COSTING AND MANAGEMENT CONTROL PRACTICES IN THE HOTEL SECTOR: CASE STUDY
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Abstract
This study addresses the limited research on management accounting in the hotel sector, an industry of considerable economic significance characterised by distinctive operational and managerial features. The study aims to characterise costing and management control practices in a 5-star hotel and to examine the extent to which managers use management accounting information to support decision-making processes. A case study methodology was adopted, combining open-ended interviews with direct observation of daily operations over a six-month period. The hotel applies the Uniform System of Accounts for the Lodging Industry (USALI) and uses direct costing for service valuation and performance evaluation purposes. The findings reveal that budgeting constitutes the main management accounting technique employed by the organisation, while the dual accounting system promotes integration between financial and management accounting. Management control practices are primarily focused on monitoring inventories, pricing, financial results, and cash flows. The results also indicate that managers possess a strong understanding of management accounting information and actively use it to support decision-making and budgetary control. This study contributes to the literature by providing empirical evidence on the implementation of management accounting systems in the hotel sector, thereby helping to bridge the gap between theoretical developments and managerial practice.
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