Profitability Planning (5 cr)

Evaluation scale

H-5

Schedule

Weeks 1 and 2: Approach to budgeting and forecasting sales, Key Performance Indicators (KPIs) of the hospitality industry
Weeks 3 and 4: Impact of pricing on demand and profitability and Profitability calculations of profit centers and customer segments
Weeks 5 and 6: Operational budgeting and Variance Analysis
Weeks 7 and 8: Cash budgeting and Forecasted Balance Sheet

Implementation methods, demonstration and Work&Study

Contact lessons including:
Group working
Individual learning
Examination

Recognition of Prior Learning, RPL:
Courses or parts of courses at other educational institutes or work experience are not accredited as such towards the HAAGA-HELIA studies directly, but the required skills and competences are demonstrated by a skills examination. Please contact the teacher.

Work-based learning (Work & Study):
If your work tasks support learning goals and skills required of this course, you can gain the competences by working and by connecting practical work with a theme-related knowledge base. ?Please contact the teacher.

Intro

After completing this course, you will understand the central role of financial reporting and financial planning in the business operations of the hospitality, restaurant and tourism sector. During the studies, you will familiarize yourself with different ways of producing essential information through accounting for the decision-making needed to manage the company.

The aim of the course is to bring together the most important competences in management accounting, which will benefit a future supervisor, expert or service professional.

During the course, you will learn the basics of financial communication and how you will be able to communicate more efficiently, taking into account the different stakeholders of the company.

Materials

Schmidgall, R. 2009 (or later). Hospitality Industry Managerial Accounting. Educational Institute of the American Hotel & Motel Association, USA. Chapters: 6-9 and 10
Other study materials in Moodle

Teaching methods and instruction

Teaching is based on contact lessons (starting from calendar week 34/2024): 48 contact hours, 87 hours independent study.

Working life connections

Students are encouraged to actively present their own thoughts and knowledge from their working
experiences . All the assignments are working life related and based on practical cases.

Exam dates and re-exam possibilities

Two classroom exams by Excel (max 2 * 30 p = 60 p) and two home-assignments (max 2 * 10 p = 20 p) during the course will include practical cases related to studied topics.

Internationality

International reporting standards of the hospitality industry are applied in assignments.

Completion alternatives

If you have prior learning of topics studied during this implementation you can demonstrate your competencies: procedure is to be discussed individually, please contact the teacher of this implementation.

Learning assignments

Two individual home-assignments will be given during the implementation.

Assessment methods

Exam and Home assignments 100% (total max 80 p) showing:
Student´s skills to produce forecasts and use hospitality KPIs (Key Performance Indicators)
Student´s skills to apply in solving managerial accounting problems,
Student´s skills to apply operational and cash budgets included in course contents and handle them as management tools

Evaluation table: S1 = 36 - 43 p / S2 = 44 - 51 p / G3 = 52 - 59 p / G4 = 60 - 67 p / E5 = 68 - 80 p