The activity based costing system and its implementation in hotel enterprises

The Activity Based Costing System initially collects general overhead expenses into a defined activity pools and then they are distributed on products by various cost drivers in respect of their activity consumptions. Thus, indirect costs of each product are calculated more correctly than traditional costing systems.The context of our study consists of hotel enterprises. With their factors of carrying foreign exchange incomes and positive contribution for employment, hotel enterprises assist state economy at great scales. Furthermore a great piece of total costs of hotel enterprises consists of general overhead costs. Because of these properties, it is thought that Activity Based Costing System will contribute to correct products calculations.The aim of this study is to reveal advantage of Activity Based Costing System in hotel enterprises which are forced to calculate cost of services, because of high general production outcomes and to prove that this method is more correct and sensitive than traditional accountancy methods. So it would be possible to distribute general production costs on produced services more correctly. Reason for making this Activity Based Costing System analysis in hotel enterprise is that hotel enterprises keep various activities in their bodies. With this direction, it is assessed that effect of Activity Based Costing System would be reveal more clearly by using Activity Based Costing System in service enterprises. By the aim of More precise understanding for importance of Activity Based Costing System in hotel enterprises, an application of Activity Based Costing System in a five star hotel was implemented.As a result, we reached at the following outcomes ;?The high shares of general production outcomes in the total outcomes; makes Activity Based Costing System more applicable at hotel enterprises.?Activity Based Costing System separates free and invaluable activities groups similar activities. Because of this property of Activity Based Costing System, reduces costs.?Activity Based Costing System provides more correct costing calculation for sale objects and thus enterprise management becomes available for profit analysis on the basic of product, customer and services. After that, the enterprises decide more strategically at their operations.?Inbalanced outcomes of general overhead costs for the 2006-2008 period, many non-relative activities with products and discontinued activities make the application of the Activity Based Costing System difficult.?Application of Activity Based Costing System shows differences in type, class, volume, location and concept of hotels.Keywords: Cost, Activity Based Costing, Traditional Costing Systems, Tourism, HotelEnterprises,