The challenge of working efficiently and achieving business excellence in current conditions requires companies to use the necessary tools to successfully cope with the instability of an increasingly turbulent environment.
The last decade has witnessed a profound process of change that has affected the structures in which companies were being founded, which have thus come to present a physical and conceptual configuration significantly different from the traditional one.
To meet the informational requirements that are now beginning to be proclaimed, for the sake of correct decision making, traditional Management Accounting systems have become obsolete.
This paper claims the need to restructure the current systems in hotel facilities, proposing the Activity-Based Cost System as an alternative. In order to achieve a comprehensive system, it is interrelated with different management procedures and tools using the philosophy of a process approach, resulting in the systematic transformation of information into action.
Keywords: processes, threads, activities and cost drivers
INTRODUCTION
Going into the study of the ABC system in service entities, especially in the existing applications in the hotel sector at a universal level, is the fundamental purpose of this work as they will serve as a reference for the design proposal of the system itself.
The proposed objectives are:
- Characterize the ABC in service companies Present the characteristics of the hotel sector Evaluate the Cost System in the hotel industry Study the main existing applications of ABC in the hotel industry Design the proposal of the ABC system in the hotel sector.
DEVELOPING
- The ABC System in service companies
1.1 Characterization of the service sector
The concept of service has evolved with the incorporation of essential elements, where the ISO Standards already propose results obtained by the activities that are fostered at least by the interest of two people to provide the service to one of them.
The ABC System emerged in industrial companies, but today there are many service entities that are implementing this costing with the obtaining of favorable benefits.
It is clear that due to the type of sector, in industrial companies the needs to measure costs prevailed first, which is why they already had cost systems, which became obsolete due to changes in products, customers and business processes, throwing distortions in decision making.
Both types of companies have customer service as their main objective in their strategies, however there are differentiating characteristics between both, as shown in the following graph:
Scheme 1. Representation of the process in the sectors
Frequently the output in a service company has a certain degree of subjectivity, for example: quality of service, relevance of the information, or degree of satisfaction, but as in productive companies the results are possible due to an accumulation of activities that are made, which cost money. On the other hand, it generally coincides that the product is consumed at the time it is produced, acting on the customer himself who is considered as the "entry" to be transformed into a product with added value at the end of the process of providing a service "departure". Therefore, the product obtained is the same, that is, the customer, to whom the added value has been provided with a specific service provision, unlike productive companies where the input undergoes certain transformations during the production cycle.
However, it is worth noting that there are many processes that have a sequence of activities of an intangible nature, which makes the calculation of their costs more difficult. Another aspect is the operation control system, which from the accounting point of view becomes more complex due to the diversity of activities, and in turn, as these are not commonly repetitive, it becomes cumbersome to establish a series of standard norms to measure the management of operations (for example, in a restaurant, two requests for the same type of dish, but when providing the service, its qualities may vary from one customer to another).
If the types of inventories are analyzed, it is not possible to have stocks of work performed or services rendered accumulated in the service sector, high cost inventory in the productive sector.
When carrying out a quality analysis, it is more objective to carry it out in productive companies from the beginning of the process, because in service companies, sometimes, it is not possible to assess quality until the moment the service is performed and even, the evaluations are usually subjective because the facilities can have all the infrastructure conditions foreseen but the behavior of human capital is a key factor in the satisfaction of a user for the service provided.
However, the existing conditions in most service companies were different, mainly motivated by the scarcity of competing markets that had little demand for information on costs of products, customers and processes, so they operated for decades without systems cost (situation that was not the same from the point of view of financial accounting), although they did have the need for operational control, establishing budgets (rather rigid) for the department or responsibility center, comparing the actual results with those budgeted.
Most of the traditional systems dedicate a large part of their effort to the valuation of stocks, a situation that given the intangibility (the services cannot be seen, tasted, felt, heard or smelled before being acquired); inseparability (they are produced and consumed simultaneously), variability (their quality depends on the provider and how much, where and how it is done) and perishable nature of the service (they cannot be transported, nor stored for later use or sale), are not the more convenient. Although technological progress produces changes in the behavior of cost elements, in this sector the impact on the staff structure is different since the human presence is an active entity in the processes,This causes the improvement of personnel management and the search for more adequate systems to control their activities, especially since the customer pays and must perceive the added value.
In this process, the service triangle is highlighted, which represents the relationship between the strategy, the people, the system and the clients in the organization, where the client is the center of all decisions and actions, due to the specific characteristics of the sector. The design of the service package establishes the most suitable combination based on the expectations of the clients of tangible and intangible attributes. This package can be: unique (total customization, the client determines the how, what and where of the service); selective (considerable customization: although various parts of the service package are standardized the customer can still choose from a wide variety of options); restricted (limited customization,Most of the service package is standardized in such a way that the customer can choose between few options) and generic (little or no customization).
The types of attributes can be: support resources (the necessary physical resources), service goods (complementary physical resources); explicit services (essential or intrinsic characteristics of the service) and implicit services (extrinsic characteristics of the service or psychological benefits). In addition, the design of the supply system allows choosing the physical elements and the workforce that are used to produce the service, the ways in which consumers view the attributes: an overrated attribute or a single attribute with minimal limits (primary importance is given to an attribute, while the others satisfy at least the minimum required) and the balanced average of attributes, that is, they compensate. Over the past two decades,The competitive environment for most service companies has become as challenging and demanding as for industrial companies, requiring relevant information to improve the quality, efficiency of the activities they carry out to improve their processes and have more clarity of the cost and the profitability of your products, services and customers.
