Management Accounting and Cost Reduction Techniques in Harriot Hotel

Harriot
Hotel accounts

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Introduction to Harriot Hotel......................................................................................................3
Approach to cost items individually...........................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management accounting is a branch of finance in which managers make relevant
decision-making by viewing necessary accounting statements which will aid organisation to
rectify any deviations in actual performance in order to increase efficiency of operations and
promote efficiency. Management accounting and cost reduction techniques are one of most used
methods which are adopted by various organisation in order to manage cost and revenue in
appropriate manner. As it is seen that Covid-19 has impacted operations of various organisations
in respect of its operations and survival as global lock down was initiated which has crippled
operations of hotel and tourism industry. In this report, Harriot hotels wants to expand its
operations further in order to advance revenue and eliminate losses which were incurred at the
times of Covid-19. As given hotel is thinking about expansion of its operations in china through
formulation of strategic techniques. In order to increase its room capacity expansion, it has
adopted technique of cost reduction to manage its relevant cost and profits. There are various
types of costs in respect of given hotel such as employee based costs, advertising expenses,
interest on loans, customer discounts, stationary usage and so on. Through adoption is technique,
organisations can cope with contingencies being occurred at time of pandemic so that optimum
market position can be retained.
Main Body
Introduction to Harriot Hotel
Harriot hotels is a wide chain of hotels which was initially founded by Sir John D.
Brockville in 1941. During the period respective hotel has become one of the most developed
and known market player which has operations all over the world. It has managed to outgrow
across various parts of globe which has made it one of wealthy hotel chain over the world.
Though Covid-19 has broke down flow of operations due to lock down across globe which
disabled such hotel to operate its activities in smooth manner, Harriot hotel has somehow
managed to expand its operations further in china with the use of strategic focus and techniques.
Therefore in order to expand its operations ahead, respective hotel needs to make certain
modification in its costing policies in order to advance profits of the hotel. It will be done by
analysing various cost heads and their respective importance in long term.