Tài liệu The factors affecting the adoption of cost accounting system of selected travel agencies in hanoi, vietnam

ThAi nguyen University Southern Luzon STATE University Socialist Republic of Vietnam Republic of Philippines THE FACTORS AFFECTING THE ADOPTION OF COST ACCOUNTING SYSTEM OF SELECTED TRAVEL AGENCIES IN HANOI, VIETNAM A RESEARCH PRESENTED TO THE FACULTY OF GRADUATE SCHOOL SOUTHERN LUZON STATE UNIVERSITY LUCBAN, QUEZON, PHILIPPINES THAI NGUYEN UNIVERSITY S.R. VIETNAM IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE DOCTORAL IN BUSINESS ADMINISTRATION Name of Student English Name Date of Birth Course : DOAN THI QUYNH ANH : ANGEL : 05/01/1981 : SLSU-DBA1 Hanoi November, 2013 Page 1 ACKNOWLEDGMENT During the conduct of my thesis, I would like to give my sincere thank to advisors: Prof. Dr. Pete Ooi; Dr. Edwin Bernal . The advisors help me with detailed guidance and instruction so that I can complete my research. Representatives from Southern Luzon State University, ThaiNguyen University, ICT and academic affairs together with teachers and staffs in ICT office has encouraged and helped from all the members in the class. When conducting the research, I receive the enthusiastic support and participation of directors and staffs of all enterprises that I have research. Beside that, I always receive the encouragement and support form my family. I would like to express my sincere thanks to the advisors, staffs participating in the research and my family for supporting me a lot. Doan Thi Quynh Anh - Angel Page 2 CONTENTS ACKNOWLEDGMENT ............................................................................................................... 2 TABLE CONTENT................................................................................................................................ 3 LIST OF TABLE .................................................................................................................................... 4 LIST OF FIGURES ............................................................................................................................... 6 CHAPTER 1. INTRODUCTION ............................................................................... 7 CHAPTER II. REVIEW OF RELATED LITERATURE AND STUDIES ......... 15 CHAPTER III. METHODOLOGY ......................................................................... 39 CHAPTER IV. RESULTS AND DISCUSSIONS ................................................... 45 CHAPTER V. FINDINGS AND CONCLUSIONS ................................................ 75 REFERENCES ........................................................................................................... 79 Page 3 TABLE OF CONTENTS Table 3.1. Factors affecting the adoption of the cost accounting system .............. 40 Table 4.1 Respondents’ Age and Gender ................................................................ 46 Table 4.2. Respondents’ Position and Field of Specialization ................................ 47 Table 4.3. Perceived Level of Awareness and Understanding of Cost Accounting System ......................................................................................................................... 49 Table 4.4.. Perceived Ease of Use of Cost Accounting System ............................... 52 Table 4.5. Perceived Usefulness of Cost Accounting System ................................ 54 Table 4.6. Attitude Toward Adherence to Cost Accounting System inCost Management ............................................................................................................... 57 Table 4.7. Summary Table on Respondents’ Perception and Attitude Towards Adoption of Cost Accounting System....................................................................... 59 Table 4.8. The relationship between the accountants’ and the managers’ perception of their level of awareness and understanding of the cost accounting system in travel agencies Crosstabulation ............................................................... 60 Table 4.9 Chi-Square Tests ....................................................................................... 62 Table 4.10. The relationship between the accountants’ and the managers’ perception on the ease of use of the cost accounting system in travel agencies Crosstabulation .......................................................................................................... 63 Table 4.11. Chi-Square Tests .................................................................................... 64 Page 4 Table 4.12. The relationship between the accountants’ and the managers’ perception on the usefulness of the cost accounting system in travel agencies Crosstabulation .......................................................................................................... 65 Table 4.13. Chi-Square Tests .................................................................................... 66 Table 4.14. The relationship between the accountants’ and the managers’ attitude toward use of the cost accounting system in travel agencies Crosstabulation .......................................................................................................... 67 Table 4.15. Chi-Square Tests .................................................................................... 68 Table 4.16. Independent Samples Test ..................................................................... 