COST MANAGEMENT FOR PROFITABILITY MANAGEMENT SUPPORTED BY THE TARGET COSTING METHODOLOGY:

a study in a luxury hotel in Fernando de Noronha-PE

Abstract

This study aims to apply a managerial control methodology focusing on costs and supported by the target costing methodology to evaluate the profit planning of a company in the hotel sector. It is an inductive method, and the study is classified, according to its objective, as exploratory and descriptive. Regarding the technical data collection procedures, this research used primary data documents from a company in the hotel sector, which is part of a network currently consisting of 4 hotels, 2 restaurants, and 1 beach club, based on network scalability criteria. The practical implication is to reduce the risk of mismanaging the business due to not accurately knowing the cost composition, developing projections and improvement actions at the strategic level, using financial and economic indicators. As originality, this research developed an artifact for assessing the impact on decision-making by managers in luxury hotel sector companies. It was found that the constructed model showed an accuracy above 95% for the calculation of EBITDA.