Finance in the Hospitality Industry
CHAPTER
OVERVIEW
Hospitality is one of the world’s most exciting and rewarding industries. If you choose it for your career, you will select from a wide variety of employers, locations, and daily job activities that can lead to your success and personal satisfaction. In this chapter, you will review some important ways in which the hospitality industry is unique. You will also learn the definition of accounting and how accounting helps managers like you use financial information to make good decisions. As you learn that there are several specialty areas (called branches) within accounting, it will become clear to you and you will understand why knowing about hospitality managerial accounting, the specialty area of accounting examined in this text, will help you improve the operating effectiveness of any restaurant, hotel, club, bar, or institutional facility you manage. Finally, you will learn about some of the important ethical responsibilities you will assume when you apply managerial accounting principles to the hospitality business you are responsible for managing.
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Hospitality Industry Accounting
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C H A P T E R 1 Hospitality Industry Accounting
CHAPTER OUTLINE
Unique Aspects of the Hospitality Industry The Purpose of Accounting in the Hospitality Industry Branches of Accounting Why Hospitality Managers Use Managerial Accounting The Uniform System of Accounts Ethics and Hospitality Accounting The Blue Lagoon Water Park Resort: A Case Study Can You Do the Math? Apply What You Have Learned Key Terms and Concepts Test Your Skills
LEARNING OUTCOMES
At the conclusion of this chapter, you will be able to: ✓ Explain the primary purpose of accounting and each of the five branches of accounting. ✓ Explain why managerial accounting in the hospitality industry is different from managerial accounting used in other industries. ✓ Recognize the Uniform Systems of Accounts appropriate for the
OVERVIEW
Hospitality is one of the world’s most exciting and rewarding industries. If you choose it for your career, you will select from a wide variety of employers, locations, and daily job activities that can lead to your success and personal satisfaction. In this chapter, you will review some important ways in which the hospitality industry is unique. You will also learn the definition of accounting and how accounting helps managers like you use financial information to make good decisions. As you learn that there are several specialty areas (called branches) within accounting, it will become clear to you and you will understand why knowing about hospitality managerial accounting, the specialty area of accounting examined in this text, will help you improve the operating effectiveness of any restaurant, hotel, club, bar, or institutional facility you manage. Finally, you will learn about some of the important ethical responsibilities you will assume when you apply managerial accounting principles to the hospitality business you are responsible for managing.
CO
PY R
IG
HT
ED
MA
TE
Hospitality Industry Accounting
1
RI
AL
3
4
C H A P T E R 1 Hospitality Industry Accounting
CHAPTER OUTLINE
Unique Aspects of the Hospitality Industry The Purpose of Accounting in the Hospitality Industry Branches of Accounting Why Hospitality Managers Use Managerial Accounting The Uniform System of Accounts Ethics and Hospitality Accounting The Blue Lagoon Water Park Resort: A Case Study Can You Do the Math? Apply What You Have Learned Key Terms and Concepts Test Your Skills
LEARNING OUTCOMES
At the conclusion of this chapter, you will be able to: ✓ Explain the primary purpose of accounting and each of the five branches of accounting. ✓ Explain why managerial accounting in the hospitality industry is different from managerial accounting used in other industries. ✓ Recognize the Uniform Systems of Accounts appropriate for the