Revenue Mgt Literature Review

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Analysing the effects of cost control systems surrounding food and ...
This proposal is on “Food and Beverage cost control”, within the Plaza Hotel Curaçao. It provides an in-depth look into the cost control systems surrounding food and beverage service of the hotel. Within the hospitality industry the food and beverage department in a hotel is one of the departments that generate the enormous revenues. According to the National Restaurant association report in Restaurant Industry Operation, 1995, food and beverage cost range are as follows”:

Foods cost range: 26.5% - 42.5% *

Beverage Cost Range: 21.0% - 44.1% *

(*) Keeping in mind that these figures may differ depending on the food and beverage operation.
Having extreme high cost control percentage means; that there is a disruption within the relationship between the most important key players contributing to the cost control system. The result is that the cost of generating a dollar become more than its value. This will ultimately lead to failure.

The aim of this study is to research the importance of food and beverage cost to the Plaza Hotel Curaçao and how the existence of the food and beverage cost calculation will influence the food and beverage cost percentage, which finally will end up in the company’s revenue. The problem statement is:”in what way The Plaza Hotel Curaçao Food and Beverage is controlled and provides recommendations in order to manage cost in a proper way more effective and efficiently”.

This proposal starts with the background on managerial accounting which is the root of where cost accounting is derived from. Followed by the literature research in which theories and methods of different authors on the topic of food and beverage cost control are described. The forth chapter is the introduction of the company in question. The fifth chapter is the search in which is discussed the goal, the problem statement, the research question and the delimitations of this study. The sixth chapter is the research model which is chosen to be followed in order to conduct this research. The seventh chapter is the research methodology which states the methods used to conduct this study. The last chapter is the structural outline of the research.

1.1. The Background Information

§ 1.1.1 the rise

The earliest documentation of accounting date back to about 3500 B.C., when ancient Egyptian and Sumerian businessmen recorded agricultural production, tax collection, and storehouse inventories. The Greek and Romans are also linked to the more advance of accounting practice by applying the method of property depreciation. The middle ages (the period of European history approximately a millennium from the 5th century through to the 16th century) allowed accounting practices to advance significantly via emphasis on arithmetic and writing in commercial trade. The necessity for the creation of performance measurement methods to help bankers and investors rate the success of failure of business ventures during the renaissance lead the first advanced accounting procedures developed; that accounted for interest, depreciation, fixed assets, inventory turnover and other factors that still represent the essence of managerial accounting practices.

Managerial accounting continue to emerge during the Industrial revolution of the 19th century, it was relatively sophisticated and provided the essential information needed to manage the early large scale production of textile, steel and other products. In this time period the nature of business activity was changing due to technological challenges and extremely competitive business environment. The systems used by business before the scientific management movement was not adequate to handle these changes and need to be re-examine in order to match the demand on the cost accounting and management control procedures. The goal of the scientific management engineers was to improve the efficiency and utilization...
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