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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
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    References listed on IDEAS

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    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. 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.
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