STRATEGIC MANAGEMENT ACCOUNTING IN THE FUNCTION OF OPERATOR PRICE REGULATION
STRATEGIC MANAGEMENT ACCOUNTING IN THE FUNCTION OF OPERATOR PRICE REGULATION

Summary/Abstract: The paper discusses the functional relationship between strategic management accounting and the pricing of services that are under the control of the regulator. This is a part of the public sector in which the prices of services are not formed freely, because in these markets there is a significant market power of one or more participants. Therefore, there is a discriminatory attitude towards the competition but also the impact on end consumers, narrowing their choice between multiple services. Consumers are directed to certain prices, which include extra profits, although this should not be the case. This phenomenon is characteristic of the field of electronic communications and similar network sectors and can be prevented by modern methods available to strategic management accounting, primarily by different types of cost models. Prices should be based on the cost of providing services, and a strategic approach to billing in this case is provided by the regulator, as these are monopolized markets. The paper will test the hypothesis that cost models affect the reduction of service prices on the example of wholesale prices in fixed and mobile telephony in the Republic of Serbia.

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