ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITY….. GARRY BILLY ARDIANSYAH
MEASURING CUSTOMER PROFITABILITY THROUGH
TIME-DRIVEN ACTIVITY-BASED COSTING: A CASE
STUDY AT HOTEL X JOGJAKARTA
UNDERGRADUATE THESIS
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF BACHELOR DEGREE IN ACCOUNTING DEPARTMENT OF
ACCOUNTANCY
SUBMITTED BY:
GARRY BILLY ARDIANSYAH NIM: 041113107
FAKULTAS EKONOMI DAN BISNIS
UNIVERSITAS AIRLANGGA
SURABAYA
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITYiv ….. GARRY BILLY ARDIANSYAH
ACKNOWLEDGMENT
Assalamu’alaikum, Wr., Wb.
Alhamdulillah, all praises due to grace of Allah SWT with all of His
greatness and generosity, Who bestowed guidance, blessings, strength, and ideas
that author is finally able to finish this undergraduate thesis entitled “Measuring
Customer Profitability Through Time-Driven Activity-Based Costing: A Case
Study at Hotel X Jogjakarta as a partial fulfillment of the requirements to obtain
bachelor degree of accounting in Department of Accountancy, Faculty of
Economic and Business, Airlangga University.
During the making of this undergraduate thesis, author had received a lot
of help and support from so many people. Therefore, author would like to express
sincere and infinite gratitude to:
1. Prof. Dr. Dian Agustia, S.E., M.Si., Ak., as Dean of Faculty of Economic and
Business, Airlangga University.
2. Mrs. Ade Palupi, SE., MPPM, Ph.D, Ak., as the Head of Department of
Accountancy, Faculty of Economic and Business, Airlangga University.
3. Prof. Dr. Bambang Tjahjadi, MBA, CPM, CMA, CA, Ak., as undergraduate
thesis supervisor who has granted a lot of help, guidance, and motivation
during the completion of this undergraduate thesis.
4. Dra. Yustrida Bernawati, M.Si., CMA, CA, Ak., as guardian lecturer who has
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
Author hopes this undergraduate thesis can crease a smile on their faces.
7. Directors and staffs of Hotel X Jogjakarta, Mrs. Mey, Mrs. Ilus, Mrs. Gita,
Mr. Eko, Mr. Aan, Mr. Iwan and others who have huge contribution in the
completion of this undergraduate thesis.
8. My college acquaintances, Nitami Galih Pangesti, Hanifati, El, Duhita, Zach,
Chika, Putri, Linka, Laksmi, Lila, Nisrina, Api, Dio, Tian, Ervan, Ario, Arif,
Hanif, Anisah, Amalia, Irfan, Pras, Ria, Adele, Raisa and others author
cannot mention one by one for the unstoppable support and dry jokes that
author always has a big laugh with.
9. All people that author may forget to mention who have directly and indirectly
help the completion of this undergraduate thesis.
This undergraduate thesis is far from perfection thus critiques and
suggestions are widely anticipated to improve this research. Hopefully, this
research will give advantages to the readers.
Surabaya, 1 March 2016
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITYvi ….. GARRY BILLY ARDIANSYAH
ABSTRACT
Travelling intensity has been higher in the past few years making hospitality industry must be ready to provide the best service at optimum prices to customers who purchase and enjoy the services. Hotel as one of the accommodation service providers should be able to allocate resources accurately according to the actual needed capacity and thorough tariff policy for not losing the competition and obtain profit according to how much is projected. TDABC system is the most updated costing system which can assist the allocation of these resources. TDABC system is considered twice important to be applied in the service industry as service is intangible so costing system must show the exact and accurate number of resources used to provide the service. Through TDABC system, Customer Profitability Analysis is conducted with the aim of knowing the level of profitability every customer type possesses and classifying them as profitable or non-profitable customers. A case study had been conducted in a five-star hotel located in the Special Region of Jogjakarta resulting a profit recognized under TDABC system that traditional method used as the hotel's costing system failed to do so and more proper data on costs and profitability of customers.
