HOSPITALITY ACCOUNTING SEM 3

Room Type     What is the meaning / definition of Room Type in the hospitality industry? In Hospitality, the days of a hotel only offering guests standard rooms for reservations are long gone! Nowadays, there are myriad room types and suites at hotels around the world – a delightfully eclectic selection – meaning that any size of group and most preferences can be catered for. Of course, variously sized and styled room are made available at differing rates, but prices can be adjusted depending upon occupancy, time of year, and other factors. Hotel Rooms It is quite strange, that so far in the hotel industry has not appeared a unified classification system for the hotel rooms. Of course, today almost any modern hotel has at its disposal standard rooms and suites. But often the same category of rooms in different hotels may imply different living conditions. There are basic classification systems, which are used in some coun

COST CONCEPT AND COST OBJECT The dictionary meaning of cost is “a loss or sacrifice”, or “an amount paid or required in payment for a purchase or for the production or upkeep of something, often measured in terms of effort or time expended”. C I M A Terminology defines cost as ‘resources sacrificed or forgone to achieve a specific objective’. Cost is generally measured in monetary terms. Basics of Cost Accounting Cost is the amount of expenditure (actual or notional) incurred on or attributable to, a specified thing or activity. Thus, material cost of a product will mean the expenses incurred in procuring, storing and using materials in the product. Similarly, labour cost will represent that part of payment made to the workmen for time spent on the product during its manufacture. Again, the term ‘cost’ can hardly be meaningful without using a suffix or a prefix. The cost is always ascertained with reference to some object, such as, material, Iabour, direct, indirect, fixed,