Research On Controlling City Bus Operating Cost Based On Activity Based Costing

As an important transit mode of urban public transportation, city buses is facing more and more problems. Within these problems, lacking of the scientific and systematic control methods of operating cost is a prominent problem. To solve this problem, this paper adopts ABC(activity based costing) to do the research of controlling city buses’ operating cost.Firstly, this paper has analyzed city buses’ operating cost. Besides, the structure and framework of city buses’ operating cost has been analyzed and confirmed from the perspective of the operating cost’s characteristics and the city buses company’s structure in this part. After this, this part has analyzed the classification methods of city buses’ operating cost and analyzed the economic characteristics of city buses’ operating cost.Secondly, this paper builds a control system of city buses’ operating cost based on ABC(activity based costing), and this is the core part o this paper. This control system of city buses’ operating cost adopts the broad concept of cost control. The broad concept of cost control includes feedforward control, Process control and feedback control. Based on the broad concept of cost control, this paper analyzed the activity center, activities, resources and cost drivers of city buses. Furthermore,this paper has expounded and analyzed the formulating activity cost standard of city buses, the calculation method of city buses’ operating cost based on ABC and the cost differences between the standard operating cost and actual operating cost.Thirdly, this paper selects Beijing Kaijiefeng city bus company as the research object to apply the control system of city buses’ operating cost based on ABC(activity based costing) to analyze the condition of operating cost and the differences between standard and actual operating cost. According to the result of this analysis, this paper comes up with some suggestions about the city buses’ operating cost control of Kaijiefeng city bus company.