Skip to main content



Managerial Accounting for the Hospitality Industry, 2nd Edition

Lea R. Dopson, David K. Hayes

ISBN: 978-1-119-29927-1 November 2016 516 Pages


TRY (FREE for 14 days), OR RENT this title:

Following a successful debut edition, this new Second Edition of Managerial Accounting for the Hospitality Industry builds on its strengths of clear organization and the ease with which students work through it. This new edition includes more basic math support for students and a more developed inclusion of ethical considerations and global changes both in accounting systems and in the hospitality industry.

Related Resources



1 Hospitality Industry Accounting 1

Unique Aspects of the Hospitality Industry 1

The Purpose of Accounting in the Hospitality Industry 3

Branches of Accounting 5

Why Hospitality Managers Use Managerial Accounting 11

The Uniform System of Accounts 13

Ethics and Hospitality Accounting 15

Apply What You Have Learned 19

Key Terms and Concepts 20

Test Your Skills 20

2 Accounting Fundamentals Review 24

Bookkeeping and Accounting 24

The Accounting Equation 26

Recording Changes to the Accounting Equation 27

Generally Accepted Accounting Principles 37

The Hospitality Business Cycle 48

Apply What You Have Learned 52

Key Terms and Concepts 52

Test Your Skills 53

3 The Income Statement 58

The Purpose of the Income Statement 58

Income Statement Preparation 63

Income Statement Analysis 83

Apply What You Have Learned 104

Key Terms and Concepts 104

Test Your Skills 105

4 The Balance Sheet 113

The Purpose of a Balance Sheet 113

Balance Sheet Formats 119

Components of the Balance Sheet 126

Balance Sheet Analysis 138

Apply What You Have Learned 144

Key Terms and Concepts 145

Test Your Skills 145

5 The Statement of Cash Flows 156

Understanding Cash Flows 157

The Purpose of the Statement of Cash Flows (SCF) 158

Sources and Uses of Funds 160

Creating the Statement of Cash Flows 167

Statement of Cash Flows Analysis 182

Apply What You Have Learned 185

Key Terms and Concepts 186

Test Your Skills 186

6 Ratio Analysis 196

Purpose and Value of Ratios 197

Types of Ratios 200

Comparative Analysis of Ratios 243

Ratio Analysis Limitations 245

Apply What You Have Learned 247

Key Terms and Concepts 247

Test Your Skills 248

7 Food and Beverage Pricing 258

Factors Affecting Menu Pricing 258

Assigning Menu Prices 262

Menu Price Analysis 269

Apply What You Have Learned 287

Key Terms and Concepts 287

Test Your Skills 288

8 Revenue Management for Hotels 294

Establishing Room Rates 294

Revenue Management 307

Non‐Room Revenue 320

Apply What You Have Learned 324

Key Terms and Concepts 324

Test Your Skills 325

9 Managerial Accounting for Costs 334

The Concept of Cost 334

Types of Costs 336

Cost/Volume/Profit Analysis 354

Apply What You Have Learned 362

 Key Terms and Concepts 363

Test Your Skills 363

10 Forecasting in the Hospitality Industry 373

The Importance of Accurate Forecasts 374

Forecast Methodology 376

Utilizing Trend Lines in Forecasting 393

Apply What You Have Learned 396

Key Terms and Concepts 397

Test Your Skills 397

11 Budgeting and Internal Controls 402

Importance of Budgets 403

Types of Budgets 405

Operations Budget Essentials 408

Developing an Operations Budget 409

Monitoring an Operations Budget 417

Cash Budgeting 427

Managing Budgets through Internal Control 434

Apply What You Have Learned 439

Key Terms and Concepts 440

Test Your Skills 440

12 Capital Investment, Leasing, and Taxation 450

Capital Budgeting 451

Capital Investment 454

Financing Alternatives 467

Taxation 475

Apply What You Have Learned 483

Key Terms and Concepts 484

Test Your Skills 484

Index 493

NEW! Updated financial statements that incorporate changes in the Uniform System of Accounts for Restaurants (USAR) and the Uniform System of Accounts for the Lodging Industry (USALI). All financial statements in this revised version of the text have been reformatted to conform to the recommendations presented in the newly released 8th edition of the USAR and the 11th edition of the USALI.

NEW! Here’s How It’s Done “Here’s How It’s Done” is a new feature used to assist students in areas where math concepts may be challenging. Simple step‐by‐step instructions on how frequently used calculations are made help readers see exactly how to apply mathematical procedures to areas of importance.

NEW! Consider the Cost Case Studies These new, real‐life scenarios, added to each chapter, allow readers to directly apply the concepts presented in the text to realistic challenges they will likely encounter as managers. Instructors can incorporate this new feature as in‐class discussions or as take‐home assignments.

NEW! Managerial Accounting Around the World The hospitality industry is increasingly globalized. This unique feature, presented in each chapter, illustrates the importance of understanding managerial accounting from a global perspective.