1. Controllable and Noncontrollable Expenses Chapter 15

2. Direct Operating Expenses – What to control – F&B Flatware, laundry, uniforms, training – Rooms Cable, contract services, linen, uniforms – Others Lawn care, gas, trash removal, telecom – How to control them Due dates, correct license, use of resources

3. Direct Operating Expenses – Inventory “stuff” periodically and have a replacement plan, don’t get surprised – Control things like phone usage, don’t get scammed, be aware of your expenses – Music & entertainment expenses Type of music – Live, “elevator music”, entertainers, riders, meals – Marketing expenses Agency fees Internet Print Signage

4. Direct Operating Expenses Marketing expenses Travel expenses Donations Dues Gift card – Utilities expenses Electricity, water, gas other fuel Conservation – self vs. mandatory – Administrative & general expense Insurance Office supplies Comm systems

5. Direct Operating Expenses – Administrative & general expense Credit card % Human resources Security Travel – Repairs & Maintenance expenses Controllable or not Painting, renovation Equipment repair – Preventative maintenance plan – As it breaks Cleaning schedule

6. Direct Operating Expenses – Occupation expenses Rent Property taxes – Depreciation Noncash expense – does not cost cash but rather is expense Straight line method – Page 297 – Recorded as a expense annually or over that same time period Accelerated method – Double declining method Bottom line is less tax to pay because of devalue

7. Direct Operating Expenses – Interest Amount charged to a borrower for the use of money Is an expense Tax deductable but and expense