Activity-Based Costing Application in an Urban Mass Transport Company
The purpose of this paper is to provide a basic overview of the application of Activity-Based Costing in an urban mass transport company which operates land public transport via buses and trolleys within the city. The case study was conducted using the Activity-Based Methodology in order to calculat...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Tomas Bata University in Zlín
2011-12-01
|
| Series: | Journal of Competitiveness |
| Subjects: | |
| Online Access: | http://www.cjournal.cz/files/75.pdf |
| _version_ | 1818007833621299200 |
|---|---|
| author | Popesko Boris Novák Petr |
| author_facet | Popesko Boris Novák Petr |
| author_sort | Popesko Boris |
| collection | DOAJ |
| description | The purpose of this paper is to provide a basic overview of the application of Activity-Based Costing in an urban mass transport company which operates land public transport via buses and trolleys within the city. The case study was conducted using the Activity-Based Methodology in order to calculate the true cost of individual operations and to measure the profitability of particular transport lines. The case study analysis showed the possible effects of the application of the Activity-Based Costing for an urban mass transport company as well as the limitations of using the ABC methodology in the service industry. With regards to the application of the ABC methodology, the primary limitation of the accuracy of the conclusions is the quality of the non-financial information which had to be gathered throughout the implementation process. A basic limitation of the accurate data acquisition is the nature of the fare system of the transport company which does not allow the identification of the route that is taken by an individual passenger. The study illustrates the technique of ABC in urban mass transport and provides a real company example of information outputs of the ABC system. The users indicated that, the ABC model is very useful for profitability reporting and profit management. Also, the paper shows specific application of the Activity-Based Methodology in conditions of urban mass transport companies with regional specifics. |
| first_indexed | 2024-04-14T05:20:59Z |
| format | Article |
| id | doaj.art-d9dd3b53564c40139557caa6c1a4c6d4 |
| institution | Directory Open Access Journal |
| issn | 1804-171X 1804-1728 |
| language | English |
| last_indexed | 2024-04-14T05:20:59Z |
| publishDate | 2011-12-01 |
| publisher | Tomas Bata University in Zlín |
| record_format | Article |
| series | Journal of Competitiveness |
| spelling | doaj.art-d9dd3b53564c40139557caa6c1a4c6d42022-12-22T02:10:11ZengTomas Bata University in ZlínJournal of Competitiveness1804-171X1804-17282011-12-01201145165Activity-Based Costing Application in an Urban Mass Transport CompanyPopesko BorisNovák PetrThe purpose of this paper is to provide a basic overview of the application of Activity-Based Costing in an urban mass transport company which operates land public transport via buses and trolleys within the city. The case study was conducted using the Activity-Based Methodology in order to calculate the true cost of individual operations and to measure the profitability of particular transport lines. The case study analysis showed the possible effects of the application of the Activity-Based Costing for an urban mass transport company as well as the limitations of using the ABC methodology in the service industry. With regards to the application of the ABC methodology, the primary limitation of the accuracy of the conclusions is the quality of the non-financial information which had to be gathered throughout the implementation process. A basic limitation of the accurate data acquisition is the nature of the fare system of the transport company which does not allow the identification of the route that is taken by an individual passenger. The study illustrates the technique of ABC in urban mass transport and provides a real company example of information outputs of the ABC system. The users indicated that, the ABC model is very useful for profitability reporting and profit management. Also, the paper shows specific application of the Activity-Based Methodology in conditions of urban mass transport companies with regional specifics.http://www.cjournal.cz/files/75.pdfActivity-Based CostingUrban mass transportABC implementationoverheadcost allocation |
| spellingShingle | Popesko Boris Novák Petr Activity-Based Costing Application in an Urban Mass Transport Company Journal of Competitiveness Activity-Based Costing Urban mass transport ABC implementation overhead cost allocation |
| title | Activity-Based Costing Application in an Urban Mass Transport Company |
| title_full | Activity-Based Costing Application in an Urban Mass Transport Company |
| title_fullStr | Activity-Based Costing Application in an Urban Mass Transport Company |
| title_full_unstemmed | Activity-Based Costing Application in an Urban Mass Transport Company |
| title_short | Activity-Based Costing Application in an Urban Mass Transport Company |
| title_sort | activity based costing application in an urban mass transport company |
| topic | Activity-Based Costing Urban mass transport ABC implementation overhead cost allocation |
| url | http://www.cjournal.cz/files/75.pdf |
| work_keys_str_mv | AT popeskoboris activitybasedcostingapplicationinanurbanmasstransportcompany AT novakpetr activitybasedcostingapplicationinanurbanmasstransportcompany |