ABSTRACT
Introduction This chapter focuses on the different ways costs are classified in order to support management decision making and organizational control. When referring to costs in everyday hotel affairs, managers use terms suggesting a multitude of cost classification schemes. These classifications include: fixed and variable costs, direct and indirect costs, opportunity costs, incremental costs, sunk costs, non-controllable and controllable costs. It is not surprising that staff without any accounting background become somewhat bewildered by the existence of so many cost classifications.
