Accounting the basic quiz Flashcards
ADR
Total Rooms revenue/rooms sold
RevPar
ADR x Occupancy
Productivity
Performance measurement for staffing levels. operations departments measures productivity based on Ocuppied rooms or covers, staffing changesare based on business demand, and Admin departments measure productivity based on a fixed schedule
Cost of sales
Any item whose cost is associated with revenue,any item bought for resale to a guest or group. I,e, banquet rentals
Controllables
A purchase or expense for internal hotel( not for resale) i,e, pencils
Benefits
Marriott benefit costs including medical, dental, PTO as it is accrued, taxes
on the P&Lbenefits includes employee relations cost
cafeteria allocation
Deducts
also called support costs. support the general hotel operations. pure expense department-no sales are generated. G&A, accounting, utilities, engineering, accidents, sales
profit
revenue- expenses
house profit
total sales minus department expenses minus support costs
total hotel’s operational profit
BMF
Base management fee paid to management company each month
Ff&E Escrow
contribution made each period into a fund for capitalk expenditures
other deduction
building fire insurance, lease expense and licenses, real eastate taxes
NOI
Net house profit
amount paid to the owners after BMP,FF&E & other deductions have been deducted from house profit
Coding
revenue. cost of sales. wages. benefits. controllables. marketing. statistical
Why is coding important
Critique purposes/understanding our spending
Budgeting
remember what expenses should be accounted for in future years
accruals- why do them
revenue recognition principles- revenue should always match expenses
ensure that P&Ls are stated properly -correct profit margins
account for all invoices each period so they are not carried over in a different year
How do I calculate HPOR OR HPC BASIS?
Budgeted hours divided by budgetor coversed occupied rooms
How do I manage it on a weekly basis?
calculate budgeted productivity rate for the period
divide totsl hours/total occ rooms or covers from your budger
if on fixed productivity, divide total budgeted hours by 4 weeks
get forcasted occupied rooms or covers at staff meeting and via email
Budgeted productivity rate x forecasted volume = total hours that you can use next week to in line with budget
Step 3: calculate total hours
Total occupied rooms= 742
Budgeted productivity rate= 0.480 HPOR
742 X 0.480= 356 HOURS
The housekeeping manager can schedule housekeepers for 356 hours for the week ti achieve budgeted productivity
