Discussion On The Application Of Activity-Based Cost Management In GLYT Hotel

Under the double pressure of vicious competition in the domestic market and continuous influx in the foreign market,the competition of the modern hotel industry is becoming more and more fierce.The competition facing hotels involves not only the seizure of market share,but also the embodiment of the advanced management ideas and methods.Therefore,if our hotels want to gain advantages in the competition,they must accept the application of advanced management methods to improve the hotel management level.Five-star hotels have the characteristics of diversified service products,large differences in service objects,high fixed costs and indirect costs,so it is difficult for traditional cost management methods to accurately aggregate costs into specific service products.Activity-based cost management,with its reasonable cost calculation method and more systematic and scientific management mode,will have significant advantages in improving the management of hotel industry.Taking GLYT as the object,this dissertation follows the research idea of“theoretical overview—necessity and feasibility analysis of the application of activity-based cost management in case company—Conceptual Design in case company—safeguard measures”.It adopts the research method of combining theoretical analysis with case analysis.On the basis of strategic management theory,cost driver theory and overall cost theory,taking GLYT hotel's application of activity-based cost management as the main line,this dissertation discusses the necessity and feasibility of the application of activity-based cost management according to the actual situation of GLYT hotel,and then analyzes the implementation process,effect and safeguard measures of its intended application.First of all,this dissertation expounds the meaning of activity-based costing and activity-based cost management and the accounting process of activity-based costing from a theoretical perspective.Then,it expounds the application fields of activity-based cost management,mainly from three aspects: activity analysis,customer profitability analysis and performance appraisal.Secondly,taking the GLYT hotel as the case study object,this dissertation states about the current operation and management situation of GLYT Hotel,and then expounds the necessity and feasibility of applying activity-based cost management in GLYT Hotel.GLYT Hotel has some problems in cost management,such as deficient content,single method,inaccurate cost accounting,and weak support of cost information to decision-making.Based on the above problems,it is necessary forGLYT Hotel to apply activity-based cost management to improve cost management.With great importance attached to cost management by the decision-makers and the support of hotel information system,the writer believes it is feasible to apply activity-based cost management in GLYT hotel.On this basis,the process of applying activity-based cost management in GLYT hotel is analyzed,including the following four aspects: the construction of hotel activity-based cost system,activity analysis,customer profitability analysis and performance appraisal.Firstly,in order to successfully apply the activity-based cost management,the activity-based costing system is designed according to the current situation of GLYT Hotel and the information needed by activity-based cost management.Secondly,value-added and efficiency analysis of GLYT Hotel operation are conducted to propose operational improvements.Thirdly,GLYT Hotel establishes models for profitability analysis of different customers,providing useful information for decision making.Fourthly,GLYT Hotel performance appraisal system based on activity-based cost management is established to further improve the management of the hotel.Finally,safeguard measures of GLYT Hotel to facilitate the application of activity-base cost management are proposed.(A)Improve the organizational management system to ensure that the decision-makers attach great importance to activity-based cost management.It mainly includes: guide enterprise managers to set up modernization activity-based cost management concept;build up scientific management system.(B)Improve the construction of information system.It mainly includes:increase the investment and construction of the information system to implement activity-based cost management more effectively;reorganize the original financial data to match the activity-based cost management mode.(C)Improve the quality of personnel and involve all personnel in management.It mainly includes: strengthening the training of management personnel and other auxiliary personnel;strengthen the publicity efforts to raise the cost awareness of all employees.The application research into activity-based cost management in the GLYT hotel can,not only provide more advanced management ideas and methods for the hotel's cost management,but also some experience for other hotels to apply activity-based cost management,which contribute to the overall improvement of the management level of our hotel industry.