70 Table 4.17. Independent Samples Test ..................................................................... 71 Table 4.18. Independent Samples Test ..................................................................... 72 Table 4.19. Independent Samples Test ..................................................................... 73 Page 5 LIST OF FIGURES Fig 1 Classification of cost in travel agencies ......................................................... 31 Fig 2 Conceptual framwork ..................................................................................... 39 Page 6 CHAPTER 1 INTRODUCTION 1.1 Research Background As Vietnam rides in the development of world economy, its hospitality/tourism industry had gained remarkable leap. Demand in a wide-range of hospitality-related products and services increased as people's living standard improved. This included products and services in travel services which is one sector in the multi billion-dollar world-wide hospitality industry. Products and service in a travel agency are designed to satisfy special needs of consumers such as understanding the culture, tradition and the historical treasures of one locality, appreciating natural beauty of the place, experiencing the climate, foods, events and festivities of the area, and a lot of activities simply designed for sightseeing and for rest and recreation. The demand for travel products and services is not very stable as it easily changes due to instability of the climatic condition, and the economic and political situation of the particular tourism destination. It therefore requires that players in the travel business to be more creative and innovative to anticipate changes in the business landscape in order to cushion the impact of slack time in the business. On one hand, it also requires that industry players fully grasp the characteristics of tourism and travel products to be able to organize business activities that optimally meet the needs of clients and ensure enhanced business performance on the basis of strict cost control. It also requires strong organizational skills as well as Page 7 understanding of the upstream and downstream links and costs which are, more often than not, not too easy to quantify as transfers of values take place with the transfer of intangible subject of business transactions. While application of sound managerial accounting techniques and concepts is inevitably necessary, all must start from the solid understanding and appreciation of cost accounting and the adoption of appropriate cost accounting system. Summarily, determining the cost of products and services in a travel agency poses a great challenge for the firm’s accountants and managers in as much as the business’ price offerings depend largely on the relevant costs. Doubly challenging is the implementation of a firm’s policy on cost allocations because this requires a deal of rationalization so as not to overburden one product/service while others overburdened with unnecessary costs. This therefore requires the identification and the use of appropriate cost driver to achieved full rationalization of the system. Further, to achieve comparative and competitive advantages, it is necessary that, costs associated with the implementation of activities in major business functions along the value chains should be analyzed as to whether these are value-adding or non-value adding costs. Obviously, only value adding activities are client-focused activities and therefore add to the achievement of the value expectations of the clients. While cost accounting is a necessary requirement to achieve more in the travel business in Hanoi, less has been benefiting fully from it. To determine the factors that drive the sector to adopt cost accounting system is the major reason why this research was conducted. Page 8 1.2. Statement of the Problem This research focused on determining the factors which affect the adoption of the cost accounting system of selected travel enterprises in Hanoi. Specifically, it tried to find answers to the following research questions: 1. What is the profile of the respondents in terms of gender, age, position and field of specialization? 2. What is the accountants’ and the managers’ perception of their level of awareness and understanding, ease of use, and usefulness of cost accounting system? 3. What factors are significantly affecting the attitude of the accountants and the managers of travel agencies in adopting a cost accounting system? 4. Is there any difference in the accountants’ and the managers’ perception of their level of awareness and understanding, ease of use, and usefulness of cost accounting system? 5. Is there any difference between the accountants’ and the managers’ attitude towards adherence to the cost accounting system in the management of costs in travel agencies? 1.3. Statement of Objectives The general objective of this research was to determine the significant factors affecting the adoption of cost accounting system for Hanoi-based travel agencies. It seek to meet the requirements of the following specific objectives: 1. To determine the profile of the respondents in terms of gender, age, position and field of specialization. Page 9 2. To describe the accountants’ and the managers’ perception of their level of awareness and understanding, ease of use, and usefulness of cost accounting system. 