Application Of Activity Based Costing In The Airline

Introducing the emergence and development of activity-based costing, the basic principles and accounting procedures, from the perspective of airline’s cost structure and characteristics, discourse the necessity and feasibility of costing in airlines. According to the basic idea of Costing, the airline main business is divided into operations centers such as the passenger operations, flight operations, landing jobs, support jobs, safeguard jobs and preventing job six, job centers. Collecting the cost to the job center, depending on the operating motivation to allocate costs to the product. Combined with an airline as an example, using traditional costs and activity-based costing methods respectively accounting airline operating results, comparative analysis found that activity-based costing can provide more accurate cost information. In the course of implementation, need to pay attention to the issues such as easy accessibility of non-financial data and reasonable choice of cost drivers. In order to promote the smooth implementation of activity-based costing in airlines,proposed the recommendations such as seek the support of senior management, strengthen operations management, operations management and performance assessment relative access, develop systems support and strengthen the training of internal staff, airlines will have certain reference value applying the activity-based costing in the future.On the basis of full research on operating costs theory, combined with the status of airlines cost management, using innovatively activity-based costing accounting the cost of airline’s product. Due to the limited understanding of activity-based costing and research level on the airline specific business, resulting in the current study is not perfect, hoping to be improved in future work.