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