HM 351 Chapter Notes - Chapter 2: Cost Accounting, Operating Budget

• School: JMU
• Department: Hospitality Management
• Course: HM 351
• Professor: Tony Kim

Document Summary

Control: exercising governing power over events and situations such that an outcome can be achieved or prevented. Cost control: the process used by managers to regulate costs and guard against excessive costs. Control process: establish standards and standard procedures for operation, train all individuals to follow established standards and standard procedures, monitor performance and compare actual performances with established standards, take appropriate action to correct deviations from standards. Sales control: steps to ensure all sales result in appropriate income to the business. Standards: rules or measures established for making comparisons and judgements. Quality standards: define degree of excellence of raw materials, finished products, and by extension, work. Quantity standards: measures of weight, count, or volume used to make comparisons and judgements. Standard cost: cost of goods/ services identified, approved, and accepted by management. Procedures: methods employed to prepare products or perform jobs. Standard procedures: those that have been established as the correct methods, routines, and techniques for day-to-day operations.