Assignment 3 Review Questions for Accounting and Financial Analysis in the Hospitality Industry

Financial Analysis in Hotels
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Financial Analysis in Hotels
Various organizations have organizational structures that make them distinct from one another. As for the hotel industry, one key part of management is the Executive Committee. The committee is comprised of different top-level managers representing various departments. An examination of the organizational chart reveals that the Executive Committee is made up of Finance Director, Marketing Director, and Human Resources Director. The Finance Director is in charge of all the financial activities relating to the hotel. The Finance Director ensures accuracy and conformity of the accounts to the Generally Accepted Accounting Principles (Hales, 2006). The Marketing Director is responsible for all marketing activities for the hotel whereas the Human Resources Director is responsible for the management of employees.
There are various ways to measure labor productivity. Relating to both fixed and variable wage expenses, labor productivity can be maintained in such a way that the expenses incurred translates to the productivity standards desired. The most key productivity measure is in terms of labor hours for every room occupied. This measure can be utilized to determine the exact amount of input that results in an ideal output. The amount of expenses incurred in wages should contribute to a reasonable output.
One element of hotel accounts is weekly revenue reports. Weekly revenue reports are utilized in such a way that they plan for the upcoming week’s expenses.

From the forecast obtained in terms of weekly revenues, certain expenses can be planned ahead of the coming week. From the week’s forecast, wages for the forthcoming week can be planned in advance according to the forecast. Apart the wages, certain operations and hours can be allocated according to the forecast for ease in the week to come.
References
Hales, J. A. (2006). Accounting and financial analysis in the hospitality industry. London: Routledge.