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Applying ABC system Rail Agenty RTA Dubai
The aim of this project is to apply the Activity-Based Costing (ABC) methodology in Rail Agency (RA) at Road and Transport Authority (RTA) in Dubai in the process of accounting for costs. Before applying the ABC model to the RA at RTA there is provision of background information about RA and RTA. The project proceeds by explaining what ABC system is and its importance. After the explanation, the system is applied to RA at RT beginning with the identification of activities up to the last step, which is calculating the total costs of offering services at RA. Last the project concludes by analysis and discussion, a section that handles the relevance of ABC system to RA.
Introduction
The aim of this paper is to apply the Activity-Based Costing (ABC) system in the Rail Agency (RA) at Road and Transport Authority (RTA) in Dubai to help the RA to manage, reduce, and control costs in the move to handle the increasing competition from other modes of transportation. Minimizing the costs of operations and maximizing profit is the goal of any business organization. It is also the goal of non-profitable organization to reduce their cost of operations. This is because minimizing operation expenses helps a business organization or a corporate to avoid the threat of failure. Competing business organizations or agencies require applying methods...
The different agencies in the transportation sector include the agencies handling road transport, rail transport, and marine transport. These agencies of transports have caused stiff competition among themselves for along time. They compete in terms of offering better services and ensuring that there is retention of customer satisfaction. They have to achieve customer satisfaction by providing quality services. Quality services comes about when cooperate can deliver services to their customers on time, at reasonable prices, ensuring their safety, and showing flexibility. However, it is not easy to meet these criteria without using an organizations or agencies funds. In using the extra funds to achieve customer satisfaction, it is vital for the business organization to ensure that the costs of operations are reasonable for easier profitability, and reduce the risk of failure.
Rail transport is one of the vital modes of transport in the transportation sector in Dubai. Through this transport it is easier to transport heavy goods, reduce road congestion, and connect the buyers and sellers among other benefits. Therefore, it is wise to ensure that this mode of transport is safe for…
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