Scientific paper ID 654 : 2012/1

In recent years, the companies of transport sector operate in a highly competitive environment. This gives rise a need for continuous monitoring, analysis and control of operating costs which is a prerequisite for a successful business development.

This article considers the possibility to apply the linear regression analysis when studying the dynamics of operating costs depending on freight transport volume. In the theory and practice of management accounting, the regression analysis is used as most accurate method for approximative presentation of costs function with its two components (fixed and variable) for management purposes. The analysis allows to create a model for quantifying the relationship between operating costs and transport volume expressed in tonne-kilometres (tkm). Its main advantage is that it allows calculation of confidence indicators about the relationship between operating costs and transport volume.

By using linear regression it is possible to prognosticate future operating costs. Based on data for operating costs and freight transport volume regarding a sample transport company a regression equation expressing the relationship between these operating indicators is obtained. The strength of the relationship between them is also assessed by using correlation analysis.