Operational Budgeting (5cr)

Learning objectives

The course introduces how to use managerial accounting techniques to make and monitor operational budgets in hotel, restaurant and tourism business and how to use the operational budgets as management tools. The student will also learn how basic operational profitability and productivity ratios are used in the hospitality business. Use of spreadsheets when making the budgets will be handled.

On successful completion of this course, the student is able to

To apply Cost-Volume-Profit analysis
To use methods of forecasting sales and expenses
Make the main operational budgets
Make the variance analysis of budgets
Use the industry operational profitability and productivity ratios as management tools and put them in practical use
Utilize the spreadsheets when making financial calculations.

Contents

Basic cost concepts
Cost-Volume-Profit analysis
Forecasting methods
Sales budget
Planning and budgeting of expenses
Budgeted Income Statement
Variance analysis
Efficient use of labour force

Implementation methods, demonstration and Work&Study

Contact lessons
Group working
Individual learning
Examination

Learning materials

Schmidgall, R. 2006 (or later). Hospitality Industry Managerial Accounting. Educational Institute of the American Hotel & Motel Association, USA. Chapters 6, 7, 9 and 10
Lecture materials in Moodle

Lähtötaso ja sidonnaisuudet muihin opintojaksoihin

Prerequisites: Financial accounting

Assessment criteria - grade 1

When the implementation type of the course is CONTACT, ONLINE or BLENDED it is required that the student is present during those teaching hours that are marked in the study schedule. If you are absent more than 25 %, your grade will be lowered by one. If you are absent more than 50 %, the course is failed.

The student masters the basic aspects of operational accounting techniques included in course contents. With given instructions, the student has the ability to perform basic tasks, but needs a lot of guidance.

Assessment criteria - grade 3

The student masters the essential aspects of operational accounting techniques included in course contents. With given instructions, the student will be able to perform basic tasks.

Assessment criteria - grade 5

The student masters the aspects of operational accounting techniques included in course contents. The student has the ability to apply the knowledge and skills learned in management position.