales, etc.