Copyright CTH 2017 8 | Page bUNITS OF ASSESSMENT

CTH Level 5 Advanced Diploma in Tourism Management Qualification Specification

Copyright CTH 2017 9 | Page b
Title
Understanding Funding and Finance in Tourism and Hospitality
Unit purpose and aims) This unit covers understanding the concepts of financial management and accounting within a hospitality or tourism business controlling the finances and managing the cash flow and Manage the profitability of a department within a hospitality or tourism business
Ofqual ref K Unit Code
UFTH Level
4 Credit value
15
GLH
105 Learning outcomes When awarded credit for this unit, a student will Assessment criteria Assessment of this learning outcome will require a student to demonstrate that they can Indicative content
1. Understand the sources of funding for both the private and public sectors in the tourism and hospitality industry.
1.1 Describe the main sources of internal funding.
1.2 Describe the main sources of short term external funding.
1.3 Describe a number of sources of long term external funding.
1.4 Describe the role the public sector may have in funding the industry. Retained profits, commission, cost- cutting Leases creditors debt factoring, Mortgages, bank loans, external investors, Grants, startup loans, heritage infrastructure, transportation links, Understand the importance of costs, volume and profit for decision making in tourism and hospitality
2.1 Identify costs such as direct, indirect, fixed and variable and use methods of allocation and apportionment.
2.2 Discuss how the volume of trade can affect income using break-even analysis.
2.3 Show how to use different pricing methods to achieve targeted gross and net profits Materials, consumables, labour, fuel, insurance, rent, mortgage and other overheads, Unit sales overtime, costs related to both time and volume of sales, identification of the margin of safety. Cost led including cost-plus; use of given formulae such as gross profit percentage, market-led, contribution based & marginal costing, targeted return on investment.
3. Understand the use of management accounting information to assist decision making in tourism and hospitality
3.1 Explain whereto find the relevant management accounting information fora given issue.
3.2 Use a range of processes and procedures to aid decision making Management accounting tools such as budgets, variance analysis, forecasts, cash flow Comparing actual results with budgets & forecasts, comparisons with targets inc solvency and profitability.

CTH Level 5 Advanced Diploma in Tourism Management Qualification Specification

Copyright CTH 2017 10 | Page. Interpret financial accounts to aid indecision making in the tourism and hospitality industry
4.1 Use a number of tools to measure and interpret given financial accounts
4.2 Use the recognised tools shown into make valid suggestions on how to improve the business performance. Financial accounts will include trading account, profit and loss account, balance sheet and cash flow, Examples of tools used to interpret and analyse business performance include gross and net profit percentages return on capital employed current test acid test debtors & creditors payment periods stock turnover Sales mix, turnover and gross margin per employee Occupancy ratios, average spend per head. Comments and suggestions which are based upon the correct use of the recognised tools, which identify and explain a number of feasible, practical and realistic actions to take which can be expected to improve the business performance.

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