This document discusses cost accounting methods used in service industries. It defines cost accounting as a method used to calculate the cost per unit of service provided. It then lists several examples of service industries and service activities within businesses that would use cost accounting methods. Finally, it outlines some key terms and statistics used in cost accounting for the hotel service industry.

1. Prepared by: Jessy Chong

2. Is the cost accounting method used in a business which provides a
service, or in a service activity within any business to ascertain the
cost of providing each unit of service.
 Service Industry
 Utilities
 Professions
 Transportation
 Broadcasting
 Hospitals
 Theatres
 Education
 Service activities within
business
 Canteens
 Training dept
 Maintenance dept
 Power generating dept
 Cleaning dept
 Stores

3. Cost per service unit
Cost per service unit = Total Operating Costs
Total Service Units
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(a) Benefits of cost accounting
• Definition of cost accounting
• COS, Cost/u, Valuation of Closing Inventory
• Budgeting, Standard Costing, Variance Analysis
(b) Statistics Table (one decimal place)
•Room occupancy (%) = Total no of rooms occupied x 100
Total no of rooms available

4.  Bed Occupancy (%) = Total no of beds occupied x 100
Total no of beds available
 Average guest rate ($) = Total Revenues
Total no. of guests
 Revenue Utilisation (%)
= Actual Revenues x 100
Max. revenues from available rooms
 Cleaning Cost per occupied room ($)
= Cleaning Cost
Total no. of rooms occupied
 Average Cost per occupied bed ($)
= Total Costs
Total no. of bed occupied

5. (c) Define
 Cost unit
 Cost centre
(d) Hotel service industry
 Give one example of cost centre
 Give one suitable cost unit for the example of cost centre