Module Details
| Module Code: |
HOSP7036 |
| Title: |
Cost Management
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Long Title:
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Cost Management
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| NFQ Level: |
Intermediate |
| Valid From: |
Semester 1 - 2017/18 ( September 2017 ) |
| Field of Study: |
8110 - Hospitality
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| Module Description: |
The module will examine the items and behaviour of the components of cost in a culinary business and appropriate methodologies in achieving effective business performance levels.
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| Learning Outcomes |
| On successful completion of this module the learner will be able to: |
| # |
Learning Outcome Description |
| LO1 |
Explain the range within which cost items are acceptable in well performing culinary businesses. |
| LO2 |
Explain the mechanisms for managing the key cost items, labour, food and beverage, energy and other business overheads. |
| LO3 |
Know the components of price and calculate the appropriate price, using appropriate software, to achieve the required profit margins in an operation. |
| LO4 |
Describe the link between cost demand and profit as part of the marketing and selling function. |
| LO5 |
Explain the importance of monitoring and control in cost management. |
| Dependencies |
Module Recommendations
This is prior learning (or a practical skill) that is strongly recommended before enrolment in this module. You may enrol in this module if you have not acquired the recommended learning but you will have considerable difficulty in passing (i.e. achieving the learning outcomes of) the module. While the prior learning is expressed as named MTU module(s) it also allows for learning (in another module or modules) which is equivalent to the learning specified in the named module(s).
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Incompatible Modules
These are modules which have learning outcomes that are too similar to the learning outcomes of this module. You may not earn additional credit for the same learning and therefore you may not enrol in this module if you have successfully completed any modules in the incompatible list.
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| No incompatible modules listed |
Co-requisite Modules
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| No Co-requisite modules listed |
Requirements
This is prior learning (or a practical skill) that is mandatory before enrolment in this module is allowed. You may not enrol on this module if you have not acquired the learning specified in this section.
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| No requirements listed |
| Indicative Content |
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Components of Cost
Food and Beverage items, Labour Cost components, Energy Cost, other overheads.
The trading profit and Loss account (income statement).
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The interaction of Costs and Business Volume
The sales mix, the profit margin and other relevant KPI's.
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Managing Cost Components
Purchasing, receiving, storing, issuing, pricing and menu engineering.
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Factors contributing to low
profitability
Control systems, stock taking, stock calculations, implementation of results oriented plans.
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Labour Cost
The importance of the labour cost budget. Managing staff levels and performance, Effective Rostering.
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Pricing
Establishing the necessary gross profit margin. Calculating gross profit margins, selling price & break-even analysis using Microsoft Excel.
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Module Content & Assessment
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| Assessment Breakdown | % |
|---|
| Coursework | 50.00% |
| End of Module Formal Examination | 50.00% |
Assessments
| End of Module Formal Examination |
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| Reassessment Requirement |
Repeat examination
Reassessment of this module will consist of a repeat examination. It is possible that there will also be a requirement to be reassessed in a coursework element.
|
The University reserves the right to alter the nature and timings of assessment
Module Workload
| Workload: Full Time |
| Workload Type |
Contact Type |
Workload Description |
Frequency |
Average Weekly Learner Workload |
Hours |
| Lecture |
Contact |
Lecture and discussion |
Every Week |
2.00 |
2 |
| Lab |
Contact |
Computer lab based practical costing and spreadsheets |
Every Week |
1.00 |
1 |
| Independent & Directed Learning (Non-contact) |
Non Contact |
Self -directed study and additional reading to build on lecture derived material. |
Every Week |
4.00 |
4 |
| Total Hours |
7.00 |
| Total Weekly Learner Workload |
7.00 |
| Total Weekly Contact Hours |
3.00 |
| Workload: Part Time |
| Workload Type |
Contact Type |
Workload Description |
Frequency |
Average Weekly Learner Workload |
Hours |
| Lecture |
Contact |
Lecture and discussion |
Every Week |
2.00 |
2 |
| Lab |
Contact |
Computer lab based practical costing and spreadsheets |
Every Week |
1.00 |
1 |
| Independent & Directed Learning (Non-contact) |
Non Contact |
Self -directed study and additional reading to build on lecture derived material. |
Every Week |
4.00 |
4 |
| Total Hours |
7.00 |
| Total Weekly Learner Workload |
7.00 |
| Total Weekly Contact Hours |
3.00 |
|
Module Resources
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| Recommended Book Resources |
|---|
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Lea R. Dopson, David K. Hayes, Jack E. Miller. (2015), Food and Beverage Cost Control, 6th. Wiley & Sons, Hoboken, N.J., p.632, [ISBN: 978-11189884].
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Davies, B., Lockwood, A.. (2012), Food and Beverage Management, 5th. Routledge, London, [ISBN: 978008096670].
| | Supplementary Book Resources |
|---|
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John R. Walker. (2014), The Restaurant From Concept to Operation, 7th. John Wiley, Hoboken, N.J., [ISBN: 9780471740575].
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Lendal H. Kotschevar, Diane Withrow. (2008), Management by menu, 4th. John Wiley, Hoboken, N.J., p.144, [ISBN: 9780471475774].
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Clayton W. Barrows, Tom Powers. (2011), Introduction to management in the hospitality industry, 10th. John Wiley & Sons, Hoboken, N.J., p.768, [ISBN: 978-047039974].
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Stephen Barth; David K. Hayes, consulting author. (2009), Hospitality law, John Wiley & Sons, Hoboken, N.J., [ISBN: 9780470083765].
| | This module does not have any article/paper resources |
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| Other Resources |
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Website, Microsoft Excel help,
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