Every production or service process consists of different resources. On a general level of analysis, they could be classified into workforce, work means and work objects. Other authors particularize or further specify these general elements, until they are detailed in the so-called “7 M ”, terms defined in English: material (materials and raw materials); men (labor forces or men; machine (equipment); management (management or managerial activity); money (financing) and marketing (marketing or marketing activity).
Also, lately due to its importance, information is treated as a resource, considering it as the most important resource of a productive or service system, with the difference that the resource is exhausted, and the information is enriched. The existence of these resources by itself does not determine that the system can work and provide the results demanded by the medium. For the study of the organization of production and services, it is assumed that it is expressed as the system of methods, procedures and measures based on existing technology, to allow the rational and harmonious combination of the elements of the process in time and space, in order to maintain a relationship with the environment that surrounds it and to fulfill the tasks generated by the demands of customers operating in the market segment,to which the company is directed or inserted to achieve an improvement aimed at the system in an integral way.
The organization should not limit itself to the aspect of transformation, as this is closely related to the input of resources and the output of results, so there is a relationship between the system and the environment in terms of the use of what is necessary and, therefore, links are established with suppliers, in the same way that the results provided by the system are closely linked with consumers, and the relationship with them will not end with the act of collection-sale to a client in a market segment until the recruitment of this client as a permanent consumer of the products offered by the system; with its consequent after-sales service, including the necessary feedback for the improvement of the product.
In general, according to Kaplan and Cooper (1999), service companies are ideal for the application of an ABC system, even more than industrial companies. In the first place, because to carry out activities in the short term, it is necessary to have a stock of the resources that are required, with no major fluctuations; virtually their costs are generally indirect and appear to be fixed; They have from few direct materials to none at all, and most of their staff provide indirect and non-direct support to services and clients, not having an adequate reference for measuring these costs.
The operational feedback provides data on the costs incurred in each of its organizational units, as well as other performance measures such as quality and response times. On the other hand, the analysis of the process from beginning to end from an ABC perspective highlights the cost of providing basic services to clients, an aspect that is not obtained with detailed systems by cost items that only process information at the center level responsibility and cost.
The construction of an ABC model is virtually identical for both types of companies, since they need to link the costs of the resources they supply, with the income obtained by the products and individual customers who make use of these resources.
Ripoll and Tamarit (1996), have carried out a search and analysis in the magazines with the greatest circulation in English-speaking countries on the articles of ABC in the Anglo-Saxon area. The result in the area of empirical research, the number 8 represents services (telecommunications, hospitals, financial services, insurance, consulting and general).
To put ABC into practice in service companies, at least two important decisions must be made:
- decide if the system is going to work independently from the rest of the systems that generate information in the company, or be integrated with them Decide whether from the beginning all employees are involved in the system even though the initial cost of the investment is increase. It is valid to bear in mind that this decision will be strategically important to be able to obtain relevant information, which allows forming a vision of its operation in order to use it as support in the decision-making process, both at the global level of the company, as well as at the desired level.
Practice has shown that knowledge of the cost of activities, business processes, products and customers, is essential for decisions related to the management of product and customer services (can be market segments), the value chain in the provision customer services, and the preparation of the operating and financial budgets of the entity. These factors are key to the success of the sector. Specifically, the object of study is framed within the tourism sector in Cuba, so some characteristics of it will be analyzed in the next section.
1.2. The hotel sector
Tourism is considered a multisectoral activity that requires the concurrence of various productive areas -agriculture, construction, manufacturing- and the public and private sectors to provide the goods and services used by tourists. This activity does not have clearly determined limits or a tangible product as explained above, but is the production of services that varies depending on the countries, since the environment, customs, climate, among others, influence its development.
They say that on October 27, 1492, Admiral Christopher Columbus arrived in Cuba on the country's northeastern coast and, dazzled by its beauty, exclaimed: "This is the most beautiful land that human eyes have seen!" And it became, in fact, the first tour operator on the island. Unquestionably, Cuba, as a tourist destination, has a series of inherited attributes that make up a rich historical and cultural heritage that represent an important starting point for tourism development. Its natural beauties (beaches, underwater attractions, country and mountain landscapes, ecological reserves, all still far below its sustainable capacity for exploitation), as well as its climate, are just a part of them, which are complemented by its location and easy access by air and sea.
Important elements have been incorporated into this wealth of attractions of the country in the almost forty-six years of the Revolution: educated, cultured and supportive population, high levels of health at the levels of first world countries, recognized prestige as a sports power, safe social climate and will to conserve the environment. Likewise, the infrastructure created in highways, airports, electrical and communications networks incorporates another group of attractions that enhance the Cuban tourism product.
This group of indisputable inherited advantages has been complemented by elements of economic policy and government support mechanisms. This has made it possible to exploit these advantages and consolidate a positioning of the sector in the international market, especially within the Caribbean region, where it already occupies the second largest tourist destination.
The evolution of national tourism in Cuba has gone through different periods, which can be grouped into three major stages: before 1959, from that year to the mid-1970s and from that time to date.
In the development of tourism, the hotel constitutes the basic commercial unit. Leonie Raises (1982)that this is the congruent unit par excellence of the Tourist Material Technical Base. It is a conjunction of basic and complementary services, offering marketing a rounded and tangible product concept with a brand, product and image, as well as the possibilities of interaction with other elements of its environment.
The international classification of hotel establishments according to Lattin (1975), can be grouped as follows:
- According to its category: Luxury Hotel (5 stars), First Hotel “A” (4 stars), First Hotel “B” (3 stars), Second Hotel (2 stars) and Third Hotel (1 star). According to the use to which it is intended: commercial or transit hotel, vacation hotel, residential hotel and the motel or motor hotel.
