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Designing an Activity-Based Costing Method for Food and Beverage Businesses: A Determination of Activities

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Travel and Tourism: Sustainability, Economics, and Management Issues

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Abstract

Food and beverage companies generally use traditional cost calculation methods, but modern costing methods have emerged that allow these companies to calculate their costs more regularly. The current observational study looks to determine all department activities and transactions that occur in the process of designing an activity-based costing (ABC) system, which leverages a contemporary cost management approach. We propose cost center activities that can be used to calculate costs in a more realistic manner for food and beverage businesses. To determine activities in line with the ABC method, a first-class restaurant was chosen in Eskişehir, Turkey; there, the researcher made observations in each restaurant department, and activities and process steps were observed and noted in line with the ABC system. Additionally, the restaurant manager was interviewed. Subsequently, the obtained data were presented to, and approved by, the business manager. As a result of this work, five main activities were determined for food and beverage businesses: receipt of the order and service, food preparation, food preparation for the final product, preparation of the table and setups for the next operation, and purchasing.

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Acknowledgements

This study was supported by Anadolu University Scientific Research Projects Commission under the grant no: 1806E229.

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Authors and Affiliations

  1. Department of Gastronomy and Culinary Arts, Faculty of Tourism, Anadolu University, Eskisehir, Turkey

    Merve Özgür Göde

  2. Open Education Faculty, Anadolu University, Eskisehir, Turkey

    Vedat Ekergil

Authors
  1. Merve Özgür Göde
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  2. Vedat Ekergil
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Corresponding author

Correspondence to Merve Özgür Göde .

Editor information

Editors and Affiliations

  1. Faculty of Tourism, Anadolu University, Tepebaşı, Eskişehir, Turkey

    İnci Oya Coşkun

  2. Faculty of Hotel and Tourism Management, Universiti Teknologi MARA, Selangor, Malaysia

    Nor’ain Othman

  3. Department of Tourism Management, Sabaragamuwa University of Sri Lanka, Belihuloya, Sri Lanka

    Mohamed Aslam

  4. Department of Geography, Planning and Recreation, Northern Arizona University, Flagstaff, AZ, USA

    Alan Lew

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Özgür Göde, M., Ekergil, V. (2020). Designing an Activity-Based Costing Method for Food and Beverage Businesses: A Determination of Activities. In: Coşkun, İ., Othman, N., Aslam, M., Lew, A. (eds) Travel and Tourism: Sustainability, Economics, and Management Issues. Springer, Singapore. https://doi.org/10.1007/978-981-10-7068-6_6

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