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1 Programme: BSc in International Hospitality Management ASc in International Hospitality Operations Course Title: Principles of Internal Control Course Code: ACNT201 Credit hours: 3 Prerequisite/s: ACNT101 Co-requisite/s: Nil Lecturer/s: Dr Ilhan Demirer Tel Ext: 5033 Lecturer s address: Course Rationale and Description: Students would have taken from ACNT 101 a confidence in their ability with figures and knowledge of the concepts of accrual accounting, together with an understanding of the work carried out by bookkeepers and accountants in producing a true and fair view of a hospitality unit s (ie. restaurant) financial performance. The need now is to apply this basic financial knowledge in an operational managerial decision-making context. Teaching and Learning Philosophy: Figures for an operational manager in hotels and restaurants are to be used to help make decisions that will increase the financial contribution that operations make towards satisfying the aspirations of investors. Students need to adopt a questioning approach to their studies why is this topic of importance to the job of an operational manager in his/her daily decision making? Students therefore need to be able to explain the concepts and ideas of accounting in a managerial context. Contribution to Graduate Profile: 1. Students will gain an understanding of management accounting methodologies and principles. 2. Students will gain the ability to read and formulate decisions based on the manipulation of figures describing operational performance. 3. Students will learn the fundamental management accounting techniques to making decisions in a hospitality context at the unit level. Specific Learning Outcomes Knowledge: Upon completion of this course, students will know how to: LO 1. Demonstrate satisfactory arithmetic and basic accounting skills. LO 2. Understand the format of basic Profit and Loss and Balance Sheets to aid decision making in a hospitality context. LO 3. Explain the purpose, principles and processes underpinning a Budgetary Control System in a hospitality context. LO 4. Produce Operating, Cash and Master Budgets in a hospitality context from given data. LO 5. Produce a basic analysis on variances between budgeted and actual operating financial performance in a hospitality context from given data. LO 6. Understand the function and behaviour of costs in a hospitality context in respect of calculating Break/Even and setting prices on a cost basis. ACNT Page 1

2 Skill Upon completion of this course, students will be able to demonstrate: LO 7. Satisfactory arithmetic and basic accounting skills. LO 8. Understand the format of basic Profit and Loss and Balance Sheets to aid decision making in a hospitality context. LO 9. Explain the purpose, principles and processes underpinning a Budgetary Control System in a hospitality context. LO 10. Produce Operating, Cash and Master Budgets in a hospitality context from given data. LO 11. Produce a basic analysis on variances between budgeted and actual operating financial performance in a hospitality context from given data. LO 12. Understand the function and behaviour of costs in a hospitality context in respect of calculating Break/Even and setting prices on a cost basis. Autonomy and Responsibility Competence Upon completion of this course, students will be able to state the following reporting, regulating or ethical considerations: LO 13. The fair and accurate creation of management accounting data for decision making. LO 14. Creating justifiable business decisions at the unit level in a hospitality context based on provided management accounting principles. Self-Development Competence Upon completion of this course, students will be able to demonstrate the need to continually research and update the following areas: LO 15. The format of financial statements for management accounting purposes. LO 16. Be aware of management accounting processes used in hospitality and tourism businesses. Role in Context Competence Upon completion of this course, students will be able to effectively contribute to the following activities or endeavours: LO 17. The creation and understanding of Financial Statements as they relate to Budgetary Control at unit level in a hospitality business. LO 18. The formulation of decisions based upon various Financial Statements. Transferable and Employment Skills SKILLS PRACTICED TAUGHT ASSESSED 1. Written Communication X X X 2. Verbal Communication 3. Commercial Awareness X 4. Problem Solving X X X 5. Networking 6. Planning and Organising 7. Numeracy X X X ACNT Page 2

