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Operational Budgeting

Operational Budgeting

Code: ACC2RZ002
Extent: 5 ECTS (135 h)
Timing: Semester 2
Language: English
Level: Professional studies

Financial accounting

Learning outcomes
The course introduces how to use managerial accounting techniques to make and monitor operational budgets in hotel, restaurant and tourism business and how to use the operational budgets as management tools. The student will also learn how basic operational profitability and productivity ratios are used in the hospitality business. Use of spreadsheets when making the budgets will be handled.

On successful completion of this course, the student is able to

  • To apply Cost-Volume-Profit analysis
  • To use methods of forecasting sales and expenses
  • Make the main operational budgets
  • Make the variance analysis of budgets
  • Use the industry operational profitability and productivity ratios as management tools and put them in practical use
  • Utilize the spreadsheets when making financial calculations.

Course contents

  • Basic cost concepts
  • Cost-Volume-Profit analysis
  • Forecasting methods
  • Sales budget
  • Planning and budgeting of expenses
  • Budgeted Income Statement
  • Variance analysis
  • Efficient use of labour force

Cooperation with the business community and other organisations

  • Students are encouraged to actively present their own thoughts and knowledge from their working experiences.
  • All the assignments are working life related and based on practical cases
  • Visiting speaker from industry

Throughout the course international accounting standards will be applied.

Teaching and learning methods

  • Contact lessons
  • Group working
  • Individual learning
  • Examination

Contact hours of teaching and other learning methods:

  • Contact lectures 40 hours
  • Group working 24 hours
  • Individual learning 70 hours
  • The own learning assessment 1 hour

Recognition of Prior Learning (in Finnish AHOT)
Courses or parts of courses at other educational institutes or work experience are not accredited as such towards the HAAGA-HELIA studies directly, but the required skills and competences are demonstrated by a skills examination.

Teacher/s with the main responsibility for the course
Pekka Heikkilä

Course materials
Schmidgall, R. 2006 (or later). Hospitality Industry Managerial Accounting. Educational Institute of the American Hotel & Motel Association, USA. Chapters 6, 7, 9 and 10
Lecture materials in Moodle


  • Group working
  • Individual examination

The own learning assessment assignment does not impact your grade. The assignment is the same for all courses/modules and your answers will be used also for course development.

Assessment objects

  • Student´s skills to apply CVP technique in solving managerial accounting problems
  • Student´s skills to produce forecasts and operational budgets included in course contents and handle them as management tools
  • Student´s skills to plan the use of labour force efficiently

The course is evaluated on a scale excellent (5), very good (4), good (3), satisfactory (2), fair (1), fail (0). The assessment criteria is presented on a scale 1 - 3 - 5.

Grade 1
The student masters the basic aspects of operational accounting techniques included in course contents. With given instructions, the student has the ability to perform basic tasks, but needs a lot of guidance.

Grade 3
The student masters the essential aspects of operational accounting techniques included in course contents. With given instructions, the student will be able to perform basic tasks.

Grade 5
The student masters the aspects of operational accounting techniques included in course contents. The student has the ability to apply the knowledge and skills learned in management position.