Application of ABC in hot spring country inn
by Wen-Hsien Tsai, Jui-Ling Hsu, Chia-Hsin Chen, Yu-Wei Chou, Sin-Jin Lin, Wan-Rung Lin
International Journal of Management and Enterprise Development (IJMED), Vol. 8, No. 2, 2010

Abstract: This paper implements activity-based costing (ABC) method to analyse the operational costs structure of a hot spring country inn in the Yang-Ming-Shan area of Taiwan. ABC method was used to compute the lodging, hot spring use and meal serving costs per customer. The result shows a real cost structure in B&B industry where study in this non-traditional lodging is rare in literature. In addition, we find that the major advantage of using ABC of a country inn is that it gives better insight into the customer costs for each market segment in order to offer more accurate cost information for innkeepers to make better managerial decision. Also, we compare the ABC with the traditional costing method, and conclude that the ABC method is a more suitable and appropriate tool than traditional accounting method in a country inn.

Online publication date: Wed, 10-Feb-2010

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Management and Enterprise Development (IJMED):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com