CRN: 32212/ Section: 001

Hours: Monday, 2:10 – 5:00 p.m.

Instructor: Tim Shaw

Home Phone: 646 483 3008

Email: tshaw@ccsf.edu

Office Hours: Monday from noon – 2 for Facetime or Zoom meeting. Email on Canvas to set up a time outside that slot. Special review sessions can then be arranged before or after class at other times.

Textbook: You will need to purchase the $20.00 handbook, Understanding “The Numbers”: The Business of Hospitality, from the bookstore.

Course Objective: To provide hospitality students with a fundamental understanding of how to record and report transactions (i.e., “the numbers”) in the hospitality industry according to generally accepted accounting principles (GAAP), as well as, more importantly, how the underlying transaction costs and revenues can be analyzed and then used to control and manage hotel and restaurant operations. On completion of the course, the student will be able to:

A. Compare cash vs. accrual-basis accounting to prepare an Income Statement.

B. Utilize multiple analyses to interpret both restaurant and hotel rooms department operations.

C. Apply fixed and variable cost analysis to hospitality planning and decision making to help achieve profit objectives.

D. Summarize and distinguish between the major components of hotel and restaurant financial statements.

Course Description: This course, which used to be called “Hotel and Restaurant Accounting” has been changed to and better described as “Numbers for Hospitality” with more emphasis on understanding what “the numbers” mean and how they are applied in hotel and restaurant operations and, thereby, in achieving goals and making business decisions. The first eight weeks of the course will be used to understand, analyze, and prepare financial statements in accordance with GAAP, with special emphasis given to evaluating hotel and restaurant managerial performance by using pertinent ratios and analytical techniques commonly used in the hospitality

industry. The next four week period will look at restaurant and hotel accounting from a different managerial perspective and how “the numbers” can be rearranged in a different “contribution margin” format to assist managers in decision-making and planning for new business ventures, including calculation of breakeven points. The last five weeks will examine in more detail the major components of the financial statements including calculation of cost of food and beverage sold, inventory accounting, payroll, payroll taxes, tips, long-term assets and depreciation, goodwill, sales tax, credit card receipts, and bank reconciliations.

Assignments, Class Participation, and Attendance: Due to the COVID crisis and classes being online, there will not be regular weekly class times. Rather, I will post videos during that time of me explaining the topics for that week, with recaps from the previous week and notes for the upcoming week. There will be 3 or 4 Zoom sessions during this time where I am trying to get some accountants who are currently working in the field to help make the numbers more “real” and impart to you how they use the numbers to tell the stories that they need to tell for their segment of the industry. If a student desires to drop the class, the student is responsible for (1) filing the appropriate paperwork with Admissions & Records and (2) advising the instructor.

Grading:

Test 1 Understanding, Analyzing, and Preparing Hotel and Restaurant Financial Statements 30%

Test 2 Short-Term Decision-Making, Planning for New Business Ventures, and Breakeven Analysis 25%

Test 3 Inventories and Cost of Goods Sold, Long-Term Assets and Depreciation 25%

Short answer quizzes and homework throughout the semester quizzes 20%

Tests are graded on a “curve” for the class. If you receive below a low C on Tests 1 or 2, optional make-up tests will be provided and, if completed on a timely basis and satisfactorily, your grade can be raised to a low C.

ALL TESTS ARE “OPEN BOOK,” WITH USE OF CLASS MATERIALS, NOTES, AND

HANDOUTS. There will be no final exam per se.