Establishing a System of Income Multiplier Profiles in the Lodging Industry

Authors

Keywords
cost-volume-profit analysis, income multiplier profile, management accounting, USALI, hospitality

Summary
The determination of income multiplier profile (IMP) of an enterprise, activity or department in the budgeting process is a popular method in the field of hospitality to study the influence of different value measurable key factors on the financial result. Its traditional use is associated with determining the business orientation, analyzing the profitability of products and services in order to optimize the financial result, and implementation of accounting and control strategies.

This paper presents a modified approach for establishing a system of standardized profiles, based on conception of responsibility centers under USALI, as key factors are derived from the basic algebraic relationship "cost-volume-profit".

JEL: M41
Pages: 17
DOI: 

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