product costing services
Chapter 1
Introduction
Background of the study
The tourism sector of the Philippines has been improving. Tourism industry boost in the trend of today’s generation that creates new opportunities in business world. The tourism industry is recognized by the government as an important contributor to the generation of foreign exchange earnings, investments, revenue, and employment and to the growth of the country output. The inclusion of tourism as a major pillar in the Medium Term Philippine Development Plan (MTPDP) has given priority to the tourism sector by promoting the Philippines as a premier tourist destination and investment site. If developed in a sustainable manner, indeed it can be a powerful economic growth engine for the country.
Travel Agency is one of the popular businesses in the tourism industry. A travel agency is a private retailer or public service that provides tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located.
The study focuses on how travel agencies cost the services they render. Product costing is the accounting process of determining all business expenses pertaining to the creation of company products. These costs can include raw material purchases, worker wages, production transportation costs and retail stocking fees. A company uses these overall costs to plan a variety of business strategies, including setting product prices and developing promotional campaigns. A company also uses product costing to find ways to streamline
Introduction
Background of the study
The tourism sector of the Philippines has been improving. Tourism industry boost in the trend of today’s generation that creates new opportunities in business world. The tourism industry is recognized by the government as an important contributor to the generation of foreign exchange earnings, investments, revenue, and employment and to the growth of the country output. The inclusion of tourism as a major pillar in the Medium Term Philippine Development Plan (MTPDP) has given priority to the tourism sector by promoting the Philippines as a premier tourist destination and investment site. If developed in a sustainable manner, indeed it can be a powerful economic growth engine for the country.
Travel Agency is one of the popular businesses in the tourism industry. A travel agency is a private retailer or public service that provides tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located.
The study focuses on how travel agencies cost the services they render. Product costing is the accounting process of determining all business expenses pertaining to the creation of company products. These costs can include raw material purchases, worker wages, production transportation costs and retail stocking fees. A company uses these overall costs to plan a variety of business strategies, including setting product prices and developing promotional campaigns. A company also uses product costing to find ways to streamline
Bibliography: Ask U. Ax Berguam, L-E Jonson, S. (1992). “Calculative Practice and Cost Accounting in Swedish Industry”. Cracknell D. and sempangi H. (2002). “Product Costing in Practice, The Experience of Microsave” Drury C. and Tayles M. (2005). “Product Costing In UK Organizations”. University of Huddersfield and Loughborough University Business School.