Formation of "responsibility centers" in management of the aviation companies’ expenses

Abstract

The study of sources of cost formation has been not learned enough in the practice of Ukrainian airlines. As a result the reserves of increasing operational efficiency have been not still utilized. Hence the request for the use of alternative methods of cost accounting, one of which is the concept of accounting for the centers of responsibility exists. The goal of the paper is to study the theoretical foundations of the formation of "the centers of responsibility" in managing the costs of the airline. This goal’s achievement involves such the tasks: to investigate the approaches to the classification of the centers of responsibility; to analyze the possibilities of functional and process budgeting on basis of the needs in evaluation the activities of the centers of responsibility; to identify the peculiarities of forming the operational budgets of the airline within the framework of a process-oriented approach; to develop an approach to accounting operational costs of airline. The methodological basis of the study is general scientific methods of analysis, synthesis, comparison, observation, and modeling. This methodological basis’s using allows achieving the following results. The structure and main functions of the responsibility centers has been investigated, the organizational structure and business processes of the Ukrainian Mediterranean Airlines have been learned, a model for the formation of operational budgets and a method of accounting for the display of operating costs have been worked out. The accounting and analytical tools of the responsibility centers provide a better description of the results of business processes, and also allows to form the system of indicators for functional areas. The basic structural-logical model of the responsibility centers ensures the flexibility of its adaptation to the organizational and functional structure of the airline. The method of process budgeting has appeared to be an optimal tool for analyzing and planning within this concept. This method allows managing the production functions of the airline more effectively in view of their contribution to the creation of additional cost.