What is a cost driver?

A cost driver is an operational factor in the department that effects the need for labor, whether that is guests, rooms or revenue. Example Housekeeping – rooms occupied last night is used as a cost driver because these must be cleaned today. The more rooms that must be cleaned the more labor is needed; in the Kitchen –total food revenue is considered a reasonable measurement to consider the need for labor.

The cost driver is displayed next to non-productive hours. The columns following the cost driver are for information only and do not affect productivity.

Click here to read more about the cockpit cost driver.

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