For the development of the general activity of a hotel requires the existence of a group of departments that affect its performance in its operation, requiring an adequate interrelation, cooperation and coordination in such a way as to guarantee work in the form of system. The failure of any department or any person in a department means unsatisfactory service and a disgruntled customer.
This need for individual and departmental cooperation further enhances the inevitability of understanding the human element, not only from the consumer's point of view, but also from the employee's point of view. No other industry demands that degree of mutual effort. The hotelier cannot follow the trend of mechanizing all his operations and functions, as his truly personal services cannot be mechanized or automated. Of course, not all positions provide guest contacts, but those who do ensure employees a relationship with people of all walks of life. Each person who enters a hotel will offer employees an opportunity to learn something about human nature and the challenge of providing a service that enhances the stay of the guest in the establishment.The hotel industry offers the worker not only responsibility for his product, but also the added satisfaction of checking customer satisfaction.
The hotel company is characterized by the large volume of indirect costs motivated by different factors, among which it stands out, the large investments in fixed assets, which brings with it high expenses for depreciation, security, maintenance of the installation, insurance; the effects of the competitive environment that causes high costs in advertising and promotion necessary to stay in the market and others related to the wide range of support services that are activities that are generated within the value chain, being obsolete and arbitrary the methods of control and distribution of indirect costs currently used in most hotel chains by the system they have in place.
Most of the hotels have an Accounting System (Uniform System) and Integrated Systems (computer systems, such as: Interhotel 2000 and SIHOT) that allow operation.
The study of their objectives, concepts that they use and characteristics allow to determine the main advantages and limitations of the same due to the needs and demands of the current hotel industry, which are shown below:
Table 1. Advantages and limitations of the systems in force in hotels
Only by fully incorporating capacity-based costing will they be able to measure and manage their cost structures, service offerings, and customer relationships, requiring different systems for operational control and for measuring costs and performance. profitability of services and clients.
This very need for change has already been demonstrated in some way in some studies outlined in the hotel business, some of which are treated in depth by Sánchez and Rocafort (2002), which is why it will be specified in some elements due to the importance that they have as a basis for this research. They can be grouped into two groups:
- Contributions focused on the analysis of benefits per customer: Dunn and Brooks (1990); Nordling and Wheeler (1992); Noone (1996) and Noone and Griffin (1997). Contributions oriented to the calculation of costs: Rubio (1995); Berts and Kock (1995); Ilic (2000); Burgess and Bryant (2001); Sánchez and Rocafort (2002) and Garbey (2002).
Certain criteria on the mentioned applications are presented below:
Table 2. Criteria on existing contributions in the hotel sector
Explanation Phase No. Ι: Location of the processes
This phase is developed in order to select the hotel's processes, determining the sub-processes that comprise it and the activities involved, taking into account the following stages, steps and tasks:
Stage No. Ι-1: Preliminary analysis of the process design Step No. Ι-1.1: Team formation and project planning
Task No. Ι-1.1.1: Form the interdisciplinary work team
It includes the formation of an interdisciplinary work team (selection of the team from the panel of experts, using the Expert Method, described by Goicoechea (1982) and Sánchez (1984)), made up of no more than seven people (Trischler, 1998; Amozarrain, 1999, Zaratiegui, 1999), who must have knowledge of management systems and tools; have the presence of an external expert and appoint the project coordinator.
For the selection of experts, the so-called competition coefficient (K) is used, which is calculated as follows: K = (Kc + Ka) / 2, where:
Kc: is the coefficient of knowledge or information that the expert has about the problem.
Ka: is the coefficient of argumentation or justification of the criteria for each expert.
Both coefficients are fundamentally calculated on the expert's own valuation, although it could be done based on the criteria of the members of the group of potential experts or of their immediate superior manager.
The competence coefficient (K) of the expert is determined by averaging the score corresponding to each of the parts of the questionnaire, and must be in a range of:
0.7 ≤ K≤1 , with the aim of making a rigorous selection of professionals who are evaluated as experts.
The number of experts to be selected must be ≤ α * n according to Sánchez (1984), where: α - number between 0.7 and 1, prefixed by the researcher n - elements that characterize a certain object of study
Given the variable degree of knowledge of potential experts on the elements of the object of study, the following classification is proposed for the value of α :
Table 3. Determination of α
Source: self made
To determine K, the expert's competence questionnaire is applied, which is an extremely useful instrument, particularly when it is required to collect information on the experience and knowledge of a group of people related to the object of the investigation.
Once the questionnaire has been applied, its structure allows the collection of information to determine K, through two phases. The first (Kc), proposes to evaluate the characteristics that identify the expert, and the assigned score is obtained through the Hierarchical Analytical Process method. In the second phase (Ka), the assessment is carried out in relation to the sources that contribute to the knowledge of the expert that endorse their condition of specialist in the subject. In this case, the values assigned to each of the sources are quantified by applying the method of functions, according to García and Cuétara (1996). With the information collected, the data is processed using the Expert Module using Decisoft software (2000)and the competence coefficient K of the expert is determined by averaging the score corresponding to each of the parts of the questionnaire. Task No. Ι-1.1.2: Establish a work schedule
It consists of defining a work schedule, in which the objective of each session is present, evaluating the degree of progress of the project, detecting difficulties, proposals for solutions and guidelines for the continuity of the investigation.
Step No. Ι-1.2: Identification of potential hotel processes and activities
In this step, it will be collected, through a brainstorming session, a list of all the processes and activities carried out in the hotel, taking into account that: the name assigned to each process must be simple and representative of the concepts and activities included in it, all the activities carried out must be included in some of the listed processes and it is recommended that the number of processes range between 10 and 25 depending on the type of company (Trischler, 1998; Amozarrain, 1999). To facilitate the development of this step, a questionnaire is used on the processes and activities involved. In addition, a glossary of terms specific to the sector is being written to facilitate the understanding of the analysis of the proposed system.
