Application of the Concept of Target Costing in Hospitality
Bojana Novićević Čečević - Faculty of Economics, University of Niš, Trg Kralja Aleksandra Ujedinitelja 11, Niš, Serbia
Ljilja Antić - Faculty of Economics, University of Niš, Trg Kralja Aleksandra Ujedinitelja 11, Niš, Serbia
Jovana Milenović - Faculty of Economics, University of Niš, Trg Kralja Aleksandra Ujedinitelja 11, Niš, Serbia
DOI: https://doi.org/10.31410/tmt.2021-2022.93
Bojana Novićević Čečević - Faculty of Economics, University of Niš, Trg Kralja Aleksandra Ujedinitelja 11, Niš, Serbia
Ljilja Antić - Faculty of Economics, University of Niš, Trg Kralja Aleksandra Ujedinitelja 11, Niš, Serbia
Jovana Milenović - Faculty of Economics, University of Niš, Trg Kralja Aleksandra Ujedinitelja 11, Niš, Serbia
DOI: https://doi.org/10.31410/tmt.2021-2022.93
6th International Thematic Monograph - Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 2021/2022, Published by: Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, North Macedonia; ISSN 2683-5673, ISBN 978-86-80194-49-3; Editors: Vuk Bevanda, associate professor, Faculty of Social Sciences, Belgrade, Serbia; Snežana Štetić, full time professor, The College of Tourism, Belgrade, Serbia, Printed by: SKRIPTA International, Belgrade
Abstract: In recent decades, the service sector has become a fast-growing world economic activity, and hospitality organizations are a key element of the service sector. Providing high-quality services in this sector at lower prices than the competition is an important factor and the basic goal of companies’ business success. In order for hospitality organizations to achieve this goal, it is necessary to find an adequate way to calculate costs and determine the cost price of services provided. The application of modern costing methods enables hospitality organizations to increase profits, increase labor productivity, shorten service delivery time and reduce costs. One of the concepts of cost management in a given business environment is target costing. The concept is focused on reducing costs, primarily in the product design phase to the target amount. The paper analyzes the possibility of applying the modern concept - target costing in a hospitality company.
Keywords: Target cost; Cost price; Service sector; Hospitality
REFERENCES
Al-Qady, M. & El-Helbawy, S. (2016). Integrating Target Costing and Resource Consumption Accounting. The Journal of Applied Management Accounting Research, 14 (1), 39-54.
Ansari, S. L., Swenson, D. & Bell, J. (1997). Target Costing: The Next Frontier in Strategic Cost Management. USA: Mac Graw-Hill Inc.
Ansari, Sh., Bell, J. (2006). A Template for Implementing Target Costing. Cost Management; 20 (5): 20-27.
Antić, Lj., Stevanović, T. & Novićević Čečević, B. (2019). Koncepti obračuna i upravljanja troškovima u lean poslovnom okruženju. Ekonomski fakultet Niš.
Atkinson, R. Banker, R. Kaplan. & S. M. Young. (1997). Management Accounting (Upper Saddle River). New Jersey: Prentice-Hall.
Avlonitis, G. J. & Indounas, K. A. (2006). Pricing Practices of Service Organizations. The Journal of Services Marketing, 20(5), 346-356.
Clark, C. (1960). The Concitions of Economic Progress. Mc Milan and Cooperation Ltd. London.
Cooper, R. & Slagmulder, R. (1997). Target Costing and Value Engineering. Productivity Press, Portland OR. Available at: http:/www.tx.ncsu.edu/jtatm/volume2issue4/articles/hergeth/39 02 full.pdf
Cooper, R. (2002). Target costing for new-product development: product-level target costing. Journal of Cost Management, 16 (3), 5-12.
Ćerović, Z. (2003). Hotelski menadžment. Fakultet za hotelski i turistički menadžment, Opatija.
Drury, C. (2008). Management and Cost Accounting. South- Western, G. Canale & Italy Business.
Fessler, G. B. Allan (1939). Production Primary, Secondary and Tertiary. Economic Record, Melbourne.
