Application of Time Driven Activity Based Costing System (TDABC) in Hotels Sector in Jordan – Case Study
This study aimed to apply the Time Driven Activity Based Costing System (TDABC) at a first-class hotel in Jordan to calculate the cost of overnight service (rooms and suites). The study relied on the financial statements, statistical tables and personal interviews on calculating the cost of rooms and suites division. The study showed a range of results, including: (TDABC) is easier, more accurate than the traditional cost system applied at the hotels and it is able to separate between the used and unused capacity. There is an overvalued sales price, particularly the suites sale prices. The study concluded a set of recommendations; the most important are, it is preferable to reduce the prices of rooms and suites services, especially the service price of suites, because it is overpriced. The prices should not be determined primary according to the market price and the advantage of the view of rooms and suites. The recommendations also include that (TDABC) helps the hotel management to use the unused capacity, developing their business and increasing their market share.