Research On Application Of Activity Based Costing In Ground Service Department Of LS Airline

In China,flight travel has been chosen by people more and more frequently,whether for home tourism or business trip.China has become one of the major aviation markets in the world,and there are forecasts that the proportion of the future will be growing.At the same time,the domestic aviation market will be opened gradually,the low-cost airlines will continue to emerge,and the high-speed rail become more and more popular.So,the airlines in china will face both opportunities and challenges.At present,China’s airlines mainly rely on the expansion of investment scale,the increase of capacity,and the monopoly of the civil aviation market to achieve natural growth.The operation and management is extensive,the utilization rate of resources is not high,and the management level needs to be improved.So it is an important problem to think about how to win in the competition.ABC can connect the products and the consumption of resources in enterprises,provide more accurate and more precise cost information,and improve the cost management level for enterprises.Therefore,this paper studies the application of activity based costing in Airline,which aims to improve the level of its cost management and enhance its competitiveness.Firstly,this paper analyzes the cost structure and characteristics of airlines from the point of view of cost management of airlines,and analyzes the current cost accounting methods,the management methods,and unreasonable problems.Secondly,it analyzes the feasibility and necessity of applying activity based costing in LS Airline,and proposes the basic ideas.At last,this paper applies the theory and method of activity based costing to LS airline,and takes the ground service department of as the research object.In the specific case study,this paper designs the cost measurement model based on ABC in ground service Department through product definition,activities identification and resource collection.Then,this paper uses the data of 2015 of LS airline to calculate the activity cost and product cost.Finally,it analysis the application of calculation results based on ABC for Airline Ground Services Department.