IDEAS home Printed from https://ideas.repec.org/a/spr/opmare/v17y2024i3d10.1007_s12063-024-00485-1.html
   My bibliography  Save this article

Strategizing competitive edge in service operations: a model proposal for determining the unit costs through the activity-based cost accounting and the full-consistency method

Author

Listed:
  • Mehmet Ozcalici

    (Kilis 7 Aralık University)

  • Dragan Pamucar

    (University of Belgrade
    Yuan Ze University
    Lebanese American University)

  • Ahmet Kaya

    (Akdeniz University)

  • Burcin Tutcu

    (Department of Accounting and Tax, Korkuteli Vocational School)

  • Hatice Karamanci

    (Akdeniz University)

  • Hasan Emin Gurler

    (Kilis 7 Aralık University)

Abstract

Sustainable competitive advantage, a cornerstone of strategic management, encompasses a business's enduring capability to maintain long-term financial superiority over its competitors. The business should optimize its operations by reducing costs and improving efficiency to attain a sustainable competitive advantage. In the present study, the Activity-Based Costing (ABC) system was implemented to calculate the unit costs of a hotel operating in Turkey, and the expenses were allocated to the overnight costs using the Full-Consistency Method (FUCOM) technique. FUCOM is designed to determine room costs in a hotel business accurately. Expert evaluations were simulated to interpret the results statistically. Also, the Best–worst method (BWM) is used to compare the results. The results of this study hold significant implications for decision-makers, implementers, stakeholders, and theoretical contributions to hotel operations. The proposed model will enable hotels to identify room costs and realistically achieve a sustainable competitive edge. The proposed system is also suitable for implementation by other enterprises operating in the service sector.

