ACTIVITY-BASED COSTING IN THE RESTAURANT INDUSTRY: WHAT’S PAST IS PROLOGUE

Authors

Carola Raab, William F. Harrah College of Hotel Administration, University of Nevada, Las Vegas, NV
Dina Marie Zemke, William F. Harrah College of Hotel Administration, University of Nevada, Las Vegas, NV

Type of Submission

Refereed Article

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.

DOI

10.1080/10913211.2016.1239488

Recommended Citation

Raab, Carola and Zemke, Dina Marie (2016) "ACTIVITY-BASED COSTING IN THE RESTAURANT INDUSTRY: WHAT’S PAST IS PROLOGUE," Journal of Hospitality Financial Management: Vol. 24: Iss. 2, Article 5.
DOI: 10.1080/10913211.2016.1239488
Available at: https://scholarworks.umass.edu/jhfm/vol24/iss2/5