Operating budget processes and practices of clubs: a repeated cross-sectional study over four decades

ABSTRACT

This study represents the fourth phase of a repeated cross-sectional study that was begun in 1985. It examines the current trends of private clubs’ operating budget practices and the changes in the practices over four decades. General managers (GMs) in the private club industry were selected to answer questions in managing their operating budgets, and 408 responses were collected. This study shows that in most clubs, the operating budgets are prepared through a cooperative effort involving the GM, accounting department heads, and others (e.g., department heads and committee heads). Depending on their size—in terms of revenue and membership size—clubs differ significantly in how they prepare operating budgets. As one of only a few budgeting studies in the hospitality industry, this study makes several contributions to the hospitality accounting literature, management, and education.

KEYWORDS:

• Operating budgets
• budgeting practices
• private club industry
• repeated cross-sectional study
• hospitality managerial accounting