Breakeven Analysis To Use In The Shipping Business

Today, under the trend of economic globalization, regional trade bloc, and the gradual shift of the world economy center to the Asian-Pacific region, global shipping has been undergoing a constant development which transforms it from a mere shipping service business to a comprehensive trade covering many fields, such as: shipping industry, shipping technology, shipping information, shipping finance and shipping labor service. This contributes to the increasing importance of global shipping, the major means of realizing economic globalization, in the development of global economy and trade. Shipping has consequently become an important approach to develop economy for worldwide countries. Therefore, all the major shipping countries around the world show great concern for the study on the enhancement of shipping enterprises' competitive ability.Break-even point analysis, discussed in this thesis, is a simple and easy modern management technology with a broad range of application. It can solve the problems troubling investors or production managers, provide them with direct and powerful proof, remind them of controlling factors of large variation amount, and minimize the possibility of deficit. What's more, it offers an all-round analysis of the fixed and variable cost of shipping enterprises to obtain break-even point and enable the enterprises to probe the method of lowering cost and raising profit with an aim. In accordance with the characteristics of shipping enterprises, this thesis, employing specific examples, discusses the application of break-even point in terms of production management, and investment management, and signifies the orientation of its future study. It specifically introduces application of nonlinear break-even analysis and vague break-even analysis in production management and signifies the orientation of its future application in shipping enterprises.This thesis consists of the following seven chapters:Chapter one: explain the study background , study motivations, and current state of the relative study home and abroad; and describe the structure of this thesis.Chapter two: point out the current state and existing problems of shipping enterprises' production and investment management and discuss the necessity of applying break-even point analysis in shipping enterprises.Chapter three: introduce several basic concepts concerning break-even point analysis, nonlinear break-even point analysis and vague break-even point analysis.Chapter four: illustrate the cost composition of shipping enterprises according to theircharacteristics and divide their cost into fixed and variable cost in line with the requirements of the break-even point analysis.Chapter five: illustrate the calculation of break-even point cargo transport volume and the introduction of the application of nonlinear break-even point analysis and vague break-even point analysis in shipping enterprises' production management.Chapter six: introduce the application of break-even point analysis in shipping enterprises' investment management according to the characteristics of the international shipping investment, which centers around shipping investment management, and discuss the formula of vessel financing lease payment break-even point.Chapter seven: make a conclusion of the thesis and introduce of some remaining problems.Fan Wei (Accounting) Directed by: Shao Ruiqing (Professor)...