Bethlehem University

Faculty of Business Administration

"Annual income twenty pounds, annual expenditure nineteen-nineteen and six,
result happiness. Annual income twenty pounds, annual expenditure twenty pounds
ought and six, result misery."
Charles Dickens, David
Copperfield, 1849

Managerial Accounting for the Hospitality Industry- HOTM407

Course Outline – Spring 2019

Instructor: Mr. Marsail Al Selwadi
Office: M-206
Office Hours: Mon/ We. 10:45–11:30.
Office Telephone: 274-1241 Ext.
E-mail: [email protected]

Course Description:

This course focuses on how accounting principles apply directly to hospitality management, offering
students skills in managerial accounting that are fundamental in the hospitality industry. The material of
the course integrates both theoretical and practical knowledge while attempting to provide students with
useful tools that can be used to better understand and perform managerial accounting functions in the
hospitality industry.

Course Competencies & Objectives:

Upon the completion of this course, students are expected to be able to begin

➢ 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.

➢ Explain the basic accounting formula and how it is modified using debits and credits.

➢ State the purpose of regularly preparing an income statement for a hospitality business; explain
the way managers and accountants actually prepare an income statement; and analyze an income
statement to improve the operation of your own business.

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 ➢ State the purpose of regularly preparing a balance sheet for a hospitality business; explain the
way managers and accountants actually prepare a balance sheet; and analyze a balance sheet to
better understand the financial condition of your own business.

➢ State the reason cash flows are critical to the operation of a successful business.

➢ State the purpose and value of calculating and using ratios to analyze the health a hospitality
business.

Advices & Tips for Effective Study in this Course:

You as a University students face a lot of barrier and I believe these tips will help you in breaking these
barriers and lead to a higher success level in university. Please be aware that these are personal
suggestions that you may or may not follow:

➢ Always scan the material that we will cover in the next class. And after we cover it read it
carefully.

➢ Take good notes most of you did not get this skill in high school but trust me this is one of the
most important advices you will get in university “Anything the instructor writes on the board or
say in the class should appear in your notes”.

➢ Be involved in your classes. Do not simply pretend you are a sponge, ready to soak up whatever
the instructor says. You are here to learn, not to be taught.

➢ Always do your assignments by yourself don’t copy it and if you decide to copy it please try to
understand what you are copying! Trust me this will help you a lot when you study for your
exams. Finally don't leave assignments until the day before they are due.

Student’s Responsibilities:
➢ Attendance: attendance is required, because it is a critical component in mastering the material,
so every student is expected to attend classes regularly. However, if a student decided not to
attend a class, then it is his/ her responsibility to obtain the lecture notes, and please be aware of
what is required in the next class.\

➢ Participation - This course will rely heavily on individual participation in class discussions.
There will be brief discussion of each chapter in the text intended as preparation for the weekly
exams. The bulk of in-class work will be active discussion of cases offered. The instructor
reserves the right to include case analysis projects into the class. Case Analysis teams may be
formed and each team will be assigned cases from the text or other sources for detailed analysis.
Teams will present each case and act as facilitators for the discussion.

➢ Professionalism – Part of your course grade will be determined by your professionalism. The
class’s collective learning depends critically on the professionalism with which the course is
approached. Please approach the course in a professional manner. Treat this course the same way
you would a works assignment, and treat your classmates and the Instructor as you would your
professional colleagues. Think of each class session as an important business meeting, intending
to be on time and always well prepared.

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 ➢ Classroom Conduct: Students are expected to demonstrate classroom etiquette based on the
following principles:

I. Attendance: Students are expected to attend every class throughout the term. When
unable to attend, the student should notify the professor in advance.

II. Punctuality: Students are expected to arrive for class on time so that the professor may
start and end the class according to schedule.

III. Exiting and Entering: Students are expected to remain in the classroom for the duration
of the class. If a student must depart early due to unavoidable circumstances, the
student should inform the instructor before class. Leaving and re-entering the class is not
permitted except in the event of an emergency.

IV. Disruptive Behavior: Students should demonstrate respect for the instructor and fellow
students during the class period. Students, therefore, should refrain from distracting
behavior such as holding side conversations, disruptive eating, using cell phones to send
text messages, surf the Web or check e-mail.

