Application Of Time-driven Activity Based Costing In NC Hotel

In the context of the global economic downturn and the Sino-US trade war,the growth rate of the hotel industry has slowed down significantly.Although the overall growth rate of the market has slowed,consumer demand for travel has not decreased.Consumers are increasingly demanding of hotel services,and the development of star hotels is facing severe challenges.At present,the hotel industry generally adopts a single cost allocation method,which is directly divided into "operating costs" and "period expenses" for accounting,the accounting method is relatively backward,and the management’s decisions cannot be met,so how to apply the appropriate cost accounting methods to improve the cost management system is what the hotel management has been concerned about.The time-driven operation cost method is based on the traditional operation cost method,based on the allocation of time,to analyze the profitability and resource utilization of the hotel customer group to meet the multi-faceted decision-making needs of managers.Based on the relevant cost data of NC hotels in 2019,the paper uses the combination of literature research method,field investigation method,inductive analysis,theory and case study to discuss the application of time-driven operation cost method in hotels.Through field visits to NC hotels,we analyze the problems in their costing.Based on the theory of time-driven activity costing,the overhead costs of NC hotels in2019 are re-aggregated.Finally,the cost data before and after the application of the time-driven operation cost method in each department of the NC hotel are compared,the current contribution of customer groups to the hotel profits and the use of resources in various departments are analyzed,and some constructive suggestions are put forward for the implementation of the time-driven operation cost method for the hotel.Through a series of analysis and research,the application of the time-driven operation costing method is finally derived: First,the application of the time-driven operation costing method in the hotel can not only simplify the costing process,but also improve the reasonableness and appropriateness of the costing data.Second,the update of the time-driven operation cost model is more flexible and faster,which can cope with the complex and changeable business of the hotel and save more manpower and material resources for the hotel.Third,the time-driven operation cost method can analyze the profitability and resource utilization of customer groups,and managers can judge whether pricing is reasonable,how to treat differentiated management of customers,and how to allocate resources reasonably,so that managers can make scientific and correct business decisions in many aspects.