Study Of Activity-based Costing In The Maintenance Of Railway Works

With the rapid advent of market economy and China's entrance into WTO, the competition within transportation trade becomes increasingly intense. Railway industry, as the "Big Brother" of transportation trade, is facing a waning superiority and threatened by the replacement of other transportation alternatives. As a consequence of railway's imperfect internal management, especially the lack of cost management, it results in a disproportional increase between the cost and profit. To optimize the cost management and to reduce the production cost is an essential task, which is put forward not only for the need of making up the deficits and gaining but also for getting an upper hand in market competitions.Production-cost Method is a flow managing method, which has been applied extensively in United States during the period of later 1980s. By analyzing relating activities of product or service flow, this method deepens the relationship between the two, thus produces a more proper cost distribution, improves the reliability of information and perfects the cost management in enterprises.This thesis deals with the inevitability and possibility for the application of Production-Cost Method in China's railway maintenance service on the base of thorough studies of the nature of Production-Cost theories. Employing a combination of theory study and facts analysis, this article also contributes to the application to practical railway maintenance management, establishing a systematic Production-Cost management network and achieving the goal of reducing cost, standardizing service and increasing efficiency.