HTM 2030 Chapter Notes - Chapter 2: Operating Budget, Payback Period, Cost Accounting

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

Document Summary

Control: exercising governing power over events in order to achieve a desired outcome or to avoid an undesirable outcome. Establish goals ahead of time (don"t waste time) Producing the highest quality food in the city. What are the sub-goals and sub-objectives (measurable, speci c & immediate steps) Purchasing high quality foods from within the region. I. e. , goal= 90 in course, sub-goal= 90 on midterm. Deals with both sides of the income statement. Sales control: ensuring all of the appropriate income is received by the business. Important to require that each employee records each sale accurately. Useful to compare sales records with production records to ensure that all quantities produced are accounted for. Cost control: regulating costs to guard against excessive costs. Ongoing process that involves purchasing, receiving, storing, issuing, & preparing food and beverage for sale; training and scheduling the personnel involved; and ensuring revenues are accounted for and properly used. Key causes of excessive costs: inef ciencies & waste.