3. To identify the factors which significantly affect the attitude of the accountants and the managers of travel agencies in adopting a cost accounting system. 4. To statistically test the difference in the accountants’ and the managers’ perception of their level of awareness and understanding, ease of use, and usefulness of cost accounting system. 5. To statistically test the difference between the accountants’ and the managers’ attitude towards adherence to the cost accounting system in the management of costs in travel agencies? 1.4. Hypotheses The following hypotheses were tested using inferential statistical tools: Hypothesis 1: There is no relationship between the accountants’ and the managers’ perception of their level of awareness and understanding, ease of use, and usefulness of cost accounting system and their attitude towards adoption of the same cost accounting system in travel agencies. Hypothesis 2: There is no difference in the accountants’ and the managers’ perception of their level of awareness and understanding, ease of use, and usefulness of cost accounting system. Hypothesis 3: There is no difference between the accountants’ and the managers’ attitude towards adherence to the cost accounting system in the management of costs in travel agencies. Page 10 1.5. Significance of the study In integration trends and competitive at present, enhance the capacity of Vietnamese businesses in particular and the economy in general in difficulties economic conditions is a matter of necessity of Vietnam. One of the economic sectors is considered Vietnam is the point of the travel industry. In order to raise capacity of travel agencies, a series of measures was taken by tourism businesses to apply good governance over their enterprises such as : building Vietnamese travel photos and build good customer relations , manage travel activities , training of staff travel .... In measure , cost management is one of the most important issue for each travel agencies . One of the instruments that helps manage cost efficiently is cost accouting system in cost mangement. This research concentrates on finding the factors affecting the adoption of the cost accounting system in travel agencies. This research conduct to analyze relationship between factors affecting the cost accounting system in selected travel agencies. This study will be significant to the following individuals and organizations: For travel agencies and its key officers, this research indicates help finding the key factors to apply the cost accounting system, they can use the results of this research to find the factors affecting to the adoption of cost accounting system in their enterprise. Based on the results of this dissertation, managers and accountants in travels agencies can making a plan to adopt the cost accounting management in their enterprise with the target such as managial cost, , saving cost, decision making.. Page 11 1.6. Scope and Limitation of the Study Along with the system of the general theory of cost accounting system for internal management, the thesis will analyze and assess the current perception of cost accounting systems at some business travel company in Hanoi from which to finding the factors affecting of adoption of cost accounting sytem for travel agencies in the direction of modern cost accounting management system, which help the cost management and providing useful information for the decision of the administrator. With the aim of improving accounting system in travel company in Hanoi, and the number of enterprises tourism in Hanoil multiple, complex components business in different fields, so the authors concentrate on research of the cost accounting system of 7 business describe the model tour travel service in Hanoi, including: A state-owned enterprise specialized in the field of business travel, business travel in all four areas received international, send international visitors, receives domestic tourists and domestic tourists on Hanoi recent years that is Vietnam Travel and Marketing transports Company. Two enterprises belong to VietNam national Administration of Tourism are the State of Investment and Tourism Thang Loi and HaNoi Tourism company. Three enterprises represent non-state enterprises as AsiaLink travel joint stock Company; New Horizons travel joint stock company, SaoMai travel company. Besides, the authors also conducted to survey 25 travel companies in the area of Hanoi. Page 12 1.7. Operational Definition of Terms The following terms has been operationally defined: Cost accounting system: A cost accounting system is a system designed for managers to help them make decisions and includes; input measurement basis, inventory valuation method, cost accumulation method and cost flow assumption. The type of costs that come into an inventory may be pure historical costing or standard costing. Cost accounting system is the process of collecting, analyzing and evaluating alternative causes of action. A cost accounting system consists of five parts and they include input measurement, inventory valuation, cost accumulation, cost flow assumption and recording of inventory cost flows. Cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production. More generalized in the field of economics, cost is a metric that is totaling up as a result of a process or as a differential for the result of a decision. Hence cost is the metric used in the standard modeling paradigm applied to economic processes. Page 13 