Activity-Based Costing in the Restaurant Industry: What's Past Is Prologue. Issue 2 (2nd July 2016)

• Record Type: Journal Article
• Authors: Raab, Carola; Zemke, Dina Marie
• Is Part Of: Journal of hospitality financial management. Volume 24:Issue 2(2016)
• Page Start: 133
• Page End: 146
• Publication Date: 2016-07-02
• Subjects: Hospitality industry -- United States -- Finance -- Periodicals; Hospitality industry -- Finance; United States; Periodicals; 338.436479
• DOI: 10.1080/10913211.2016.1239488
• Languages: English
• ISSNs: 1091-3211

Abstract

Abstract : Restaurant managers often do not have a comprehensive understanding of all of the costs involved in operating a successful restaurant, leading to inaccurate, and potentially unprofitable, menu item pricing. One trend in cost analysis is to explore techniques used in other industries, including activity-based costing. A body of work exploring the application of activity-based costing in the foodservice industry has gradually evolved. A review of previous research on activity-based costing in various restaurant segments validates it as a consequential approach that is capable of reducing waste, preserving employment, and producing maintainable profitability in the restaurant industry.