Step No. Ι-1.3: Prioritization of processes
Task No. Ι-1.3.1: Determination of hotel processes
Once the list of the company's processes has been established by the project team, it must be presented to the Board of Directors for review and approval. Subsequently, to verify the agreement between those involved and select the processes, the
Kendall's Coefficient Method . In the case of a concordance, it is checked whether this is accidental or not, performing the Chi Square Hypothesis Test. Task No. Ι-1.3.2: Selection of operational, strategic and support processes
It is obvious that all the processes that resulted from the previous task constitute relevant processesof the hotel. However, with the intention of making a more detailed analysis from the point of view of the system, it is suggested, classify them into priority processes (operational processes) and in secondary processes (strategic processes And support), previously accepted generic classification.
Using the abstraction technique: finding the characteristicsIt can be identified by the characteristics of each process and the concepts of this classification, the identification of each process in them, since it allows to distinguish the general and particular characteristics of an object, fact or phenomenon; distinguish its essential characteristics and establish relationships between them, the whole and the parts.
Task No. Ι-1.3.3: Relationship of processes with strategic objectives
It is advisable to apply the matrix of strategic objectives / impact on customers and processes (Amozarrain, 1999).
The project team must carry out an assessment based on the calculation of the impact on the process and the impact on the client.
Once the total points for the processes have been calculated, taking as a reference the highest points, they must coincide with the operative processes or keys selected in the previous task, since the secondary processes will be grouped around the priority ones. The design or redesign of all the processes (one by one) will be carried out, starting in descending order, which will be those comprised in the following interval based on Nogueira (2002):
V med I * R max * NO ≤ TP ≤ V max I * R max * NO where:
NO: number of strategic objectives.
TP: total score of the process.
V med I: mean value of impact on the process.
V max I: maximum impact value in the process.
R max: maximum impact on the customer.
Step No. Ι-1.4: Appoint the person responsible for the process
Once the processes have been selected according to the classification, the project team appoints a person responsible for each of them, delegating the development of the subsequent stages and, consequently, the success of the project to these people. Stage Ι-2: Design or strategic redesign of processes
Step Ι-2.1: Constitution of the work team
The person in charge of the process will be in charge of selecting those people who in their opinion can contribute more during the design or strategic redesign of the process, taking into account their experience in the activities included, their creative and innovative capacity and that there is at least one person for each one of the departments that carry out activities in the process. It is recommended to include someone outside the management of the process who acts as a facilitator, has training in this matter and masters the tools of group work.
Step Ι-2.2: Delineate the process and threads
In order to manage the processes, it is necessary to carry out a more detailed deployment comprising the following tasks:
Task No. Ι-2.2.1: Preparation of the Technical Sheet of the processes
The preparation of a technical sheet includes elements of the process that are mentioned below: name, person in charge, type of process, purpose, objectives, suppliers, clients, inputs, outputs, other stakeholders involved, content of the process, beginning and end of the process, threads, processes, and related threads.
Task No. Ι-2.2.2: Determination of the threads
In those processes that, to fulfill their purpose, need to carry out multiple activities with different objectives, it is more convenient from the point of view of analysis to divide the processes into well-defined parts to isolate the problems that may arise and enable a personalized treatment within the same process.
It is very important to define the scope of the business process under study and its relationship with other processes that the organization uses to plan, execute, review and adapt its behavior (PDCA cycles), so that everyone agrees on the work to be done. To carry out this task it is recommended to use the METAPLAN technique, Amozarrain (1999).
Task No. Ι-2.2.3: Rationalization of activities in each process and sub-process
Taking as a reference the initial questionnaire on processes and activities prepared from Step No. I-1.2, the questionnaire for the description of activities in the processes is proposed and constant interviews with employees are carried out in order to determine which activities are involved. will be paid for in the processes. Logically, the main objective is to be able to group some of them or break down a specific activity, taking into account that there may be activities that were identified and that are rather classified as functions or tasks. In addition, it must be taken into account that the activities that are defined must involve significant costs so as not to make unnecessary subsequent steps since it is not the objective to make a cost accuracy target as stated by Kaplan and Cooper (1999), but to design a simple ABC System. For this task the abstraction technique will be applied: search for the counterexample, which is very useful to reveal the essence of the content of the activity, since it helps to separate the essential from the secondary.
Task Ι-2.2.4: Coding the activities
To facilitate the work of the remaining phases, it is necessary to code the activities, so the following code structure is proposed:
- represents the process, that is, a strategic, operational or support process. represents a thread that is contained in the process. represents the symbol that separates the activity number from the process and sub-process name. represents the number of the activity.
Example: in the Accommodation Operational Process, there is the Reception Sub-Process and the activity is defined: make a reservation, therefore, the code would be: OAr-3. Task No. Ι-2.2.5: Preparation of the activity dictionary
Once a first list of the activities found in each process or sub-process has been drawn up and taking into account the description questionnaire of the activities in the processes, a dictionary of activities must be prepared that has an elementary definition of each one, with their objectives and tasks, in such a way that the phases of the task life cycle are fulfilled: planning, carrying out, checking and acting (Trischler, 1998). For this, the abstraction technique is applied: learning to argue, which is very useful when it is required to synthesize the information with elementary words based on the approach of personal criteria, as well as the confrontation, taking a position and defending those criteria before the group, asking different questions, such as: what is it? how is it? why is it? and what is it for?
