The cost unit, which uses only one single parameter for measurement of the service cost, is termed as a simple cost unit. It is expected that 90% of the rooms will always remain occupied. If a margin of 25% on total takings is desired, ascertain the rent to be charged per day assuming a month...Read More

In this system a suitable cost-unit is adopted, which is not a job or process but is related to service rendered e.g. ton-kilometer, passenger-kilometer of transport services, unit of electricity or kilowatt hour, cubic meter of gas etc. A hotel is engaged in providing food, accommodation and other comforts to its customers. Costs incurred by...Read More