This study examines the relation between cost system functionality and contingent factors in the hospitality industry. An empirical survey via questionnaires was conducted on a sample of 100 leading hotels enterprises in Greece. The analysis of the gathered data led us to the conclusion that the majority of hotels’ cost systems do not provide qualitative cost data. Results indicate that the level of cost system functionality is significant positively associated with the low cost strategy and the extent of the use of cost data.