The 100-room Domain Hotel has been operating for three years. Its market is value- minded travelers who enjoy comfortable rooms and a variety of complimentary services, including a hot breakfast with delicious offerings. The Domain s other amenities are high-speed Internet access in all rooms, wireless Internet access in the lobby and meeting rooms, 24-hour coffee in the lobby, local calls, and an in- room movie channel. The Domain Hotel is family owned. A close family friend, in public practice, serves as the hotel s accountant and has designed the hotel s finan- cial reporting system. The friend has no hospitality experience or education. The current system consists of two reporting segments: (1) a revenue cen- ter that includes rooms, restaurant, and gift shop (no liquor is sold on premises); and (2) a support center that includes marketing, administrative, maintenance, and utility costs. Income from vending machines is credited to the administrative department. Essentially, the income statements prepared for the Hotel Domain s manage- ment are: . The Hotel Income Statement One Revenue Center . One Support Center Challenge 1. Describe the major weaknesses of the practice of placing all revenue centers into one reporting segment. 2. Describe the major weaknesses of the grouping of all support centers into one reporting segment. 3. Comment on the handling of income from vending machines. 4. Explain how the departments should be structured for reporting in accor- dance with the Uniform System of Accounts for the Lodging Industry. 5. Summarize your explanation in #4 with a diagram of the reporting structure. 6. Explain whether the accountant should be retained. 7. Comment on other areas that might not be in compliance with the Uniform System of Accounts for the Lodging Industry.