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. Level of awareness and understanding of cost accounting system is perception of accountants and managers of cost accounting system base on their knowledge about accounting, cost, cost accounting system. Ease of use of cost accounting system is perception of accountants and managers of ease of use cost accounting system. The ease of use of cost accounting system is show ability of accountants and managers using the cost accounting system. Usefulness of cost accounting system is perception of accountants and managers of use of cost accounting system. That is a wonderful tool for the management. When it comes to measuring how wisely company resources are being utilized, if offers a lot of advantages to the several end users like management, employees, government, general public and creditors. The usefulness of cost accounting system is its effect and result of usefulness of cost accounting system for the accountants and managers work. Page 14 CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES This chapter authors reviews the related literature and studies on travel industry in Vietnam in general, Hanoi travel in particular. This chapter provides the reader with sufficient theory about cost accounting, the usefulness of cost accounting system. It will discuss theories framework and concepture framework , which is going to be evaluated in following chapters. 2.1. Review of Related Literature 2.1.1. The tourism industry and the travel sector During the 53 years of establishment and development, travel industry has always been interested in each period are determined location of tourism in the economic development strategy of the country's socio-suit bridge revolution. In 53 years of development , not a long time for the development of an industry , but can also see the strong upturn in both quantity and quality of Vietnam Tourism , is a in important aggregate economic sectors, bringing profound cultural content that is interdisciplinary, inter-regional and socialize high growth rate in recent times , including in crisis conditions Asian economic and natural disasters, widespread epidemics, global conflicts and local wars and terrorism in many parts of the world in recent years. Vietnam tourism in 53 years of development, tourism industry has achieved these results: Page 15 1. Innovation , improve awareness about tourism perspective : The whole industry has focused efforts to mobilize the intellectual and theoretical studies and tests , practical summary of tourism development in the country, forming, proposed system and gradually complete the view, guidelines and policies for tourism development with the Party and the State . 2. Apparatus and management capacity of state for tourism , business travel system is perfected , activity gradually adapt to the new regime. 3 . Mobilizing more and more resources to build infrastructure , improve the quality and diversification of tourism products. 4 . The propaganda and promotion , tourism promotion is enhanced. In recent years , the tourism industry has focused on the promotion of tourism in both the domestic market and internationally . Promotion work is more focused : Established Tourism Promotion Bureau ; had promotion for a period of 5 years ; gradually improved professionalism , quality of events organized better . Tourism has actively coordinated with Vietnam Airlines , Vietnam embassies abroad, the Ministry of Culture - Information , news agencies and newspapers , broadcasting , organizing many events tourism promotion overseas 5 . International cooperation is expanding , exploiting external resources. 6 . Achieve and maintain a high growth rate , the effect of socio- economic growing and comprehensive. There is such a result , the entire tourism industry has actively implemented seriously and synchronization solutions, both at work perfecting the policy, state Page 16 management, broadcast promotion, link and coordinate local businesses, enhance the quality of services .. By the end of 2012, Vietnam had 1120 international tour operators; 11,840 tourist guides have been issued cards, including cards 4,809 instructors and 7,031 local tourist guide card international travel and the total number of tourist accommodation establishments all over the country is estimated at 13,500 to 285,000 chamber, in which: 57 hotels 5 star 147 hotels 4 star,335 hotels 3 star. Vietnam Tourism to identify some key tasks in 2013 include : Continue to implement the development strategy of Vietnam's tourism in 2020, with a vision to 2030, deployment of the planning scheme, other resorts according to the master plan on development of Vietnam Tourism 2020 vision 2030 after being approved by continued deployment tasks improve the quality and efficiency of tourism statistics; promote activities E - tourism marketing and branding Vietnam tourism logo and slogan associated with the new deployment scheme to attract tourists from 8 key tourism markets of China , Japan , Korea , Malaysia , Thailand , Australia , France , Russia , to exploit tourism development Ha Long Bay and a number of other prominent points to ensure the sustainability and high economic efficiency, image building heritage tourism Vietnam, Ha Long Bay... 2.1.2. Travel business in Hanoi Hanoi is located and beautiful location, conveniently, is the capital, the center of politics, economy, culture scientific, and important traffic of the country. As one of