Research On The Budget Model Of Direct Cost For Transportation Department Of Realway Transport Enterprise

The cost structure of the railway transport enterprises is complexity, and the budget is difficult, so to optimize the cost budget 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. This is a practical application thesis of cost budget management model of Transportation Department which is Cost Responsibility Center that it is the most difficult to Cost Budget. We will make a further research on this question based on direct production budget means of cost. After investigation of three Railway Administrations of different regions, we collect basic data of 3 passenger transportation sections and 30 stations. Based on analysis and evaluation to the present situation of direct production cost budget of Transportation Department, we find out the drivers of direct production cost and the impact of cost drivers and number relations through description statistics and regression analysis. Using this Quantitative Relation, basing on the means Fixed Budget and Flexible Budget and focusing on Services expenses of direct production cost budget of Transportation Department, we establish a scientific and accurate cost budget model with peculiarities of direct production cost budget of Transportation Department. Finally, we insert basic data in budget model and the results of budget data agree well with that of actual data so the practicability and credibility of the model is verified.