Application Of Activity-based Cost Management In F Hotel

With the economic development and prosperity, the demand of hotel housing is greatly stimulated by the public due to their frequent business. In China, our cost management level of hotel industry is not high enough. According to the traditional cost calculation method on high fixed costs and the attention of process, it is hard for hotel industry to provide decisive data.Thus, how to improve cost management level and seek core-competitiveness in order to make sure enough profit margins. For this, it can improve hotels’ management level and competitiveness. According to analyzing the author draws the conclusion that protocol customers have the greatest profitability and produce the maximum profit.Thesis contains seven chapters. The first chapter is the introduction, with describes the background and significance, research status, research ideas and innovations. The second chapter gives the definitions, process and theories of Activity-Based Costing Management.The third chapter is F hotel information and current cost management, analyzing the characteristics of cost structure and cost management. The fourth chapter introduces the problems and reasons of cost management of F hotel. It includes imperfect credit system,one-sided emphasis expenditures to reduce cost, weak purchase and stock management.Resulting in cost management is confusion, responsibility is not clear, neglect broader cost drivers, cost control system is not perfect. The fifth chapter proposed a design and application of Activity-Based Costing Management and makes sure there are three activity centers,analyzing activity cost drivers. For example, to room center, it will do a job allocation on its cost and the cost accounting result will be compared with the previous one under the ABCM,which supports the production pricing decision and making budget decision. According to analyzing the author draws the conclusion that protocol customers have the greatest profitability and produce the maximum profit. The sixth chapter has proposed a corresponding goal to perform. The last part is the conclusion of this thesis, it concludes the whole contents and make outlook.