Title : The Application of Time-Driven Activity-Based Costing In the Hospitality Industry: An Exploratory Case Study
Author(s) : Bas Basuki & Mertzha Dwiputri Riediansyaf
Airlangga University, Indonesia
DOI : https://cmaaustralia.edu.au/ontarget/wp-content/uploads/2014/06/JAMARv12.1-TDABC-in-Hospitality-Industry.pdf
Abstract
In managing a company, the management and the board need accurate information about operational cost structures and profitability in order to help them in the decision making processes. To provide accurate information, a cost calculation system is generally used to show how the company has allocated its resources to supply its products/services. This paper looks at the application of Time Driven Activity-Based Costing (TDABC) in a service company. The cost object of this research is a Hotel and the Room Division that is the main source of the hotel’s revenue. Approximately 80% of the hotel’s revenue comes from room rent activity. Both direct and indirect costs are recalculated using the TDABC method. The results from the TDABC are then compared to the results from the initial cost calculation method used by the company. This research shows that the TDABC method is applicable for Hotel services costing and also that the capacity cost rate can be more accurately and flexibly used in cost compilation.
Keywords : Time Driven ABC (TDABC), Service Industry Costing, Case Study, Capacity Cost Rate, Cost Driver Rate, Time Equations
Source : https://cmaaustralia.edu.au/ontarget/category/jamar/
