Fixed costs, variable costs, mixed costs, step costs, direct costs, indirect costs, joint costs, incremental costs, standard costs, sunk costs, opportunity costs... if Raj Patel heard his dad talk about any more kinds of costs, he thought he would go crazy. His dad was the company owner and accountant. Raj had just taken his first property manager's job in his father’s 10-unit hotel company. “The most important costs,” said his dad, “are those you can control.”
That really doesn’t make any sense, thought Raj, all costs are controllable, just close the hotel and all the costs are gone! Raj thought that was a pretty funny way to look at costs, but his dad...not so much! Raj really did know that his job was to keep his assigned property operating at a high level of profit and to do so he would need to be seriously concerned about the costs he could control. Help Raj identify his controllable costs by placing a “C” before those costs typically controlled by a property general manager and an “N” before those that a property manager would likely not control.
Room maintenance costs Hotel mortgage Grounds maintenance services Supervisor salaries Cost of pool chemicals Complimentary breakfast costs Staff uniform costs CnERDOe s Franchise fees Employee meal costs Property taxes Uo Electronic key card costs Staff training Interest expense Internet advertising Income taxes Office supplies In-room guest amenities ogWsOseh e Insurance costs Electrical usage (Geap) Assistant manager’s bonus