BHOS414E
Cost Control in Hospitality

MQF Level: 6

ECTS Value: 4 ECTS

Self Study Hours: 48

Contact Hours: 20

Assessment Hours: 32

 

Overall Objectives and Outcomes

This module is intended to equip the course participants with adequate knowledge and skills related to business calculations, procurement and inventory control. The module shall focus on administering effective materials control in line to cost efficiency, logistics and production planning. The content is adapted to assist prospective educators of hospitality in the delivering topics related to planning and procurement, storing, receiving and issuing of materials from a hospitality perspective. Emphasis throughout the course is intended to address effective cost efficiency, forecasting, monitoring and attaining targeted budgets of production control to satisfy the outcome of an organization with the use of AI and latest technologies. Furthermore, this module will discuss the core pedagogical techniques pertaining to the teaching of Cost control in Hospitality and the available learning resources that made the teaching of this subject relevant to students.

By the end of this module, the learner will be able to:

Competences

  • Develop a comprehensive understanding of effective cost control within a hospitality environment and evaluate how adequate planning of such an activity may increase the feasability of a hospitality organisation;
  • Critically analyse how proper procedures when dealing with capacity and invvoatory managmentcan lead to a better financial management;
  • Critically review the role of reporting, forecasting and reccomednations within the financial department of a hospitality organisation and develop a comprehensive understanding of the importance of procurement procedures, inventory control and trading accounts.

Knowledge 

  • Apprehend different methods of purchasing and explain the concept of Standard Purchase Specification;
  • Identify the correct purchasing procedures while recognisig the movement of stock;
  • Understands the concepts of Inventory Control and how does this relate to the Economic Order Quantity factor;
  • Identify the Trading account and discuss the importance of the Profit and loss account, budgeting and projections.

Skills

  • Follow the right procedures to carry out effective costings and cost control.
  • Develop effective projections, monitor and attain targeted budgets in line to costs.
  • Apply the correct financial terminology used in the industry.
  • Apply cost control strategies to mitigiate and minimise the effects of these elements of profitability;
  • Convey the relevant information about purchasing and cost control to students in the most effecient and effective way;

 

Assessment Methods

This module will be assessed through: One case study Individual Assignment

Suggested Readings

Core Reading List

  1. Coltman, M.M. 1989. Cost control for the hospitality industry (2nd Edition). Van Nostrand Reinhold.
  2. DeFranco, A.L. and Noriega, P.B. 2000. Cost control in the hospitality industry. Prentice Hall.
  3. Dopson, L.R. and Haley, D.K 2015. Food and Beverage Cost Control. John Wiley and Sons Ltd.
  4. Lea R. Dopson, ‎David K. Hayes. 2016. Food and Beverage Cost Control 6th Wiley & Sons.
  5. National Restaurants Association. 2012. Controlling Foodservice Costs. Pearson Education.
  6. Wood, F. and Lightowers, P. 1985. Purchasing, Costing and Finance in the Hotel and Catering industry. Longman Scientific and Tech.

Supplementary Reading List

  1. Ogbeide, G., 2013. Revenue Management, Cost Control and Financial Analysis in the Hospitality Industry. Cognella Academic Publsihing.
  2. Tarun, B., 2016. Food and Beverage: Operations to Management. I.K. International.
  3. Vinod, B., 2022. Revenue Management in the Lodging Industry (Hospitality). Springer International Publishing.
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