Basic business and financial principles for the Hospitality industry
Unit summary
The purpose of this unit is to enable learners to understand the use of business and financial principles in order to generate profits and operate a successful hospitality business. Learners will understand the relationship between income, costs and profit and develop skills to support them in both their personal and working life, through managing resources to the best advantage.
Unit details
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07 Retail and Commercial Enterprise
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07.4
Hospitality and Catering
Task-based controlled assessment
| Learning Outcome |
Assessment Criteria |
| 1. Know the basic financial principles relevant to the Hospitality industry |
a. identify types and properties of costs, using appropriate terminology
b. describe the basic financial principles used in the hospitality industry. |
| 2. Understand the factors that affect profitability |
a. explain how costs are controlled in the hospitality industry
b. explain the importance and use of budgets
c. describe break even analysis. |
| 3. Understand how financial information is used to inform business decisions |
a. explain the relationship between income, costs and volume and the effect on profits and break even for hospitality establishments
b. interpret the basic financial documents used in the hospitality industry |
| 4. Be able to construct basic financial documents |
a. construct basic financial documents using financial calculations, including break even analysis
b. communicate basic business and financial information using appropriate terminology in relevant ways for different audiences
c. support conclusions, using reasoned arguments and evidence. |