the largest tourist centers of the country, Hanoi plays a very important role in the tourism development of the country in general and in particular of Tonkin. International tourist arrivals to Hanoi for about 30 % of visitors to Vietnam. With the advantage of historical, cultural capital , domestic tourists to Hanoi at the forefront of Page 17 the country. Hanoi is also a center for receiving and distribution of tourists travel to the northern region and the other regions in the territory of Vietnam as well as to countries in the region . It has long become destinations Hanoi attracts international travelers largest country by ancient beauty , quiet , elegant . Hanoi tourism natural resources and rich humanistic , systematic Hanoi lakes make up a very particular landscape values of Hanoi West Lake , Hoan Kiem Lake , Quan Son Lake , Suoi Hai , Van Tri ... special dress relic Thang Long Imperial Citadel , Giong festival at Phu Dong temple and temple Soc , Ca tru is recognized by UNESCO as a world cultural heritage , in addition, the system epitaph Dr. Le Mac at Van Mieu Quoc Tu Giam was recognized as a UNESCO world documentary heritage of world program of UNESCO memories . Thus, Hanoi has always been appreciated by the international tourists as an attractive destination . This is more significant when the Hanoi area was expanded 3.6 times the old area , with a population of over 6.5 million people , opens up the potential for the tourism industry . With nearly 5,000 sites , of which 803 sites have been ranked , ranked first in number of historical monuments , eligibility to develop cultural tourism , historical , spiritual ... In addition to the advantage of monuments , landscapes historical land of thousand years of civilization , Hanoi is emerging as the ideal location for eco-tourism , leisure and entertainment . Along with the expansion of the administrative boundaries of Hanoi more unique tourist destinations catering . Hanoi currently has a number of eco-tourism service quality is relatively good Tan Da, King Pond, about Green - Suoi Tien, Asian . Page 18 There are also some resort entertainment as Bao Son Paradise ( Hoai Duc ) , Vietnam Phu Thanh Chuong , Ho Tay Water Park ... large scale has come into operation . Hanoi is also home to cultural establishments systems , information center of the country such as radio , television , theater major , major museums , the performing arts theater folk as rowing , water puppetry is very attractive to international travelers and domestic . Since several years , Hanoi has always been a number of prestigious travel magazine as the World 's leading Travel and Leisure ( U.S. ) , Smart Travel Asia ( HKG ) held a vote and won the title of Top 10 tourist destinations most of Asia. International visitors to Hanoi increasing number of customers rose by an average of 18-20 % . In 2008, Ha Noi welcomes 1.3 million , in 2009 due to the global economic crisis and the disease is 1.02 million visitors ; 2010 with a celebration event in 1000 thousand years of Thang Long - Hanoi Cabinet and the National Tourism Year, Hanoi arrivals increased, the total number of 1.7 million; 2011 welcomed 1.84 million international passengers; 2012 Hanoi welcomes over 2 million international tourist arrivals . Markets domestic tourists to Hanoi large proportion of the country 's leading , with an average annual passenger traffic accounted for over 20 % of domestic tourists in Vietnam . In 2002, Hanoi welcomes 2.8 million , by 2009 had brought 9.2 million , in 2010 to reach 10.6 million; in 2011 to reach 11.6 million; in 2012 to reach over 12 million passengers . Domestic Tourists to Hanoi with many different purposes and from all provinces of the country , in which visitors to Hanoi for tourism purposes traveling, Page 19 visiting relatives and healing . Visitors to in Hanoi , stay at hotels 38.6 % , 24.4 % Guest House , Lodging and 21.8 % in the friends and relatives about 15.2 % ( by relatives and visitors rate Hanoi to therapy rather large ) . Shopping is a pastime of tourists , especially domestic tourists . Spending on shopping accounted for the highest proportion , 27.7 % of the total expenditure , followed by eating 22.5 % , 22.1 % accommodation , transport and entertainment respectively 10 , 2 and 9.4 % . On Hanoi now has nearly 500 International travel agencies and nearly 500 domestic travel agencies, has about 50 companies and individual business households transporting tourists. Hanoi focused cultural institutions of the country such as the Opera House , the National Cinema Center, the major museums, the performing arts theater folk as rowing, water puppetry very attractive with international travelers and domestic . Park system as Lenin Park , Thu Le Park , Park Dong Da , Youth Park , West Lake Water Park , Bao Son Paradise Park , Vietnam .... Phu Thanh Chuong are increasingly becoming tourist attractions are concerned . Activity culinary tour of Hanoi were strongly developed , the high socialization , has given high capital position system travel the world and dining area . The dining establishments in Hanoi last time the rapid development of rich and diverse ethnic restaurants like Thai restaurants , Japanese restaurants , Korean restaurants to bars , caffe , pubs snack of the world's major corporations like KFC , Lotteria ... were present in Hanoi , meet the culinary needs of the great majority of visitors and residents of Hanoi. Page 20