ACCOUNTING POLICY DOMINANTS IN MANAGEMENT OF AVIATION COMPANY OPERATING COSTS

Abstract

Unlike the world trends, Ukraine has seen a significant decline in demand for air travel, which, on the one hand, is due to a decline in the solvency of the population that is in need of this type of service, and, on the other hand, to a “price war”, in which more financially sustainable foreign airlines are dropping prices and luring the bulk of local passengers. Hence, there is a need for finding effective ways to manage operational expenses as the base of a flexible tariff policy for air transportation.
It has been proven that one of the most effective ways to manage the operational expenses of airlines is strict compliance to the accounting policy, which requires defining its dominants in accordance with the communicatory needs of air carriers at the current stage of economic relations development in Ukraine. In particular, it is justified that the order-based accounting method should replace the boiler method of cost accounting in conjunction with elements of the standard-cost and ABC methods. Meanwhile individual cost of the flight should be the main object of calculation. It takes into account flight and technical characteristics of the aircrafts and the individual costs associated with the implementation of a separate flight. To overcome the problem of operating costs impersonal accounting, airlines have been offered to use ABC calculation elements, which will make it possible to directly relate production overhead costs to certain types of flights (aircraft).
It is indicated that the improvement of the operational expenses accounting of air transport companies of Ukraine is connected not only with the improvement of the accounting policy elements but also with their accurate implementation. Thus, the article offers a model for assessing the quality of compliance with the standards of the Scientific Policy Order, which is based on an expert-oriented approach, and its practical application will help improve the accounting of operating costs in the context of increasing control over their use.