Application of ABC in hot spring country inn

Wen Hsien Tsai, Jui Ling Hsu, Chia Hsin Chen, Yu Wei Chou, Sin Jin Lin, Wan Rung Lin

Research output: Contribution to journalArticlepeer-review

5 Scopus citations


This paper implements activity-based costing (ABC) method to analyse the operational costs structure of a hot spring country inn in the Yang- Ming-Shan area of Taiwan. ABC method was used to compute the lodging, hot spring use and meal serving costs per customer. The result shows a real cost structure in B&B industry where study in this non-traditional lodging is rare in literature. In addition, we find that the major advantage of using ABC of a country inn is that it gives better insight into the customer costs for each market segment in order to offer more accurate cost information for innkeepers to make better managerial decision. Also, we compare the ABC with the traditional costing method, and conclude that the ABC method is a more suitable and appropriate tool than traditional accounting method in a country inn.

Original languageEnglish
Pages (from-to)152-174
Number of pages23
JournalInternational Journal of Management and Enterprise Development
Issue number2
StatePublished - Feb 2010


  • ABC
  • Activity-based costing
  • Cost analysis
  • Country inn
  • Enterprise development
  • Hot spring
  • Non-value-added activities
  • Operational costs structure


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