Garrett, K. Target costing and lifecycle costing. ACCA, Available at: https://www.accaglobal. com/hk/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/target-lifestyle.html
Garrison, R. & Eric, W. (2008). Managerial Accounting. Singapore.
Grove, S. J., & Fisk, R. P. (1997). The impact of other customers on service experiences: a critical incident examination of “getting along”. Journal of retailing, 73(1), 63-85.
Gržinić, D. (2007). Concepts of service quality measurement in hotel industry. Concepts of Service Quality Measurement in Hotel Industry, 1, 81-98.
Hiromoto, T. (1988). Another Hidden Edge-Japanese Management Accounting, Harvard Business Review, 66(4), 2-26.
Holjevac, I. A. (2002). Upravljanje kvalitetom u turizmu i hotelskoj industriji. Fakultet za turistički i hotelski menadžment.
Horngren, C. Foster, G. & Datay, S. M. (2006). Cost Accounting: Managerial Emphasis. 12thed, Pearson Prentice Hall.
Kalač, B., Elfić, E. & Ujkanović, E. (2010). Značaj usluga u savremenoj privredi i društvu. University Review, 9, 50-61.
Kocsoy, M., Gurdal, K. & Karabayir, M. E. (2009). Target Costing In Turkish Manufacturing Enterprises. Problems and Perspectives in Management, 7 (1), 197-207.
Kotler, P. (1997). Marketing Management, Prentice Hall.
Novićević Čečević, B. (2016). Upravljačko-računovodstvena podrška menadžmentu preduzeća u lean poslovnom okruženju. Doktorska disertacija. Niš: Ekonomski fakultet.
Novićević, B., Antić, Lj. & Stevanović, T. (2013). Koncepti upravljanja troškovima u funkciji realizacije konkurentskih strategija. Niš: Ekonomski fakultet.
Official Gazette of the Republic of Serbia (2011). National Employment Strategy for the period 2011-2020. Belgrade.
Pirija, D. (2003). Standardni u turističkom ugostiteljstvu. Visoka poslovna škola za turizam, Šibenik.
Ratkajec, D. (2008). Ugostiteljstvo. Školska knjiga, Zagreb.
Sekerez, V. (2005). Koncept upravljanja na bazi ciljnih troškova, zbornik sa XXXVI simpozijuma Saveza računovođa i revizora Srbije, Računovodstvo i poslovne finansije u savremenim uslovima poslovanja- stanje i perspektive, Zlatibor.
Statistical Office of the Republic of Serbia (2020), Statistical Yearbook of the Republic of Serbia. Belgrade.
Swenson, D., Ansari, S., Bell, J. & Kim, I., (2003). Best Practices in Target Costing, Management Accounting Quarterly, 4(2), 12-17.
Vargo, S. & Morgan F.W. (2005). Services in Society and Academic Thought: An Historical Analysis. Journal of Macromarketing, 25(1), 42-53.
Zengin, Y. & Ada, E. (2010). Cost management through product design: Target costing approach, International Journal of Production Research, 48(19), 5593-5611.
Keywords: Target cost; Cost price; Service sector; Hospitality
REFERENCES
Al-Qady, M. & El-Helbawy, S. (2016). Integrating Target Costing and Resource Consumption Accounting. The Journal of Applied Management Accounting Research, 14 (1), 39-54.
Ansari, S. L., Swenson, D. & Bell, J. (1997). Target Costing: The Next Frontier in Strategic Cost Management. USA: Mac Graw-Hill Inc.
Ansari, Sh., Bell, J. (2006). A Template for Implementing Target Costing. Cost Management; 20 (5): 20-27.
Antić, Lj., Stevanović, T. & Novićević Čečević, B. (2019). Koncepti obračuna i upravljanja troškovima u lean poslovnom okruženju. Ekonomski fakultet Niš.
Atkinson, R. Banker, R. Kaplan. & S. M. Young. (1997). Management Accounting (Upper Saddle River). New Jersey: Prentice-Hall.
