Title: Applicability of activity-based costing in the Jordanian hospitality industry

Authors: Ashraf Bataineh

Addresses: Department of Financial and Administrative Sciences, AL-Balqa Applied University, Aqaba Branch, Jordan

Abstract: The study aims to investigate the level of activity-based costing (ABC) system adoption as a management accounting tool in the Jordanian hospitality industry, Aqaba. An empirical survey via questionnaire was conducted for 19 of the three, four and five stars hotels in Aqaba and the descriptive statistics were used to identify the level of ABC system adoption. The study found the adoption level to be very satisfactory. Overall, Aqaba hotels uses a modern management accounting techniques, such as (budgeting practices, profitability measures, product and customer profitability analysis), but they lack the detailed cost information system because ABC is widely adopted to provide such benefits, therefore, Aqaba hotels are placing greater emphasis on those techniques like the ABC system. The study provides a unique detailed examination of the management accounting practices by using the ABC system and also provides a strong indication for the unique future researches in this industry.

Keywords: management accounting techniques; budgeting practices; profitability measures; product profitability analysis; customer profitability analysis; cost strategy; competition; services variants; economic viability.

DOI: 10.1504/IJEBR.2018.092153

International Journal of Economics and Business Research, 2018 Vol.15 No.4, pp.475 - 489

Received: 30 Aug 2017
Accepted: 26 Sep 2017
Published online: 05 Jun 2018 *

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