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITYvii ….. GARRY BILLY ARDIANSYAH
TABLE OF CONTENT
Title Page ... i
Approval Page ... ii
Declaration of Originality ... iii
Acknowledgment... ... . iv
Abstract ... .vi
Table of Content...vii
List of Tables... ..x
List of Figures... xii
CHAPTER 1 INTRODUCTION ... 1
1.1Research Background... 1
1.2Problem Statement ... 6
1.3Research Objectives ... 6
1.4Research Contribution ... 6
1.5Systematic of Research ... 7
CHAPTER 2 LITERATURE REVIEW.. ... 9
2.1 Theoretical Basis ... ...9
2.1.1 Cost Accounting.. ... 9
2.1.2 Cost... ... 10
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITYviii ….. GARRY BILLY ARDIANSYAH
2.1.2.2 Cost Classification ... 12
2.1.3 Activity-Based Costing System...16
2.1.4 Time-Driven Activity-Based Costing...19
2.1.4.1 The Application of TDABC Models ...20
2.1.5 Customer Profitability Analysis ...24
2.2 Previous Research ...25
2.3 Conceptual Framework ...26
CHAPTER 3 RESEARCH METHOD ...27
3.1 Research Approach ...27
3.2 Research Scope ...28
3.3 Type and Source of Data ...28
3.4 Data Collection Procedures ...29
3.5 Data Analysis Technique ...30
BAB 4 RESULT AND DISCUSSION ...32
4.1 Description of Research Object ...32
4.1.1 Company’s Profile ...32
4.1.2 Vision, Mission, and Tagline of the Company ...33
4.1.3 Organizational Structure ...34
4.1.4 Customer Segmentation ...36
4.2 Description of Result...37
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITYix ….. GARRY BILLY ARDIANSYAH
4.3.1 Revenue Allocation to Customer Groups ...38
4.3.2 Allocation of Costs to Customer Groups under Hotel’s Costing System ...42
4.3.3 The Application of TDABC System ...43
4.3.3.1 Cost of Capacity Supplied to Main Activities ...45
4.3.3.2 Unit Time of Activities ...51
4.3.3.3 Practical Capacity of Resources ...57
4.3.3.4 Capacity Cost Driver Rate of Main Activities...60
4.3.3.5 Allocation of Costs of Main Activities to Customer Groups ..61
4.3.4 Customer Profitability Analysis ...72
4.4 Research Limitations ...76
CHAPTER 5 CONCLUSION AND SUGGESTION ...77
5.1 Conclusion ...77
5.2 Suggestion ...78
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITYx ….. GARRY BILLY ARDIANSYAH
LIST OF TABLES
Table 2.1Time-Driven ABC Application ... 23
Table 2.2Previous Research ... 25
Table 4.1Allocation of Room Revenues in 2014 ... 38
Table 4.2 Total In-House Guests in 2014 ... 39
Table 4.3 Total Food and Beverages Revenues in 2014 ... 40
Table 4.4Total F&B Customers Based on Customer Groups in 2014 ... 40
Table 4.5 Allocation of Food and Beverages Revenues in 2014 ... 41
Table 4.6Allocation of Total Revenue to Customer Groups in 2014 ... 41
Table 4.7Total Cost of Customer Groups in 2014 under Hotel’s Costing System ... 43
Table 4.8Details of General Activities in Hotel X Jogjakarta ... 44
Table 4.9Allocation of Room Costs to Main Activities ... 45
Table 4.10Allocation of Food & Beverages Costs to Main Activities ... 46
Table 4.11Allocation of Administrative and General Costs to Main Activities .. 47
Table 4.12 Allocation of Repair & Maintenance Costs, Utilities Costs, Property Insurance Costs, and PBB Tax to Main Activities ... 48
Table 4.13 Allocation of Depreciation Costs and Amortization Costs to Main Activities ... 49
Table 4.14 Cost of Capacity Supplied to Main Activities ... 50
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITYxi ….. GARRY BILLY ARDIANSYAH Table 4.16Practical Capacity Supplied to Main Activities ... 60
Table 4.17 Capacity Cost Driver Rate of Main Activities ... 61
Table 4.18 Allocation of Costs of Front Office Activities to Customer Groups
under TDABC System ... 62
Table 4.19 Allocation of Costs of Food and Beverages Activities to Customer
Groups under TDABC System ... 64
Table 4.20 Allocation of Costs of Housekeeping Activities to Customer Groups
under TDABC System ... 67
Table 4.21 Allocation of Costs of Marketing Activities to Customer Groups under
TDABC System... 69
Table 4.22Total Cost of Customer Groups in 2014 under TDABC System ... 70
Table 4.23 Total Cost of Service Provision in 2014 under TDABC System .71
Table 4.24 Customer Profitability Analysis in 2014 under Hotel’s Costing System
ADLN - PERPUSTAKAAN UNIVERSITAS AIRLANGGA
THESIS MEASURING CUSTOMER PROFITABILITYxii ….. GARRY BILLY ARDIANSYAH
LIST OF FIGURES
Figure 2.1 Activity-Based Costing: Assigning Cost of Overhead ... 19
Figure 2.2Conceptual Framework ... 26
Figure 4.1 Organizational Structure of Hotel X Jogjakarta ... 35
Figure 4.2 Unit Time of Front Office Activities ... 52
Figure 4.3 Unit Time of Food and Beverages Activities ... 54
Figure 4.4 Unit Time of Housekeeping Activities ... 56