Define revenue centers, identify examples of revenue centers in a hospitality business, and explain their roles in financial reporting. Define revenu accounts, identify examples of revenue accounts for a hospitality business, and explain net revenue and gross profit. Net revenue is sales less allowances.
Gross profit is net revenue less cost of sales.
Identify what is meant by trade discounts and cash discounts, and explain their relevance to a hospitality business. Trade discounts are price reductions Cash discounts depend on payment, exclude freight charges ROG EOM Prox See exhibit 1 on page 10 of the text. Describe two methods for recording invoices involving discounts and two procedrues for recording cash discounts. Explain the common internal control forms and procedures involved in food and beverage sales. Describe the difference between the guest ledger and city ledger.