Full Title:Economics and Management Accounting for the Hospitality Industry
Module Code:CLUN B7Z01
 
Credits: 5
Valid From:Semester 1 - 2014/15 ( September 2014 )
Module Delivered in 3 programme(s)
Module Description:Economics and Management Accounting is specifically designed to give Hospitality, Event and Culinary Management students an introduction to two important business skills, economic analysis and accoutancy for planning and control. The first part of the module explains how markets operate and why in certain circumstances, markets fail to produce the best outcome. The second part of the module considers how to interpret the management accounts of a business, how to control costs, set prices and appraise investment.
Learning Outcomes:
On successful completion of this module the learner should be able to
  1. Outline the basic micro-economic theories.
  2. Be aware of the relevance of economics for their industry.
  3. Identify and use key forecasting variables to develop projected financial statements for hospitality, tourism and leisure business entities and outline the factors to consider when forecasting these variables.
  4. Prepare forecast budgeted financial statements for organisations within the hospitality, tourism and leisure sectors and explain their usefulness for decision-making purposes.
  5. Describe how standard costing relates to budgetary control and variance analysis including calculating and evaluating variances based on standard costing data.
  6. Prepare, analyse and appraise key financial performance indicators under the headings of profitability and cost analysis, management efficiency and operations, liquidity and capital structure, focusing on key performance indicators for the hospitality, tourism and leisure sectors.
 

Module Content & Assessment

Indicative Content
The Basic Economic Problem
Scarcity, What, How and for Whom, The Production Possibility Frontier
Introduction to Economic Systems
Demand, Supply and Equilibrium, Elasticity.
Comparative analysis of macroeconomic data.
Analyse across countries and the implications for returns on investment.
Market Structures
Perfect competition amd monopoly Markets, Imperfect Competition, pricing strategies
The budgetary process.
Types of budgets, Motivational aspects, incremental and zero based budgeting,
Forecasting key variables, budgeting and decision-making.
Key variables, budgeting and decision-making.
Budgetary planning
Preparation of master budget Budgetary control - Fixed and flexible budgets Budgetary control - Variance analysis and interpretation Standard costing - variance analysis and interpretation
Variance analysis and interpretation
Standard costing - variance analysis and interpretation
Performance appraisal - benchmarking and interfirm comparisons
Performance appraisal - Preparation, analysis and interpretation of key management accounting performance indicators focusing on profitability and cost analysis ratios, management efficiency ratios, hospitality operating ratios, liquidity and gearing ratios.
Assessment Breakdown%
Course Work50.00%
End of Module Formal Examination50.00%

Full Time

Course Work
Assessment Type Assessment Description Outcome addressed % of total Marks Out Of Pass Marks Assessment Date Duration
Class Test The test will be held in week 6 and will examine Economics material covered. The test will consist of 30 multiple choice questions. 1,2,3 20.00 0 0 Week 6 0
Group Project You are to select a newspaper/magazine/web article for economic and financial analysis. The article must relate to one or more of the topics covered in the lecture program. The article must also have been recently written/published. You are to apply your economic and financial theory to explain and analyse the newspaper/media article. Theassig nment should be approximately 1400-1500 words in length and include well labelled diagrams. 1,2,3,5,6 30.00 0 0 Week 10 0
No Project
No Practical
End of Module Formal Examination
Assessment Type Assessment Description Outcome addressed % of total Marks Out Of Pass Marks Assessment Date Duration
Formal Exam n/a 1,2,3,4,5,6 50.00 0 0 End-of-Semester 0
Reassessment Requirement
A repeat examination
Reassessment of this module will consist of a repeat examination. It is possible that there will also be a requirement to be reassessed in a coursework element.

DKIT reserves the right to alter the nature and timings of assessment

 

Module Workload & Resources

Workload: Full Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture No Description 2.00 Every Week 2.00
Tutorial No Description 2.00 Every Week 2.00
Independent Study No Description 5.00 Every Week 5.00
Total Weekly Learner Workload 9.00
Total Weekly Contact Hours 4.00
This course has no Part Time workload.
Resources
Recommended Book Resources
  • A. Gillespie 2014, Foundations of economics, 3rd Ed., 1/E Oxford University Press, [ISBN: 978-019967487]
  • Chibili, M. 2010, Basic Management Accounting for the Hospitality Industry, Routledge, 2010 [ISBN: 978-9001796358]
  • O'Donoghue, D. & Luby, A., Management Accounting for the Hospitality, Tourism and Retail Sectors, 2006 Ed., Blackhall Publishing, 2006 [ISBN: 978-1842181140]
Supplementary Book Resources
  • Drury, C 2012, Management and Cost Accounting, 8th Ed., Cengage Learning, 2012, 8th Ed. [ISBN: 978-1408064313]
  • Sloman (2009) 2009, Sloman (2009) Essentials of economics,, 5/E Ed., Financial Times Prentice Hall; [ISBN: 978-0273722519]
This module does not have any article/paper resources
This module does not have any other resources

Module Delivered in

Programme Code Programme Semester Delivery
DK_BCULA_7 Bachelor of Arts in Culinary Arts 5 Mandatory
DK_BEVNT_7 Bachelor of Arts in Event Management 5 Elective
DK_BHPMG_7 Bachelor of Arts in Hospitality Management 5 Mandatory