Suggested Citation

  • Mehmet Ozcalici & Dragan Pamucar & Ahmet Kaya & Burcin Tutcu & Hatice Karamanci & Hasan Emin Gurler, 2024. "Strategizing competitive edge in service operations: a model proposal for determining the unit costs through the activity-based cost accounting and the full-consistency method," Operations Management Research, Springer, vol. 17(3), pages 996-1021, September.
    • Handle: RePEc:spr:opmare:v:17:y:2024:i:3:d:10.1007_s12063-024-00485-1
    DOI: 10.1007/s12063-024-00485-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12063-024-00485-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12063-024-00485-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Maha Faisal Alsayegh, 2020. "Activity Based Costing around the World: Adoption, Implementation, Outcomes and Criticism," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 6(1), pages 251-262, March.
    2. Ahmad Abdullah & Shafi Ahmad & Mohd. Adnan Athar & Nishant Rajpoot & Faisal Talib, 2022. "Healthcare performance management using integrated FUCOM‐MARCOS approach: The case of India," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(5), pages 2635-2668, September.
    3. Željko Stević & Nikola Brković, 2020. "A Novel Integrated FUCOM-MARCOS Model for Evaluation of Human Resources in a Transport Company," Logistics, MDPI, vol. 4(1), pages 1-14, February.
    4. Tsai, Wen-Hsien & Kuo, Lopin, 2004. "Operating costs and capacity in the airline industry," Journal of Air Transport Management, Elsevier, vol. 10(4), pages 269-275.
    5. Abhijit Saha & Arunodaya Raj Mishra & Pratibha Rani & Ibrahim M. Hezam & Fausto Cavallaro, 2022. "A q -Rung Orthopair Fuzzy FUCOM Double Normalization-Based Multi-Aggregation Method for Healthcare Waste Treatment Method Selection," Sustainability, MDPI, vol. 14(7), pages 1-28, March.
    6. Horváth & Partners Management Consultants, 2020. "Management Accounting," World Scientific Book Chapters, in: The Controlling Concept Cornerstone of Performance Management, chapter 3, pages 21-74, World Scientific Publishing Co. Pte. Ltd..
    7. Partovi, Fariborz Y., 1991. "An analytic hierarchy approach to activity-based costing," International Journal of Production Economics, Elsevier, vol. 22(2), pages 151-161, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baykasoglu, Adil & Kaplanoglu, Vahit, 2008. "Application of activity-based costing to a land transportation company: A case study," International Journal of Production Economics, Elsevier, vol. 116(2), pages 308-324, December.
    2. S. N. Nartey & H. M. van der Poll, 2021. "Innovative management accounting practices for sustainability of manufacturing small and medium enterprises," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18008-18039, December.
    3. Chia-Nan Wang & Ngoc-Ai-Thy Nguyen & Thanh-Tuan Dang, 2023. "Sustainable Evaluation of Major Third-Party Logistics Providers: A Framework of an MCDM-Based Entropy Objective Weighting Method," Mathematics, MDPI, vol. 11(19), pages 1-27, October.
    4. Ahmet Kaya & Dragan Pamucar & Hasan Emin Gürler & Mehmet Ozcalici, 2024. "Determining the financial performance of the firms in the Borsa Istanbul sustainability index: integrating multi criteria decision making methods with simulation," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-44, December.
    5. Phi-Hung Nguyen, 2023. "A Fully Completed Spherical Fuzzy Data-Driven Model for Analyzing Employee Satisfaction in Logistics Service Industry," Mathematics, MDPI, vol. 11(10), pages 1-34, May.
    6. Anthony MWILA & Vincent MASAKA & Kaombe TUKUMANA, 2022. "The Impact of the Activity-Based Costing on SMEs’ Financial Performance in Lusaka, Zambia (I)," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 3(6), pages 42-50, June.
    7. Abdullah Al-Barakati & Pratibha Rani, 2024. "Assessment of healthcare waste treatment methods using an interval-valued intuitionistic fuzzy double normalization-based multiple aggregation approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 19397-19424, August.
    8. Vladimir Simic & Ali Ebadi Torkayesh & Abtin Ijadi Maghsoodi, 2023. "Locating a disinfection facility for hazardous healthcare waste in the COVID-19 era: a novel approach based on Fermatean fuzzy ITARA-MARCOS and random forest recursive feature elimination algorithm," Annals of Operations Research, Springer, vol. 328(1), pages 1105-1150, September.
    9. Adis Puška & Željko Stević & Dragan Pamučar, 2022. "Evaluation and selection of healthcare waste incinerators using extended sustainability criteria and multi-criteria analysis methods," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(9), pages 11195-11225, September.
    10. Cecília Carmo & Cristiana Ribeiro, 2022. "Mandatory Non-Financial Information Disclosure under European Directive 95/2014/EU: Evidence from Portuguese Listed Companies," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    11. Tsai, Wen-Hsien & Lee, Kuen-Chang & Liu, Jau-Yang & Lin, Hsiu-Ling & Chou, Yu-Wei & Lin, Sin-Jin, 2012. "A mixed activity-based costing decision model for green airline fleet planning under the constraints of the European Union Emissions Trading Scheme," Energy, Elsevier, vol. 39(1), pages 218-226.
    12. Sanjib Biswas & Aparajita Sanyal & Darko Božanić & Adis Puška & Dragan Marinković, 2023. "Critical Success Factors for 5G Technology Adaptation in Supply Chains," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    13. Andrea Cardoni & Martin Hiebl & Alessio Paradisi, 2023. "Management accounting implementation in SMEs: A Structured Literature Review," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(2 Suppl.), pages 189-214.
    14. Tsai, Wen-Hsien & Lai, Chien-Wen & Tseng, Li-Jung & Chou, Wen-Chin, 2008. "Embedding management discretionary power into an ABC model for a joint products mix decision," International Journal of Production Economics, Elsevier, vol. 115(1), pages 210-220, September.
    15. Li, Sui-Ling, 2014. "The cost allocation approach of airport service activities," Journal of Air Transport Management, Elsevier, vol. 38(C), pages 48-53.
    16. Snežana Tadić & Mladen Krstić & Milovan Kovač, 2023. "Assessment of city logistics initiative categories sustainability: case of Belgrade," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1383-1419, February.
    17. Zeshan Alam & Yousaf Ali & Dragan Pamucar, 2024. "Elevating Pakistan’s flood preparedness: a fuzzy multi-criteria decision making approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-27, December.
    18. Zorlu, Kuttusi & Polat, Selahattin & Yılmaz, Ali & Dede, Volkan, 2024. "An integrated fuzzy-rough multi-criteria group decision-making model for quantitative assessment of geoheritage resources," Resources Policy, Elsevier, vol. 90(C).
    19. Okan Berkcan & Tamer Aksoy, 2022. "Assessing the effect of proactive maintenance scheduling on maintenance costs and airline profitability: The case of Turkish Airlines Technic," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(4), pages 213-238, June.
    20. Ocampo, Lanndon & Aro, Joerabell Lourdes & Evangelista, Samantha Shane & Maturan, Fatima & Atibing, Nadine May & Yamagishi, Kafferine & Selerio, Egberto, 2023. "Synthesis of strategies in post-COVID-19 public sector supply chains under an intuitionistic fuzzy environment," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:opmare:v:17:y:2024:i:3:d:10.1007_s12063-024-00485-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.