| dc.description.abstract | For better profitability, all restaurants should target maximizing workers’ productivity, especially
in fine dining establishments. In this context, cost knowledge is fundamental information needed
for managerial decision-making, such as capacity, pricing, product mix, and profitability analyses.
Calculating food costs in recipes can be done easily if only material costs are considered. However,
it is quite difficult to associate labor costs and general overhead costs with food production
and incorporate them into the calculations. The Time-Driven Activity-Based Costing (TDABC)
system is an effective way to calculate the cost of labor based on the time spent by workers during
food production. This research applies the TDABC system in a case study conducted in a 5-star
luxury hotel’s fine dining restaurant to investigate labor cost. Furthermore, it suggests a
different approach by enhancing the existing TDABC system formula, which considers workers
with different skills and their associated costs (Leveled TDABC). The findings of this research
demonstrate that this approach provides more efficient results and allows for a more detailed and
effective understanding of idle capacities and labor productivity. | vi |
