Question 1:

Tourism industry is one of the rapid growing industries around the globe. The boom of mass tourism at the twentieth century becomes widespread with the alternative tourism attendance. The conditions today forcing touristic destinations and tourism enterprises for challenging. This competition pressure affecting the choices and activities of the enterprises. Thus, the importance of utilizing the resources more efficient and effective becomes increased. Therefore, enterprises should more emphasis on cost management systems.

Questions for Discussion: (3 + 4 + 3 + 5 = 15 Marks)

a. How cost accounting helps tourism firm in determining the price? (300 words)

b. Which kind of decision can be taken by tourism firm using cost accounting method? (400 words)

c. Which technique of costing can be used in tourism firm and why that technique can be used? (300

words)

d. What are the benefits enjoyed by tourism firm by adopting cost accounting? (500 words)