Task No. Ι-2.2.6: Preparation of the As - Is diagram of the processes and / or sub-processes The As - Is process diagram (as it is) serves to graphically represent the work or information flow, so that the team members have better visibility of the process and understand the sequence of it. This diagram shows the steps to follow to produce the output and to document the policies, procedures and work instructions in use.
Step No. Ι-2.3: Analysis of added value
All activities are classified according to Porter's (1985) classification. Afterwards, each of them is analyzed from the internal and external perspectives, analyzing the interest groups involved in the hotel.
In this step, the criteria of Kaplan and Cooper (1999) were taken into account, where they argue that the money saved by improving the efficiency of a value-added activity is as valuable as the money saved by improving the efficiency of a non-value-added activity. Therefore, after classifying them, taking into account that the proposed System is ABC, it is decided not to eliminate any activity in this step and to expose the suggestions to analyze the opportunity to reduce costs and improve processes of the activities, presented by the authors, for a later continuity of future research, in which the main objective is the ABM 29.
After having explained the first phase, now corresponds the presentation and analysis of the Auxiliary Model of Phase II: Identification of the cost elements in each process.
In this phase, the cost elements of the activities in each process are identified; in this way the activities become the core of the model, taking into account the following stages, steps and tasks:
Stage No. II-1: Analysis of the primary and support activities Step No. II-1.1: Classify each activity of the operational, strategic and support processes into primary and support activities
In this step, the activities are analyzed in each of the processes, to be classified as primary and support, taking into account the concept of Porter (1985). In addition, the concept of Brimson (1991) is taken into account, which states: "… secondary activities are inputs to primary activities", although it cannot be absolute, because in some cases it may be that to carry out a primary activity it is necessary to carry out a secondary activity, but in others it is not necessary It fulfills this relationship, as happens, for example, in the case of cleaning rooms, which is carried out both for the clean empty, dirty empty and for the occupied room.
Task No. II-1.1.1: Identify the inputs and outputs or activity measures of each of the activities
In this step, all the inputs and outputs of each of the primary and secondary activities are identified, that is, the inputs necessary for each activity to begin and the outputs obtained from each of them and that involves the resource consumed by part Of the same.
Task No. II-1.1.2: Identify the nature of the cost of each activity
The nature of the costs of the activities is identified, taking into account its component elements, that is, direct materials, direct labor and costs.
indirect (indirect material, indirect labor and other costs), thus knowing how the costs of all activities will be formed. Task No. II-1.1.3: Variation with respect to the level of activity
Activities are analyzed in relation to their fluctuations with respect to the level of activity, that is, if they are: fixed, variable or mixed, Ripoll and Balada (2001).
Task No. II-1.1.4: Identification of primary documents
The primary document is identified for each activity, that is, the base document that will serve to record the activity in the accounting.
Stage No. II-2: Classification of activities at the level: unit, batch, product or line and company Cooper and Kaplan (1991).
Stage No. II-3: Choice of cost drivers
For the costs of the activities that will be assigned to other activities, the cost - drivers should be chosen, which best respect the cause-effect relationship between:
Resource Consumption Assigned Activity Activity
Likewise, among those that meet the above condition, the one that is easier to measure and identify should be taken into account.
A peculiarity in the proposed system is that there may be a group of activities that will contribute the same cost - driver or cost generator. This occurs because these activities are interrelated with each other based on the same purpose, and where the selected generator goes from activity to activity, that is, the cost - drivers are chosen, which will respect more the cause-effect relationship, that is, the that allow more effectively to quantify what is the percentage of the costs of the activities assigned to each activity. For this reason, activities that in a first analysis have a cost - driver, can later be changed by another.
There are also activities that correspond to a single activity and therefore, it is not necessary to use cost - drivers to assign the cost to said activity, since the assignment occurs directly to the one that corresponds.
Step No. II-3.1: Election of the cost drivers of the secondary activities of the Strategic, Operational and Support Processes that will be assignable to the primary activities of each of the processes to which it belongs
In effect, within each secondary activity that is carried out in the Strategic, Operational and Support Processes, the cost - driver must be chosen, which best respects the cause-and-effect relationship between:
Resource Consumption Secondary Activity Primary Activity
Likewise, the aspects explained in Stage No. II-3 must be taken into account.
Step No. II-3.2: Election of the cost drivers of the primary activities of the
Strategic and Support that will be assignable to the Operational Processes
For each primary activity carried out in the Strategic and Support Processes, the cost - driver must be chosen, which best respects the cause-effect relationship between:
Resource Consumption Primary Activity Operational Processes
Likewise, the aspects explained in Stage No. II-3 must be taken into account.
Stage No. II-4: Analysis of other costs and expenses
There are costs and expenses that could not be identified for each activity due to not having the most correct way of allocating their cost, so at this stage it will be determined who they will be assigned to (Operational Process or Period Expense) and how they will be assigned.
Once the second phase is finished, we continue to go into details of the presentation and explanation of the Auxiliary Model of Phase III: Determination of the cost of operational processes.
Phase III: Determination of the cost of operational processes
During this phase, the Procedures Manual for calculating the cost of the processes is prepared, which contains the calculation of the cost of the activities of each process and its explanation.
Stage No. III-1: Calculation of the costs of the primary and support activities
To carry out this stage, the following are taken into account: Step No. II-1.1; Task No. II-1.1.2 and Task No. II-1.1.4, of Phase II.
Step No. III-1.1: Calculation of the costs of the primary and support activities of the Strategic Processes
Step No. III-1.2: Calculation of the costs of the primary and support activities of the Operational Processes
Step No. III-1.3: Calculation of the costs of the primary and support activities of the Support Processes
Stage No. III-2: Allocation of the costs of support activities to primary activities To carry out this stage, the following is taken into account: Step No. II-3.1, of Stage II.
