Hospitality Management Presentation: Cost, Pricing, Stock, Cash & Tax

This presentation provides a comprehensive overview of essential topics in hospitality management. It begins by defining cost and its various categorizations, including fixed, variable, direct, indirect, relevant, and sunk costs. The presentation then delves into pricing mechanisms, differentiating between fixed and variable pricing strategies and discussing factors such as feature-dependent, customer segment-dependent, and volume-dependent pricing. Furthermore, it explores methods for controlling stock, such as just-in-time approaches, reorder lead times, and economic order quantity. Cash control methods, including establishing cash handling policies, accountability forms, and credit and collection policies, are also examined. Finally, the presentation addresses different methods of taxation relevant to the hospitality industry, such as income tax, consumption tax, and corporation tax. The content aims to equip individuals with the knowledge to work efficiently and effectively in the organization and make better decisions in the future.

HOSPITALITY
MANAGEMENT
Student’s Name

OVERVIEW OF PRESENTATION
 The presentation would brief about the
following topics:
 Cost
 Cost categorization
 Pricing mechanism for products and services
 Methods of controlling stock
 Methods of controlling cash
 Different methods of taxation

COST
 Cost is the total amount which has been
occurred in an organization while preparing a
particular product. Cost is usually a monetary
valuation of:
 Efforts
 Resources
 Material
 Risk occurred
 Time consumed
 Utilities consumed etc.

COST CATEGORIZATION
 The categorization of cost assists an
organization to group the total expenses
together and examine that how much
amount has been spent to produce a
particular item.
 Cost categorization makes it easy for the
organization to make decisions, set the
prices for products and services, reviewing
financial performance and financial planning.

CONTINUOUS
Mainly cost could be categorized into following
dimensions:
 Fixed cost
 Variable cost
 Semi variable cost
 Direct cost
 Indirect cost
 Relevant cost
 Sunk cost

CONTINUOUS
Fixed cost: the cost which is not affected with
the total number of goods manufactured or
number of services.
Variable cost: the cost which get change with
the slight change in the production volume.
Semi variable cost: the semi variable cost is
the mixture of fixed cost and variable cost

CONTINUOUS:
 Direct Cost: this cost could easily be traced to a
particular project or a product line.
 Indirect cost: this cost could by incurred for various
projects and it could not be easily attributed to a
particular project.
 Relevant cost: this is the future expenses which
would be incurred in the case of sales opportunities
are pursued.
 Sunk Cost: this is the existing expenses which would
be incurred regardless whether the sales are pursed
or not.

PRICING MECHANISM
 Pricing mechanism is the way in which the
prices of services and the products are
determined by the management of the
company.
 Price mechanism is the result of market force
of supply and demand.
 Price mechanism is a complex way to explain
that how the buyers could match the sellers
through price.

CONTINUOUS
 Basically, two broad category is there is
categorize the price mechanism:
 Fixed pricing: in this prices are evaluated
before selling the products which is based on
more static variables.
 Variable pricing: the prices of the products
are changed according to the market
conditions and the changes in the
environment.

CONTINUOUS
 Fixed pricing:
Fixed pricing
Feature depend pricing
Customer segment dependent pricing
Volume dependent pricing

CONTINUOUS
 Variable pricing:
Bargaining
Yield management pricing
Real time market pricing
Auctions

METHODS OF CONTROLLING STOCK
 Stock control is a process in which
appropriate stock is maintained by an
organization to be capable to accomplish all
the demand of the customers without making
any delay.
 And at the same time stock is controlled by
the companies to keep a track on the cost
which is associated with the minimum cost of
the company.