Beruflich Dokumente
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SESSION 2
HOTEL COST CONTROL
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3. ADMINISTRATIVE & GENERALS The costs to keep a company run. General and administrative costs are indirect costs and exclude the costs incurred from factory processes central to the creation of a product. Reported on the income statement, it is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company. Direct selling expenses are expenses that can be directly linked to the sale of a specific unit such as credit, warranty and advertising expenses. Indirect selling expenses are expenses which cannot be directly linked to the sale of a specific unit, but which are proportionally allocated to all units sold during a certain period, such as telephone, interest and postal charges. General and administrative expenses include salaries of nonsales personnel (GM, Comptroller, Resident Manager, rent (vehicles), heat and lights (POMEC?).
Occupation cost: Are the whole life costs of buildings and their associated land from occupancy until disposal. These costs may be incurred on a regular or irregular basis. This related to occupying a space including; rent, taxes, personal property taxes, insurance on building and contents, depreciation and amortization expenses (Fixed Costs).
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Materials Materials
Materials
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Is the process whereby management attempts to regulate costs and guard against excessive costs. MCC
As a management tool to control or to monitor costs which are occurred in Room operations
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Food
Enterta inment
HOTEL
Beve rage
Space Rental
Laun dry
Mice
Hotel Cost Control MATERIAL COST CONTROL 2. Products or services created or produced using costs and expenses.
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Why Costs and Expenses to be controlled? Why they should attempts to regulate properly?
BUSINESS PRINCIPLE = ECONOMIC REASONS To maximize revenues as well as profit To minimize Cost and Expenses
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Caused of
Un proper Storage
Not match Price Un proper process
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Purchasing
Selling
Receiving
Processing
Storing
Issuing
Un proper process
Not match Price
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Chapters Objective:
After having this chapter all students could identify the role of Material Coat Control in a hotel and able to distinguish 3 prime costs which appear in Rooms Operation.
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Cost control adalah kegiatan/proses yang dilakukan pimpinan (supervisors, Deparment Heads, Managers, General Manager) untuk mengendalikan dan menjaga peningkatan biaya.
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Every managers must take care this matters. Rooms Manager is the only person who responsible to control cost occurred of his/her department.
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The purchasing process, even in small establishments, is not just a matter of going to the market or ringing a supplier when food, beverage and other stock items need to be replenished. In fact, the process involves systems and documents that control how purchasing is conducted.
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Controls are needed because the costs associated with purchases run at about 30% of turnover (turnover is the total amount of the
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It would be tempting to think that losing a few thousand dollars through wastage, breakage or theft of stock would
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So if over the year re-purchases of stock amounted to $12,000, all the profit potentially available to this establishment would be lost. To consider this a different way, we could say a total expenditure on stock of $112,000 (normal expenditure and repurchases) means that re-purchase costs will be about 10.5% of total purchases, ($12,000 / $112,000 x 100). That is, if stock losses amount to about 10.5% of the profit of any normal hospitality establishment running at 4% profit, profit will be completely wiped out.
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Any controls that can reduce or minimize stock losses will have a direct $ for $ impact on profit.
In this subject we will look in detail at the purchasing process, the controls that are used and the way these controls help ensure stock losses are minimized.
Purchase-Debit Note
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Purchase-CN
Test Yourself 1
If you owned a hospitality establishment what % loss of stock do you think would be acceptable to you? Explain. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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Key points
Ensuring stock is not lost through wastage or theft is an
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The diagram below is an example of what a purchasing system might look like in an establishment that has strict rules set up with regard to how the purchasing process is to be carried out. The diagram works like a flow chart and shows the movement of information between hotel departments and major parts of the purchasing department. Note the use of specific documents in each part of the process.
Figure 1 Overview of activities and information flow between a hotel department and the Stores and Purchasing Department
This regulates the functions of purchasing, receiving, storage and issue of stock.
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SELLING
PROCESS ING
STORING
ISSUING
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GM
COST CONTROL
SUPPLIERS
PR PR
PR
QAP
QAP
Approval
Approval
PO PO
PO PO
Notes: PR = Purchase Requisition QAP = Quotation Analysis Price PO = Purchase Order A = Arsip
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Key points
Controls systems associated with purchasing and storage use documents such as: Requisition Forms Purchase Requisitions Purchase Orders
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The
diagram
below
shows
the
interactions
between
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control
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As each department uses stock items, it keeps a record of usage; so that when stock levels get down to a pre-determined amount, a process to re-order the required stock is carried out.
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To ensure these procedures are followed, each department has particular people who are responsible for:
Recording usage Writing out requisitions Taking delivery of stock items from the store.
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This process is part of each departments individual stock control process and interacts with the overall purchasing and control process of the establishment.
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For example, if you were employed as a bar attendant in a large international hotel, at the end of each shift you may be required to count the number of empty (and broken) bottles or cans of beer, wine, spirit etc. You may also be required to count or measure the stocks remaining in the bar. At the same time the bar manager may obtain a print out from the computerized point of sale system or the cash register.
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Hotel Cost Control For example, if you were employed as a bar attendant in a large international hotel, at the end of each shift you may be required to
To count empty bottle/cans At the end of Shift To count stock remaining Computer print out
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Test Yourself 2
Counts of bottles and cans, and taking note of how much liquor and post mix is left will enable the bar manager to determine how much needs to be re-ordered before the next shift. Why do you think the bar manager would also check the records of sales to determine the amount used? Explain. ----------------------------------------------------------------------------------------------------------------------------------------------------mikeyahyayoenoes@yahoo.com
Another example of recording usage would be if you worked in the Housekeeping Department of the hotel. As a room attendant one of your duties would be the cleaning of guest rooms after guests have checked-out. To carry out this duty you would use chemicals to clean all of the surfaces; you would replace all dirty linen and towels with clean ones; you might check the mini-bar usage; and you would definitely replace the guest supply items such as shampoo, conditioner, bath gel, shower cap and shoe shine.
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