Step No. III-2.1: Allocation of the costs of the support activities to the primary activities of the Strategic Process
To carry out this step, Step No. III-1.1 is taken into account.
Step No. III-2.2: Allocation of the costs of the support activities to the primary activities of the Operational Process
To carry out this step, Step No. III-1.2 is taken into account.
Step III-2.3: Allocation of the costs of the support activities to the primary activities of the Support Process
To carry out this, Step No. III-1.3 is also taken into account.
Stage No. III-3: Allocation of the costs of the activities to the Operational Processes To carry out this stage, Step No. II-3.2 of Stage II is taken into account.
Step No. III-3.1: Allocation of the costs of the primary activities of the Strategic Processes to the Operational Processes
To carry out this, Step No. III-2.1 is also taken into account.
Step No. III-3.2: Allocation of the costs of the primary activities of the Support Processes to the Operational Processes
To carry out this, Step No. III-2.3 is also taken into account.
Stage No. III-4: Allocation of other costs and expenses to the Operational Processes To carry out this stage, Stage No. II-4 of Stage II is taken into account.
Stage No. III-5: Calculation of Total Costs of Operating Processes
The costs assigned directly to the Operational Processes or through cost - drivers are determined with the objective of knowing how much each Operational Process costs the hotel.
To carry out this stage, Stage No. III-3 and No. III-4 are taken into account.
CONCLUSIONS
With the presentation and explanation of the design of the ABC system for the hotel sector, the work is concluded and the following conclusions are reached:
- The characteristics of the services sector, and within them the hotel sector, demonstrate the need to promote research for its continuous improvement. In the literature consulted, it is shown that there is not the same level of development achieved on the ABC system in the hotel sector with with respect to the sphere of production, both in the academic and business world The cost systems in force in the hotel industry do not allow the provision of relevant information for managerial decision making The integration of different methods, tools and / or procedures in the proposed system, give solid scientific support to the design, providing the basis for the case study.The disaggregation of the Basic Model of the ABC system proposed in different Auxiliary Models allows to have a logical methodological sequence.
BIBLIOGRAPHY
- Amozarrain, Manu. "Management by processes". In: http://web.jet.es/amozarrain/Gestionprocesos.htm., Consulted 4-2-99 Bimson, JA (1991). “Activity Accounting. An Activity-Based Accounting Approach ”. John Wiley & Sons, Inc New York. Translated into Spanish in the work of the same author (1995): “Accounting by activities”. Spain: Marcombo. 2nd edition. Barcelona, p: 91. García H., R. and L. Cuétara S. "Methods for Decision Making in Business Management". Brazil: Federal University of Acre. Second Edition, 1996, pp.: 173-196.Goicochea Hansen, D. "Multiobjetive Decision Analysis with Engineering and Business Applications". New York: John Wiley and Sons, 1982, pp.: 217-258. Kaplan, Robert S.; Cooper, Robin. "Cost and Effect". Barcelona: Editorial Gestión 2000 SA, 1999, p: 340.Lattin, Gerald W. “Modern Administration of Hotels and Motels”.Mexico: Editorial Trillas, SA 1975. /sp/.Leonie, L. "Theory Hotelera". México 22, DF: Compañía Editorial Continental, SA de CV 1982. /sp/.Nogueira Rivera, Dianelys. "Conceptual model and support tools to enhance management control in Cuban companies." Cuba: University of Matanzas "Camilo Cienfuegos". Doctoral Thesis directed by DrC. Medina León, Alberto and DrC. Quintana Tápanes, Lázaro. 2002. Ripoll Feliu, Vicente M.; Tamarit Aznar, Carmen. “Research in activity-based cost systems: 1986-1994 period”. Financial News. Spain. / sn /, No. 12, December 1996, pp.: 1059-1069.Ripoll, V.; Balada, T. “Manual of costs”. Spain: Gestión 2000, SA., Barcelona, 2001, pp.: 69-71 Sánchez Rebull, M. Victoria. "The proposal"Hotel Theory". México 22, DF: Compañía Editorial Continental, SA de CV 1982. /sp/.Nogueira Rivera, Dianelys. "Conceptual model and support tools to enhance management control in Cuban companies." Cuba: University of Matanzas "Camilo Cienfuegos". Doctoral Thesis directed by DrC. Medina León, Alberto and DrC. Quintana Tápanes, Lázaro. 2002. Ripoll Feliu, Vicente M.; Tamarit Aznar, Carmen. “Research in activity-based cost systems: 1986-1994 period”. Financial News. Spain. / sn /, No. 12, December 1996, pp.: 1059-1069.Ripoll, V.; Balada, T. “Manual of costs”. Spain: Gestión 2000, SA., Barcelona, 2001, pp.: 69-71 Sánchez Rebull, M. Victoria. "The proposal"Hotel Theory". México 22, DF: Compañía Editorial Continental, SA de CV 1982. /sp/.Nogueira Rivera, Dianelys. "Conceptual model and support tools to enhance management control in Cuban companies." Cuba: University of Matanzas "Camilo Cienfuegos". Doctoral Thesis directed by DrC. Medina León, Alberto and DrC. Quintana Tápanes, Lázaro. 