Learning Resources

The recommended textbook is Dopson, L. & Hayes, D. (2009). Managerial Accounting for the
Hospitality Industry. Hoboken, NJ: John Wiley & Sons, Inc. .

It is highly recommended that you purchase this e-text (also available in print form) as it will be
referred to and used extensively throughout the course. Lecture notes and further readings will
also be posted to your emails. Please download them yourself. In the lecture notes, you will find
recommended problems from the 2nd edition of your textbook. They are designed to test and
reinforce your understanding of the materials covered in the lectures. You are strongly
encouraged to try to solve the problems before checking solutions which we will do it together in
the class.

Grading & Grading Scale:

Your final grade will be based on the following tentative criteria:

Homework Assignments/Quizzes 20%

Participation / Attendance 10%
First Exam 20%
Second Exam 20%
Final Exam 30%
Possible Total 100%

➢ Exams & Quizzes: Each student should inform me –in advance-, if he/ she is planning to miss any
of these exams for a VALID & LEGITIMATE reason (e.g., imprisonment, verified illness, etc.).
In this case, the student will sit for a comprehensive exam at the end of the semester. Therefore,
if the reason for missing the exam is not a valid one, then he/ she will get a ZERO in that exam.
Quizzes are given in the week assigned. No makeup is given for any of the quizzes.

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 ➢ Assignments and Quizes: All students must submit all their Assignments at the beginning of the
class on the due date and therefore any late assignment is unacceptable under any circumstances.
If students submit all assignments there will be no need for quizzes, in this scenario student will
take full mark in this part. However, if I noticed that students are failing in submitting their
assignments there will be quizzes with the same assignment questions for that day.

➢ Final Exam: the final exam will be a comprehensive exam, which means that it will cover all the
lectures from the beginning until the end of the semester, and all students must take the exam on
the exact time and date. However, if you missed the final exam for VALID & LEGITIMATE
reason (e.g., imprisonment, verified illness, etc.) then you may be given an incomplete (I) grade,
that is to be removed later. The Chair and the Dean will be the final judge in these cases.

➢ Final Grade: Do NOT expect any “gift pass grade” under any circumstances (e.g., retaking
the class, lose you scholarship, will not be enlisted as a Dean/ Honor…etc.). Therefore, your final
grade is determined by your work throughout the entire semester and the following grading scale.
However, if you feel that your final grade is questionable, you have the right to appeal directly to
the Chair person or the Dean, and they will be the final judge in these cases.

Grading Scale:
90% and over A 70% - 74% C
85% - 89% B+ 65% - 69% D+
80% - 84% B 60% - 64% D
75% - 79% C+ Below 60% F

In-class PowerPoint Slides:

The presentations shown in class are often those provided by the text publisher that I have revised
substantially. Similar versions are often available on the CD that came with the text or on the text related
website. The PowerPoint slides presented in class are the instructor’s notes; they should not serve as
yours. Typically, they are absolutely insufficient sources of information. Therefore, please do not become
“PowerPoint Dependent.” as they are merely an outline for teaching, not content-laden sources of
information. Thus, you should always use them as supplements, not as substitutes for attending class,
paying attention in class, taking notes, reading the text, etc. The instructor’s failure to post PowerPoint
presentations, if posted at all, should not become the student’s excuse for not being prepared for various
aspects of the course.

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Tentative course topics schedule:
The following is a TENTATIVE, AMBITIOUS list of the topics that will be covered in the course. The
required readings are listed under each topic. Additional required and supplementary readings will be
provided later.

The following is a tentative, ambitious list of the topics that will be covered in the course. The required
readings are listed under each topic. Additional required and supplementary readings will be provided
later.

Topic Reading
Ch1: Hospitality Industry Accounting
Chapter One
Ch2: Accounting Fundamentals Review
Chapter Two
Ch3: Income Statement
Chapter Three
Ch4: Balance Sheet
Chapter Four

First Hour Exam

Ch5: Statement of Cash Flows Chapter Five
Ch6: Ratio Analysis Chapter Six

Second Hour Exam

Ch7: Food and Beverage Pricing Chapter Seven
Ch8: Revenue Management for Hotels Chapter Eight
Ch9: Managerial Accounting for cost Chapter Nine

Final Exam (comprehensive)

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