Abstract

Abstract This paper looks at the practicability of imp lementing time-driven activity-based costing system (TD-A BC) in service businesses like hotels in Benue State and analyzes profitability of its varying customers. This research is carried out to establish if the application of TD-A BC in service oriented businesses in Makurdi metropolis of Benue State will enhance their performance in terms of profitability. Regarding the goal of this study, the research design is an application research by case study. The researcher purposively selected twenty out of the identified hotel businesses to ascertain the application of TD-A BC. The researcher also chooses one sampled hotel and studied its Restaurant using questionnaires, interviews to get data for this work. The result showed that using TD-ABC system, in co mparison with their existing method provides more data on cost and profitability of customers served and that the application level o f TD-A BC in Nigeria almost non irrespective of the fact that it was a better costing tool. The result also revealed a pro fit of N1,441,808 rather than a loss as hitherto reported by the business for the same period using their costing method. Which means TD-A BC gave better opportunity to analyze cost of operation. The conclusion was that managers of hotel businesses can make use of time equations in TD-A BC to calculate necessary time for act ivities engaged in delivering a unit of service. The recommendation is that service businesses should imp lement TD-ABC to enhance their cost accumulation process and pricing of services, hence increase their profitability.