controllable and noncontrollable expenses chapter 15
TRANSCRIPT
Controllable and Noncontrollable Expenses
Chapter 15
Direct Operating Expenses
– What to control– F&B• Flatware, laundry, uniforms, training
– Rooms• Cable, contract services, linen, uniforms
– Others• Lawn care, gas, trash removal, telecom
– How to control them• Due dates, correct license, use of resources
Direct Operating Expenses
– Inventory “stuff” periodically and have a replacement plan, don’t get surprised
– Control things like phone usage, don’t get scammed, be aware of your expenses
– Music & entertainment expenses• Type of music
– Live, “elevator music” , entertainers, riders, meals
– Marketing expenses• Agency fees• Internet • Print• Signage
Direct Operating Expenses
Marketing expenses• Travel expenses• Donations• Dues • Gift card
– Utilities expenses• Electricity, water, gas other fuel• Conservation – self vs. mandatory
– Administrative & general expense• Insurance• Office supplies• Comm systems
Direct Operating Expenses
– Administrative & general expense• Credit card %• Human resources• Security• Travel
– Repairs & Maintenance expenses• Controllable or not• Painting, renovation• Equipment repair
– Preventative maintenance plan– As it breaks
• Cleaning schedule
Direct Operating Expenses
– Occupation expenses• Rent• Property taxes
– Depreciation• Noncash expense – does not cost cash but rather is
expense• Straight line method
– Page 297– Recorded as a expense annually or over that same time period
• Accelerated method– Double declining method
Bottom line is less tax to pay because of devalue
Direct Operating Expenses
– Interest• Amount charged to a borrower for the use of money• Is an expense• Tax deductable but and expense