Activity-Based Costing in the Hospitality Industry: A Case Study in a Hotel
The purpose of this study is to provide some empirical evidence about implementing Activity-Based Costing (ABC) in the hospitality industry in Iran. For this purpose, we consider the Tabriz International Hotel as our sample hotel and then gather the relevant data from its cost accounting system in 2012. Then, we use ABC as our costing method and compare the cost of each service unit with that cost which had been extracted for the traditional costing method. The results show a different cost per unit for two methods. Also, because of its more precise and detailed provided information, an ABC system facilitates the decision-making process for managers on decisions related to profitability analysis, budgeting, pricing, and so on.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1132030Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 5058
 Pellinen, J. (2003). Making price decisions in tourism enterprises. Hospitality Management, 22, 217-235.
 Harris, P., & Brown, B. (1998). Research and development in hospitality accounting and financial management. Hospitality Management, 17, 161-181
 Potter, G., & Schmidgall, R. (1999). Hospitality management accounting: Current problems and future opportunities. International Journal of Hospitality Management, 18, 387-400.
 Bjornenak, T. (1997). Diffusion and accounting: The case of ABC in Norway. Management Accounting Research, 8, 3-17.
 Drury, C. (2000), Management and cost accounting. London: Thomson Learning.
 Briedley, J., Cowton, C., & Drury, C. (2001). Research into product costing practices: a European perspective. European Accounting Review, 10, 215-256.
 Pavlatos, O., & Paggios, I. (2009). Activity-Based Costing in the Hospitality Industry: Evidence from Greece Journal of Hospitality & Tourism Research, Vol. 33, No. 4, November 2009, 511-527
 Horngren, C., Bhimani, A., Datar, S., & Foster, G. (1997). Management and cost accounting. New York: Prentice Hall.
 Fay, C., Rhoads, R., & Rosenblatt, R. (1976). Managerial accounting for the hospitality service industry. Dubuque, IA: Brown
 Kaplan, R. S., & Cooper, R. (1998). Cost & effect: Using integrated systems to drive profitability and performance. Boston: Harvard Business School Press.
 Noone, B., & Griffin, P. (1997). Yield management and costumer profitability analysis. International Journal of Contemporary Hospitality Management, 9(2), 75-79.
 Tai, H. (2000). The application of activity based costing in hotel context. Unpublished masters thesis, Oxford Brooks University, Oxford, UK.