Study On Aviation Fuel Logistics Cost Management Based On Activity-Based Costing

As China’s economic development and civil aviation market gradually open, the aviation fuel supply corporations are facing an increasingly great pressure of the competition, so companies urgently need to effectively manage in order to gain competitive advantage. The aviation oil supply corporations are the domestic air transportation logistics service providers, providing jet fuel procurement, transportation, storage, inspection, sales and refuelling services. Due to the oil logistics costs account for an overwhelming proportion of the full cost, the aviation supply corporations must reduce logistics costs to ensure profit growth. Activity-Based Costing(ABC) as a way to reflect the dynamic of all activities, measure the cost of activities, is an effective methods to evaluate the effectiveness of cost management. It can provide aviation oil supply corporations some ideas and solutions for logistics cost management.In this paper, it will have an in-depth analysis of activities, activity center, cost drive, cost structure, etc. The purpose of this study is to find a method of the logistics management which based on ABC through the research on the Combination of ABC and the Aviation oil logistics Management. This new method helps corporations not only to improve the aviation oil logistics systems and management, but also to reduce the cost of aviation oil logistics and enhance competitiveness.This thesis consists of five chapters:Chapter 1:The introduction of background, significance and main contents of this thesis.Chapter 2:Analyzing the logistics cost theories of aviation oil management, with emphasis on the content and characteristics of aviation oil logistics, logistics cost management. Research the logistics cost management theory which based on activity-based costing. Chapter 3:Analyzing and revealing the current problems,which faced by F Aviation Oil Corporation in the logistics cost management.Chapter 4:Research on the application of the logistics management which based on ABC in F Aviation Oil Corporation.Chapter 5:Suggestions for the problems of using ABC.The major contribution of this paper are as follows:(1)Research on using the ABC for Aviation oil logistic cost accounting,and then work out the way to optimize the logistics management and reduce the cost;(2) Research on the difficulties which exist in the practical application of ABC and refine the theory.Due to the ABC is still in the starting phase in China both in theory researching and practical application, and there are fewer researches on the application of ABC management in aviation oil logistic company, there are a great gap between my imagination especially on the research of Distribution Center Program which is to be continued.