ABSTRACT
The purpose of this chapter is, as indicated by its title, to suggest how one should analyse the profitability of the revenue-producing departments of a hotel. This we will do by examining the problems inherent in cost apportionment, as this—where practised—has far-reaching implications. The second part of the chapter will be devoted to the application of some of the concepts and techniques we are already familiar with (contribution, P/V ratio, break-even analysis, etc.) to departmental profitability.
