Accounting, Purchasing & Cost Control

Main Topics of Study:

Financial Position:

  • Exchange & Value
  • Capital
  • Financial Position
  • Separate Entity
  • Assets & Liabilities
  • The Balance Sheet
  • Types of Assets & Liabilities

Types of Financial Transaction:

  • Transactions & the Balance Sheet
  • The Duality of Transactions & the Money Measurement Concept
  • Profit Defined
  • Types of Expenditure: the Capital/Revenue Distinction
  • Generic Types of Transaction

Recording, Processing & Correcting Financial Transactions:

  • The Double-entry System
  • Periodic Balancing of the Books
  • The Trial Balance
  • Types of Error
  • The Correction of Errors

Preparing the Final Accounts:

  • Calculating Profitability
  • The Trading & Profit & Loss Account
  • The Accruals Concept
  • The Balance Sheet

Accounting for Fixed Assets:

  • Definition of Fixed Assets
  • Depreciation of Fixed Assets
  • Depreciation & the Accruals Concept
  • Methods of Depreciation
  • Recording, Processing & Reporting Depreciation in the Accounts
  • Accounting for the Acquisition & Disposal of Fixed Assets
  • The Consistency Concept
  • Intangible Fixed Assets

Accounting for Stocks:

  • Types of Stock
  • Stock Valuation & Profitability
  • Control & Verification of Purchasing & Receiving
  • Stock Control Systems
  • Stock Valuation When Input Prices are Changing

Accounting for Credit Transactions:

  • Cash & Credit Transactions
  • Debtors & Creditors
  • Reconciliation of Statements & Ledger Accounts
  • Credit Control
  • Provision for Bad Debts
  • Accounting, Purchasing & Cost Control

Accounting for Cash:

  • The Importance of Cash Management
  • The Cash Book
  • Bank Reconciliations
  • Till & Takings Management
  • Credit Cards
  • The Petty Cash System
  • Foreign Currency Exchange
  • Ticket Systems for Cash Sales
  • Introduction to Cash Flow Statement
  • Cash & the Accruals Concept

Accounting for Employees:

  • The Significance of Employee Costs in HTL Businesses
  • Remuneration Methods
  • The Payroll System
  • Accounting for Employment Costs
  • Reporting Employee Costs

Accounting for VAT:

  • The Principles of VAT
  • Rates & Scope of VAT
  • Calculating VAT Liability
  • Completing a VAT Return & Paying VAT
  • Accounting for VAT
  • The Mechanics of VAT for Tour Operators & Travel Agents

Accounting for Recreation & Leisure Clubs:

  • Types of Recreation & Leisure Clubs
  • The Distinction Between Clubs & Commercial Organisations
  • Sourcing of Income for Recreation & Leisure Clubs
  • Measuring & Reporting Income & Expenditure
  • Preparation of Final Accounts & Notes

Accounting for Multiple Ownership:

  • The Partnership Agreement
  • The Appropriation of Profit
  • Changes to the Partnership
  • Partnership Dissolution & Conversion
  • Distinctive Features of Limited Companies
  • The Final Accounts of Limited Companies
  • Corporate Capital Structure

Costing a Product or Service:

  • Expenses & Costs
  • Cost Control & Organisational Structure
  • The Three Main Components of Cost
  • Calculating the Direct Material Cost
  • Calculating the Direct Labour Cost
  • Allocation & Apportionment of Overhead Costs
  • Calculating the Total Cost of a Product in a Multiproduct, Multidepartmental Business
  • Accounting, Purchasing & Cost Control

Pricing a Product or Service:

  • Pricing Based on Cost Data
  • Pricing Decisions Based on Market Conditions
  • Pricing to Optimize Profit Using Cost & Market Information
  • Pricing Strategies in Special Situations

Accounting for Contribution:

  • The Behaviour of Cost & Revenue Against Output
  • Break-even Analysis
  • Contribution Theory
  • The Contribution/Sales Ratio
  • Evaluating Business Alternatives
  • Contribution Theory & Product-mix Decisions
  • Profit Maximization Where Resources are Limited
  • Make-or-Buy Decisions

Planning & Budgeting:

  • Strategic Planning
  • The Annual Planning Cycle
  • Preparing Individual Budgets
  • Cash Budgets
  • Master Budgets
  • Behavioural Aspects of Planning & Budgeting

Standard Costing & Flexible Budgeting:

  • Monitoring Performance Against Plans & Budgets
  • Responsibility for Variances
  • Flexible Budgets
  • A Standard Costing System
  • Calculation of Individual Variances
  • The Profit Reconciliation System
  • The Variance Analysis Report

Accounting for Capital Investment Decisions:

  • The Long-term Objectives of a Business
  • Capital Investment
  • Collecting Data for Project Evaluation
  • Evaluating Capital Investment Projects
  • Pros & Cons of the Four Methods
  • Qualitative Factors in Capital Investment Decisions

Interpretation & Assessment of Financial Information:

  • Ratios & Comparative Analysis
  • Gross & Net Profit Margins
  • Primary Performance Ratios
  • Return on Capital Employed (ROCE)
  • Liquidity Ratios
  • Working Capital Efficiency Ratios
  • Efficiency Ratios for the Hotel Industry
  • Capital Structure & the Risk-Return Relationship
  • Cost-Volume-Profit Ratios
  • Value-added Ratios
  • Other Value-added Ratios
  • Weaknesses of Ratio Analysis
  • Accounting, Purchasing & Cost Control

Spreadsheet Applications in Accounting:

  • The Value of Spreadsheets
  • Common Commands & Functions
  • Preparing the Final Accounts of a Theatre
  • Preparing a Product Cost Structure
  • Pricing Rooms Using the Hubbart Formula
  • Graphing the Revenue & Cost Functions of a Travel Agency
  • Graphing a Break-even Chart
  • Preparing a Cash Budget
  • Examining Alternative Purchase Options
  • Comparing Two Hotels in Two Different Market Sectors