Designing an activity-based ABC costing system for airport landing services

Applied research at Baghdad International Airport

Abstract

The research dealt with the issue of designing a cost accounting system for landing services in airports by relying on the method of cost accounting based on ABC, where the basic activities were identified and cost vectors were reached to measure and determine the cost of landing services at the airport to provide decision makers or management with appropriate information that gives a more picture The correctness and effectiveness of the reality of the cost of the service, and the research problem was represented in the lack of adoption of airports, which is one of the services sector, on the cost accounting system to calculate the cost of the service, as well as the failure to determine the activities producing the service and the auxiliary activities, and therefore the administration cannot take the appropriate decision regarding its services, including pricing decisions that must to be fair and rational. The aim of the research is to design a cost-accounting system based on ABC activities in the service sector in general and airports in particular to calculate the cost of the service represented by landing and provided to aircraft (airlines) and thus provide appropriate information for management for the purposes of increasing the effectiveness of special decisions for those services. Research that the use of the cost accounting system based on activities ABC helps to determine and measure the cost of transportation services correctly, and then the possibility of management to take an appropriate and rational decision regarding landing services in a fairer and objective manner.