COST AND MANAGEMENT ACCOUNTING PRACTICES OF 4 AND 5 STAR HOTELS IN KONYA PROVINCE

Abstract

In the tourism sector today, where competition is intensely felt and high risk and uncertainty are present, businesses need to effectively and efficiently use their resources to sustain their existence. Hotel busineses, established with high capitals, aim to increase their profitability by controlling costs in these challenging market conditions. Especially, hotel businesses facing situations such as seasonal fluctuations in demand and changing customer needs and expectations, need good management and accounting systems for both performance evaluation and strategic planning. At this point, the presence of management accounting, which provides all the financial and non-financial information needed by the managements and affects decision-making, is of great importance for hotel businesses. Thus, the aim of this study is to examine the management accounting practices of 4 and 5-star hotel businesses in Konya province and to determine their current situation. According to the findings of the research, it has been determined that 50% of the hotel businesses have a separate management accounting department, and 58.3% have a separate cost accounting department. In terms of costing approaches, 66.7% have adopted activity-based costing, 58.3% have adopted full costing approach, and the standard costing approach, at 33.3%, is relatively lower compared to others. Moreover, it has been found that the use of actual costing, budgeting activities, performance evaluation methods, and strategic management accounting practices have a high level of benefit for the businesses.