Abstract
ABSTRACT In today’s competitive environment, the analysis of activities is not just about looking at the overall report of profit and loss but more in understanding which of the activities add value and which are identified as wastes. This study examines the implementation of Time-Driven Activity-based Costing (TDABC) to analyze the operations of restaurants and also explores its validity as an approach for mapping the value streams of the operational activities. For this purpose, a case study is planned to reprocess both direct and indirect costs of a restaurant using TDABC. Thus, an observation process is performed to gather the relevant data, besides investigating the case restaurant’s cost accounting system. In this paper, two analytical techniques (TDABC & VSM) are combined to identify both the true costs of the operational activities as well as distinguishing the non-value-added activities. The results have revealed that TDABC appears to be a very feasible approach for both setting the correct cost of operations in restaurants and mapping the source of value-added activities.
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More From: Journal of Quality Assurance in Hospitality & Tourism
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