logo

Finance in the Hospitality Industry : Assignment

   

Added on  2020-02-24

8 Pages1571 Words31 Views
FINANCE IN THE HOSPITALITY INDUSTRY
Finance in the Hospitality Industry : Assignment_1
ContentsAC2.1- Discuss elements of cost, gross profit percentages and selling prices for products andservices............................................................................................................................................3AC2.2- Evaluate methods of controlling stock and cash in a business and services environment.6References........................................................................................................................................8
Finance in the Hospitality Industry : Assignment_2
AC2.1- Discuss elements of cost, gross profit percentages and selling prices forproducts and servicesComponents of costCost = Material cost + Labour cost + OverheadMaterial cost: Material cost can be defined as the cost which is incurred on the procurement ofmaterial for the purpose of manufacturing product or providing services. In the hospitalityindustry, the material is used to provide services to customers. The material can be directmaterial and indirect material (Drury, 2012). Those materials which can be identified in the endproduct or end service are direct material and vice-versa. Labour cost: Labour cost or wages is that cost which is incurred on a human resource that isbeing used in the production of any product or in providing services. Labour cost varies on thebasis of the type of labour i.e. skilled labour, semi-skilled and unskilled labour. Labour cost canbe related to production, supervisor, transportation, maintenance, etc. Direct labour cost is thatcost which is directly related to the production of product or provision of services. Overheads: Indirect expenses or overheads are those expenses that are incurred in support ofdirect expenses or those expenses which are incurred on supporting activities. Overheads aredivided into many categories but the following are common overheads:Production or manufacturing overhead: This includes indirect expenses or overheads incurred inthe production process. Administrative overhead: This includes indirect expenses incurred in administrative activities ofthe business organisation. Selling overhead- These expenses are incurred on selling the product or providing services to endconsumers during the reporting period. Distribution overhead- Distribution expenses are related to distribution activities of the businessorganisation.
Finance in the Hospitality Industry : Assignment_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Cost and Budgeting in Hospitality
|14
|1206
|90

Finance in Hospitality
|21
|1605
|46

Management Accounting: Portfolio of Calculations and Comments
|17
|2506
|472

Advantages and Disadvantages of Budgeting Control Techniques
|16
|3624
|49

Management Accounting Principles
|15
|1088
|49

Assignment on Marginal Costing
|4
|750
|355