2002. Ripoll Feliu, Vicente M.; Tamarit Aznar, Carmen. “Research in activity-based cost systems: 1986-1994 period”. Financial News. Spain. / sn /, No. 12, December 1996, pp.: 1059-1069.Ripoll, V.; Balada, T. “Manual of costs”. Spain: Gestión 2000, SA., Barcelona, 2001, pp.: 69-71 Sánchez Rebull, M. Victoria. "The proposal"Conceptual model and support tools to enhance management control in Cuban companies." Cuba: University of Matanzas "Camilo Cienfuegos". Doctoral Thesis directed by DrC. Medina León, Alberto and DrC. Quintana Tápanes, Lázaro. 2002. Ripoll Feliu, Vicente M.; Tamarit Aznar, Carmen. “Research in activity-based cost systems: 1986-1994 period”. Financial News. Spain. / sn /, No. 12, December 1996, pp.: 1059-1069.Ripoll, V.; Balada, T. “Manual of costs”. Spain: Gestión 2000, SA., Barcelona, 2001, pp.: 69-71 Sánchez Rebull, M. Victoria. "The proposal"Conceptual model and support tools to enhance management control in Cuban companies." Cuba: University of Matanzas "Camilo Cienfuegos". Doctoral Thesis directed by DrC. Medina León, Alberto and DrC. Quintana Tápanes, Lázaro. 2002. Ripoll Feliu, Vicente M.; Tamarit Aznar, Carmen. “Research in activity-based cost systems: 1986-1994 period”. Financial News. Spain. / sn /, No. 12, December 1996, pp.: 1059-1069.Ripoll, V.; Balada, T. “Manual of costs”. Spain: Gestión 2000, SA., Barcelona, 2001, pp.: 69-71 Sánchez Rebull, M. Victoria. "The proposalLazarus. 2002. Ripoll Feliu, Vicente M.; Tamarit Aznar, Carmen. “Research in activity-based cost systems: 1986-1994 period”. Financial News. Spain. / sn /, No. 12, December 1996, pp.: 1059-1069.Ripoll, V.; Balada, T. “Manual of costs”. Spain: Gestión 2000, SA., Barcelona, 2001, pp.: 69-71 Sánchez Rebull, M. Victoria. "The proposalLazarus. 2002. Ripoll Feliu, Vicente M.; Tamarit Aznar, Carmen. “Research in activity-based cost systems: 1986-1994 period”. Financial News. Spain. / sn /, No. 12, December 1996, pp.: 1059-1069.Ripoll, V.; Balada, T. “Manual of costs”. Spain: Gestión 2000, SA., Barcelona, 2001, pp.: 69-71 Sánchez Rebull, M. Victoria. "The proposalABC applied to the hotel sector ”. Doctoral thesis directed by DrC. Rocafort Nicolau, Alfredo. Spain: 2002, pp.: 101-150; 191-213.Sánchez, E. "Application of the expert method in the examiner algorithms for an SAE". Operations Research Magazine. La Habana: / sn /, V (2), 1984, pp.: 31-43.Thrischler, William E. “Improvement of Added Value in Processes. Saving time and money by eliminating waste ”. Spain: Gestión 2000, pp.: 7-34.Zaratiegui, JR "Management by processes: its role and importance in the company". Industrial economy. / sl /: / sn /, No. 330, 1999. / sp /.
Authors
- MSc. Pilarín Baujín Pérez. Accounting and Finance Department. University of Matanzas, Cuba. ANEC Base Section: University of Matanzas. [email protected]. Telephone (53) (45) 261748.DrC. Vladimir Vega Falcón. Center for Tourism Studies (CETUM). University of Matanzas, Cuba. ANEC Base Section: University of Matanzas. [email protected]. Telephone (53) (45) 261748.DrC. Marta Armenteros Díaz. Higher Institute of International Relations (ISRI). City of Havana, Cuba. [email protected]. Telephone (53) (07) 222571.DrC. Roberto A. Frías Jiménez. Center for Tourism Studies (CETUM). University of Matanzas, Cuba. ANEC Base Section: University of Matanzas. [email protected]. Telephone (53) (45) 261748.MSc. Osmany Pérez Barral. Accounting and Finance Department. University of Matanzas,Cuba ANEC Base Section: University of Matanzas. [email protected]. Telephone (53) (45) 261748.
The term ABC was first used in a pilot study by John Deere Component Works. There are also other applications recognized worldwide for their success such as: Works Schrader Bellows , Tektronix: Portable instruments Division, Siemens Electric Motor Works, Rank Xerox, IBM, Hewlett Packard, General Motors, Hewlett-Packard (Rosenville Network Division), Siemens, General Dynamics (Fort Worth Division), among others.
Kaplan, Robert S.; Robin Cooper. Chapter 12 "The ABC in service companies". In "Cost and Effect". Barcelona: Editorial Gestión 2000 SA, 1999, pp.: 229-250.
Ripoll Feliu, Vicente M. and Carmen Tamarit Aznar. “Research in activity-based cost systems: 1986-1994 period”. Financial News. Spain. / sn /, No. 12, December 1996, pp.: 1059-1069.
Sánchez Rebull, M. Victoria. "The ABC proposal applied to the hotel sector". Doctoral thesis directed by DrC. Rocafort Nicolau, Alfredo. Spain: 2002, pp.: 101-150, carry out an analysis of the ABC System in each of the entities related in this area by Ripoll and Tamarit.
Leonie, L. "Hotel Theory". México 22, DF: Compañía Editorial Continental, SA de CV 1982. / sp /.
Lattin, Gerald W. "Modern Hotel and Motel Management." Mexico: Editorial Trillas, SA 1975. / sp /.
Sánchez Rebull, M. Victoria (2002), ob. cit., pp.: 191-213.
An expert is understood as both the individual himself and a group of people or organizations capable of offering conclusive assessments of a problem in question and making recommendations with a maximum of competence, Sánchez (1984).
Goicochea Hansen, D. "Multiobjetive Decision Analysis with Engineering and Business Applications". New York: John Wiley and Sons, 1982, pp.: 217-258.
