СONTEMPORARY APPROACHES TO COST CLASSIFICATION FOR ENTERPRISES OF HOTEL AND RESTAURANT BUSINESS

Abstract

The article is dedicated to the analysis of contemporary approaches to cost classification for enterprises of hotel and restaurant business which exerts direсt influence upon the economic stability and competitive performance of enterprises within this particular economic sector in Ukraine. Theoretical and methodological approaches with regard to cost classification for enterprises of hotel and restaurant business have been investigated, elaborated upon and systematized in this paper. Cost grouping in calculation of service costs as well as costs structure according to accounting classification criteria have been examined. It has been established that cost classification by economic elements is distinct from items costs grouping in that within its scope all costs are divided by types that characterize their economic growth without accounting for cost centers. Elements costs grouping is taken into account when conducting operating activities, furthermore these cost groups can be divided according to another classification criterion into fixed and variable. It has been revealed that costs structure taken into account for taxation purposes differs from costs structure for accounting purposes. For instance, in tax accounting the costs of the enterprise are divided into the following groups: costs related to production and rendering of services; non-operating costs (without accounting for and separating operational and extraordinary costs). Therefore, tax legislation stipulates the allocation of four cost elements instead of five. Such cost element as social costs is not singled out, but is incorporated into the account ‘Labor costs’ and ‘Other costs’ depending on the approved accounting policies of the enterprise. Cost classification is formed and improved with consideration for managements functions to ensure monitoring activity of the enterprise of hotel and restaurant business. The study comprises the definition and classification of factors that determine the total costs for service provisioning. Practical significance of the suggested approach to cost classification for enterprises of hotel and restaurant business lies in the capability to assess the impact of each cost type upon the performance efficiency of the enterprise and subsequently take scientifically valid management decisions upon this basis.