The Application Study Of Activity-Based Costing In Port Industry

Activity-Based Costing (ABC) and Activity Cost Management (ABM) is widely studied and adopted in some developed countries. It is used as a new method to improve on traditional costing accounting by cost driver analysis. In China, many experts have done some researches and experiments on this subject, and ABC has even been applied experimentally. In the author's point of view, Port industry can also apply this useful method to prefect its management. This dissertation explains that it is not only necessary to carry out the research and application, but also to be practicable for activity cost accounting by Port industry. ABC clarifies the key control of Port industry's cost-operations. It will help to strengthen cost management and play an important role in the fierce competition for Port industry.Port industry is different from other industries in many aspects. The application of ABC has several different requirements. Because the traditional cost management accounting system has no relation with cost decision-making, a set of advanced cost costing system should be introduced into Port industry. This dissertation is based on Port industry's characteristics, analyzes the feasibility of ABC, and puts forward three arrangements of applying ABC in Port industry.The first arrangement shows that classify cargo and operation cost measuring method is the groundwork and basis of ABC's application in Port industry. The cost factors have been checked out for basic direct loading & unloading fees, which include labor fees, machineries equipment fees and tool fees. But its distribution ratio is illogical to auxiliary production expenses and indirect working expense. The second arrangement outlines how to perfect classify cargo and operation activity-based cost measuring method. According to cost driver, the department ABC can logically apport indirect working expense. The last arrangement probes in some theory problems on how to establish ABC system based on resource plan for enterprises in Port industry.An example is used to illustrate how to design classify cargo and operation activity-based cost measuring method and control costs in a certain bulk cargo terminal. At the same time, the dissertation analyzes auxiliary production expensesand indirect working expense by making use of the cost driver in Port industry's cost management.The dissertation indicates that ABC/ABM in Port industry not only reflects relatively accurate business cost, but also provides multi-level classify cargo and operation activity-based cost information.If the above three arrangements could be carried into execution successfully in Port industry, it can provide relatively reasonable cost information for the decision maker. This improvement can help the financial sector to establish rational cost objectives, avoid non-added value activity and control costs.