An Early Warning Mechanism for Price Sensitive Express Company—Application of Activity Based Costing Theory

摘要

Since 2009, the price inflation of fuel and labor force factors of production made China express corporations difficult to survive, however, applying the activity-based costing(ABC) not only can accurately calculate the cost of product and customer, but also can make quantitative analysis of the influence degree of production factor on the total cost of product and customer. Through forecasting the price of production factors, the China express company can make clear the profitability of all products and customer in the future. Therefore, express company can take responsive measures before the expected losses. Because this method can make effectively early warning for price inflation of factors of production so as to adopt corresponding measures in advance, it is really a new application of ABC in the management of express company.