3 8. Computer Literacy 9. Time Management X X 10. Research 11. Team Work 12. Leadership 13. Negotiating 14. Customer Service Weekly Content WEEK DATE TOPIC READING 1 14 APRIL Introduction & Financial Statement Analysis Vertical & Horizontal Analysis of Statements Chapter 1, 2, APRIL Inventory Costing Chapter APRIL Ratio Analysis Chapter MAY Ratio Analysis Chapter MAY Progress Test Review 14 MAY PROGRESS TEST 6 19 MAY Pricing Average Check & ADR 7 26 MAY Cost Management Cost-Volume-Profit Analysis Breakeven Analysis 8 2 JUNE Operations Budgeting Forecasting Revenues & Expenses 9 9 JUNE Operations Budgeting Variance Analysis JUNE Statement of Cash Flow & Cash Management Cash Budget JUNE REVISION WEEK JUNE FINAL EXAM WEEK Note: Schedule is subject to change. Chapter 6 Chapter 7 & 8 Chapter 9 Chapter 9 Chapter 10 & 11 Assessments, Weightings and Deadlines ACNT Page 3

4 QUIZZES & HOMEWORK - 30% There will be quizzes and homework in each class. Assesses learning outcomes: 1-18 PROGRESS TEST 30% Details of the progress test will be announced in the class. Assesses learning outcomes: 1-18 FINAL EXAM 40% Details for the final exam will be announced in the class. Assesses learning outcomes: 1-18 GRADING PERCENTAGE RANGE LETTER % % A % % A % % B % % B % % B % % C % % C % % FC % % FD 0 % % F LEARNING RESOURCES TEXTBOOKS: Jagels, M. G. (2007). Hospitality Management Accounting (9th ed.). Wiley, John & Sons, Inc.: New Jersey RECOMMENDED READING: Library Resources (Books) as advised. COURSE POLICIES ATTENDANCE: Attendance is very important in this course. Classes will begin promptly at the designated time and regular and punctual class attendance is expected. As stated in the EAHM Catalogue, students missing 3 classes will be withdrawn failed from the course. ASSIGNMENTS & QUIZZES: All assignments are due on the due date announced to the students. Unless mandated by circumstances, submissions will not be accepted. An assignment submitted later than the specified deadline will not be accepted and will receive a ACNT Page 4

5 zero score. No make-ups will be given for missed quizzes and homework. Students should contact the instructor if they have any problems with the assignments. ILLNESS AND DEATH NOTIFICATION: It is students responsibility to inform the instructor about their medical or other emergencies. Students should inform the instructor within 48 hours (if possible), validated with physician s note or other related document, which should be submitted to registrar s office. Students are responsible for making up for the course work and other learning activities during their absence. SPECIAL NEEDS: Any student who, because of a disability, may require special arrangements in order to meet the course requirements should contact the instructor as soon as possible to make any necessary arrangements. ACADEMIC INTEGRITY: It is the aim of the faculty of the Emirates Academy of Hospitality Management to foster a spirit of complete honesty and high standard of integrity. The attempt of students to present as their own any work not honestly performed is regarded by the faculty and administration as a most serious offense and renders the offenders liable to serious consequences, possibly suspension. Scholastic dishonesty includes, but it not limited to, cheating, plagiarism, collusion, falsifying academic records, misrepresenting facts, and any act designed to give unfair academic advantage to the student (such as, but not limited to, submission of essentially the same written assignment for two courses without the prior permission of the instructor) or the attempt to commit such an act. The EAHM policies on academic integrity, including cheating and plagiarism, will be strictly upheld in this class. CIVILITY STATEMENT Students are expected to assist in maintaining a classroom environment that is conducive to learning. Therefore, students are expected to respect the classroom and their classmates by: being on time, turning off their cell phones and computers, and not distracting others by: leaving the class early, doing homework, reading newspapers, chatting during the class, sleeping in the class, eating in the class, or in any way unnecessarily distracting fellow students from their purpose for being in class. Students should also respect the opinions of others, and use proper language. Guests are not allowed in the class. Inappropriate behaviours in the classroom shall result, minimally, in a request to leave class. DISCLAIMER The instructor reserves the right to amend or revise the course outline at any time during the semester. Any change will be announced in class. It is students responsibility to clarify the issue about the changes with the instructor. ACNT Page 5

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