The analysis of the expenses on tourism sphere by standard costing method

<p>The research &quot;The analysis of the expenses on tourism sphere by standard costing method&quot; contains 16 tables, 11 diagrams and 3 appendices. 46 resources were used for writing this paper, its volume is 74 pages. Keywords: cost accounting, standard costing method, tourism sphere, analysis of deviations.</p><p>The object of the thesis is the touristic company JTB and the subject of the paper is the cost accounting within its touristic product&rsquo;s cost.&nbsp; Minimizing the level of the expenses is the up-to-date problem, that&rsquo;s why the target of the research is the evaluation of applying standard-costing method for cost accounting in touristic company in order to decrease company&rsquo;s expenses and therefore to obtain competitive advantages within the market.</p><p>The scientific novelty of the research is the adaptation of the standard-costing method to non-manufacturing companies, in particular to the accounting of services in travel agencies; this paper also provides the new idea how to analyze costs deviations in travel sphere on the basis of standard costing. The practical importance of the research is the recommendations that can be applied by the company&rsquo;s management for making administrative decisions regarding minimizing costs while working with accounts payable.</p><p>The chapter 1 &quot;Theoretical basis of the analysis of cost accounting&quot; contains the qualitative method of the scientific research: the specialized literature is analyzed, the variety of cost accounting methods of travel companies is revealed, the pricing models are studied and forecasts of the tourism market are made.</p><p>Applying any of the existing cost accounting methods can be explained by the economic activity of the company, that&rsquo;s why, despite the qualitative analyses, it is essential to make the analyses of economic and financial activity of the chosen company. This kind of analyses is provided in the chapter 2 &laquo;The Company&rsquo;s characteristics, the analyses of its activity&raquo;. Results of this analysis reveal the main directions in which the company needs to take measures for receiving the best financial performance: the JTB Company should decrease its expenses while working with short-term accounts payable.</p><p>The quantitative method of the scientific research used in the paper reveals the influence of factorial changes on product price. In the chapter 3 &laquo;Applying standard costing method to company&rsquo;s cost accounting&raquo; the adequate financial cost accounting model is created within standard-costing method. Results of the factorial analyses of this method form the basis for the development of several administrative decisions at the company and lead to increase of efficiency of its activity.</p><p>In this research all costs of the touristic company are defined and analyzed; the cost accounting model within standard costing method is created and tested with the help of factorial analyses. The research provides the algorithm of determining essential cost deviations and the way how to introduce standard costing system to all travel agencies in order to minimize their costs.</p>