Sánchez, E. "Application of the expert method in the examiner algorithms for an SAE". Operations Research Magazine. Havana: / sn /, V (2), 1984, pp.: 31-43.
García H., R. and L. Cuétara S. "Methods for Decision Making in Business Management". Brazil: Federal University of Acre. Second Edition, 1996, pp.: 173-196.
Decisoft Software Version 1.0. Prepared by Ernesto Quiñónez Puentes and Rónel Álvarez Rodríguez. University of Matanzas Camilo Cienfuegos. 2000.
Brainstorming: it is the method of brainstorming or brainstorming. Its emergence is attributed to Osborn, who in 1938 used it for group reflections. Its use requires a group of participants capable of providing solutions to the problem under study, effectively guided and stimulated by a facilitator and assisted by one or more recorders.
A process can be defined as a set of interrelated activities, characterized by inputs and outputs, aimed at obtaining a specific result as a consequence of the value contributed by each of the activities carried out in the different stages of said process. In addition, the processes must satisfy the requirements of the different interest groups of the company, Trischler, 1998.
Relevant processes: it is a sequence of activities aimed at generating added value on an entry, to achieve a result that fully satisfies the objectives, the strategies of an organization and the customer's requirements. One of the main characteristics that normally intervene in the relevant processes is that they are interfunctional, being capable of vertically and horizontally crossing the organization (Amozarrain, 1999).
A system is understood to be the organizational structure, procedures, processes and resources necessary to implement a certain management (Amozarrain, 1999).
Operational or Key Processes: intended to carry out the actions that allow the development of the policies and strategies defined for the company to provide a service to customers. These processes are carried out by functional managers, who must have the cooperation of the other directors and their human teams (Zaratiegui, 1999).
Strategic or managerial processes: aimed at defining and controlling the goals of the company, its policies and strategies. These processes are managed directly by senior management as a whole (Zaratiegui, 1999).
Support or Support Processes: they are not directly linked to the policy development actions, but whose performance directly influences the level of operational processes (Zaratiegui, 1999).
It is an abstraction technique that enhances the training of logical thought processes, as well as the development of analytical perception and language. It enables the analysis of the object, fact or phenomenon in an integral way, as a whole, and the evaluation of its parts.
The priority processes will require the participation of secondary processes carried out efficiently to develop with a high level of performance (Zaratiegui, 1999).
Nogueira Rivera, Dianelys. "Conceptual model and support tools to enhance management control in Cuban companies." Cuba: University of Matanzas "Camilo Cienfuegos". Doctoral Thesis directed by DrC. Medina León; Alberto and DrC. Quintana Tápanes, Lázaro. 2002.
There is consensus in the consulted literature Deming (1989); Harrington (1991); Trischler (1998); Zaratiegui (1999); Amozarrain (1999) in which the processes and sub-processes have to guarantee that the cycles of: Plan (plan), Do (do or execute), Check (control, verify) and Action (act) are fulfilled.
METAPLAN is a method developed by Eberhard Schnelle to facilitate group work and organizational analysis. It is based on the assumption that the subject to be changed must involve analysis and planning of future actions, in order to achieve effectiveness in the implementation phase. The approach consists of an original way of visualizing the problem, allowing and promoting that all attendees examine, discuss and choose useful elements, and share alternatives and solutions.
http://www.netverk.com.ar/~gamdi/MEeDiab_Frame_V1/5Tecnicas_framework.htm
Kaplan, Robert S and Robin Cooper (1999), ob. cit., p: 111. They show and explain the cost accuracy target, where they state that the objective should be to have the best cost system, that is, one that balances the cost of errors made due to inaccurate estimates with the measurement cost.
It is an abstraction technique that allows to determine the essence of the content under study, the objective of which is to distinguish the essential properties from the general properties.
This abstraction technique allows researchers to get used to the search, integration and expression of the ideas that support or base the veracity or conformity of judgments about an object, phenomenon, natural or social process. Its main purpose is to develop argumentative capacities, it contributes to the conscious assimilation of knowledge, allowing to take a position before the known, which is highly effective for the formation of definitions.
Kaplan, Robert S. and Robin Cooper (1999), ob. cit., pp.: 161-163. They argue that unfortunately with these schemes there are several problems: not being able to consistently define what constitutes an activity with or without added value. 29 ABM: activity based management, that is, administration based on activities).
Bimson, JA (1991). “Activity Accounting. An Activity-Based Accounting Approach ”. Ed. John Wiley & Sons, Inc New York. Translated into Spanish in the work of the same author (1995): “Accounting by activities”. Spain: Marcombo. 2nd edition. Barcelona, p: 91.
Activity level: refers to the level of services provided. Different costs behave differently as production levels change, and any assessment of costs at an achieved level of activity must take these differences in behavior into account. All analysis of cost behavior patterns must be considered in terms of a specific scale of activity levels that are often referred to as the appropriate scale of activity. Such a scale generally encompasses the normal scale of company operations. Once this scale of activity levels has been determined, it is possible to observe the different values for the various costs as activity levels change.Cost behavior beyond the appropriate scale may never be known and should not be extrapolated from observed activity levels without careful consideration of the impact of unusual conditions likely to occur at those levels.
Classification with respect to activity level. Within an appropriate scale, costs can be divided into: fixed costs and variable costs. Fixed costs which are defined as costs that do not fluctuate as the level of activity changes within the appropriate scale. Variable costs are defined as costs that fluctuate directly with changes in activity levels. Not all costs will be fully variable or fixed. Some behave as mixed. These mixed costs rise with the increase in activity and there may be two classes: semi-variable costs and tiered costs. Ripoll, V. and T. Balada. "Cost manual". Spain: Gestión 2000, SA, Barcelona, 2001, pp.: 69-71.
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