Avlonitis, G. J. & Indounas, K. A. (2006). Pricing Practices of Service Organizations. The Journal of Services Marketing, 20(5), 346-356.
Clark, C. (1960). The Concitions of Economic Progress. Mc Milan and Cooperation Ltd. London.
Cooper, R. & Slagmulder, R. (1997). Target Costing and Value Engineering. Productivity Press, Portland OR. Available at: http:/www.tx.ncsu.edu/jtatm/volume2issue4/articles/hergeth/39 02 full.pdf
Cooper, R. (2002). Target costing for new-product development: product-level target costing. Journal of Cost Management, 16 (3), 5-12.
Ćerović, Z. (2003). Hotelski menadžment. Fakultet za hotelski i turistički menadžment, Opatija.
Drury, C. (2008). Management and Cost Accounting. South- Western, G. Canale & Italy Business.
Fessler, G. B. Allan (1939). Production Primary, Secondary and Tertiary. Economic Record, Melbourne.
Garrett, K. Target costing and lifecycle costing. ACCA, Available at: https://www.accaglobal. com/hk/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/target-lifestyle.html
Garrison, R. & Eric, W. (2008). Managerial Accounting. Singapore.
Grove, S. J., & Fisk, R. P. (1997). The impact of other customers on service experiences: a critical incident examination of “getting along”. Journal of retailing, 73(1), 63-85.
Gržinić, D. (2007). Concepts of service quality measurement in hotel industry. Concepts of Service Quality Measurement in Hotel Industry, 1, 81-98.
Hiromoto, T. (1988). Another Hidden Edge-Japanese Management Accounting, Harvard Business Review, 66(4), 2-26.
Holjevac, I. A. (2002). Upravljanje kvalitetom u turizmu i hotelskoj industriji. Fakultet za turistički i hotelski menadžment.
Horngren, C. Foster, G. & Datay, S. M. (2006). Cost Accounting: Managerial Emphasis. 12thed, Pearson Prentice Hall.
Kalač, B., Elfić, E. & Ujkanović, E. (2010). Značaj usluga u savremenoj privredi i društvu. University Review, 9, 50-61.
Kocsoy, M., Gurdal, K. & Karabayir, M. E. (2009). Target Costing In Turkish Manufacturing Enterprises. Problems and Perspectives in Management, 7 (1), 197-207.
Kotler, P. (1997). Marketing Management, Prentice Hall.
Novićević Čečević, B. (2016). Upravljačko-računovodstvena podrška menadžmentu preduzeća u lean poslovnom okruženju. Doktorska disertacija. Niš: Ekonomski fakultet.
Novićević, B., Antić, Lj. & Stevanović, T. (2013). Koncepti upravljanja troškovima u funkciji realizacije konkurentskih strategija. Niš: Ekonomski fakultet.
Official Gazette of the Republic of Serbia (2011). National Employment Strategy for the period 2011-2020. Belgrade.
Pirija, D. (2003). Standardni u turističkom ugostiteljstvu. Visoka poslovna škola za turizam, Šibenik.
Ratkajec, D. (2008). Ugostiteljstvo. Školska knjiga, Zagreb.
Sekerez, V. (2005). Koncept upravljanja na bazi ciljnih troškova, zbornik sa XXXVI simpozijuma Saveza računovođa i revizora Srbije, Računovodstvo i poslovne finansije u savremenim uslovima poslovanja- stanje i perspektive, Zlatibor.
Statistical Office of the Republic of Serbia (2020), Statistical Yearbook of the Republic of Serbia. Belgrade.
Swenson, D., Ansari, S., Bell, J. & Kim, I., (2003). Best Practices in Target Costing, Management Accounting Quarterly, 4(2), 12-17.
Vargo, S. & Morgan F.W. (2005). Services in Society and Academic Thought: An Historical Analysis. Journal of Macromarketing, 25(1), 42-53.
Zengin, Y. & Ada, E. (2010). Cost management through product design: Target costing approach, International Journal of Production Research, 48(19), 5593-5611.
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