HFT 3431 – Managerial Accounting For The Hospitality Industry
University of Central Florida
Fall 2009– Shoemaker
Test 2 Study Notes:
What you need to bring:
Calculator, with fresh batteries
Extra pencils
Scantron FORM F-1712-PAR-L
General Notes:
When you do the calculations, set your calculators to go out 4 decimal points … this is extremely important
for the ratios
Know what format the answers need to be in, percentages in percentages (12.34%) and dollars in dollars
($12.34)
If your calculations result in an answer of 0.6578 for Occupancy Percentage then write 65.78%
If you are calculating REVPAR and your calculation results in 34.6523 then write $34.65
The quizzes and the worksheets are good references to study from for the Exam
You will have 5 minutes to scribble whatever extra notes you want onto the formula page
What I will provide you:
Exam and scratch paper
The following formulas … you will need to memorize any other formulas to answer the questions on the
test. You will also need to know how to work the formulas. The formulas I provide will use acronyms
as stated in the book (see breakeven example below).
Page 244 – Ratio’s Formulas (remember how to calculate “averages”)
CMR as stated on page 325
Breakeven calculations page 321 ( you will need to know what S, X, V, and F represent )
0 = Sx – Vx – F
X = F / ( S – V)
F = Sx – Vx
S=(F/x)+V
V=S–(F/x)
What to Expect On The Test:
The first page will be the vocabulary words as listed on the syllabus … I will give you the words and their
definitions and you will have to match them up.
Chapter 5:
Study the 5 ratio types and know what they represent
Know what ratios belong to which type (ie: Current Ratio is a Liquidity Ratio)
I will give you a hand out with the required ratios formulas (see page 244) and ask you to do calculate a
few ratios with multiple guess answers
Remember to read the formulas correctly … especially the ones that want “average” assets or liabilities.
The “average” is ( ( beginning + ending ) *.5 )
Chapter 6:
Know the various costs (fixed, mixed, variable, step, etc) and examples of each
Know that Total Mixed Cost = Fixed Costs + ( variable cost per unit * units sold)
… page 270 - 271
Know that there are 3 ways to estimate the fixed and variable cost portions of a mixed cost expense
High/low
Scattergram
Regression Analysis
Pages 272 - 278
Be able to do a High/Low method problem (see worksheet)
See pages 278 - 279 and be able to calculate the indifference point when given a fixed cost lease and a
variable cost lease
See page 286 and be able to do a Buy or Lease problem like worksheet
Chapter 7:
Study the formulas on page 321 for the various break-even scenarios … will have a series of questions like
on the worksheet
See page 320 and be able to identify the following elements
Variable Cost line
Total Revenue Line
Fixed Cost Line
Total Cost Line
Break-Event Point
Operating at a profit
See page 325 and be able to calculate Contribution Margin and Contribution Margin Ratio
See page 327 and be able to calculate the additional sales required to cover an increase in fixed cost
Good Luck!!!