Profitability Report.pdf - Amrita Kaur Dhillon| Student ID 216791113 CRYSTAL COAST OCEAN RESORT PROFITABILITY ANALYSIS REPORT The Activity Based Cost

Profitability Report.pdf - Amrita Kaur Dhillon| Student ID...

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Amrita Kaur Dhillon| Student ID: 216791113 1 CRYSTAL COAST OCEAN RESORT: PROFITABILITY ANALYSIS REPORT The Activity Based Cost Analysis provided the management a clear picture about all the direct and overhead costs of the Crystal Coast Ocean Resort incurred by each room type based on various activities identified by Les Broom, the accounting manager. Since Activity Based Costing is an accounting method that assigns costs to services/products based on activities and resources that makeup the overhead of providing a service or manufacturing a product, it will assist the management to determine the profitability in the following ways: 1. Accurate Pricing of the Rooms : Once Les identified all the activities, direct costs and indirect costs related to each room type of CCOR, the management is now able to analyze the costs of each room type and determine the accurate sales price at a rate which maximizes the profits of the Resort. Since CCOR is determined to provide value
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