Question

Describe how hospitality accounting is unique in terms of inventory perishability. Think about how this affect hospitality managers’ approach to inventory pricing

Answer 1

hospitality accounting is applied on the service industry. service industry like hotel management, airline,tourism industry.

perishable inventory item that have some expiration date, such food that will go bad if not eaten in a certain amount of time.

other example of the perishable inventory airlines ticket, hotel rooms.

how can you mange this inventory this one main issue in hospitality industry?

1. single period inventory control and first-in-first out [fifo] inventory valuation are commonly used to deal with perishable good.