Yto Delivery Managerial Accounting Paper

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MBA 832 Management Accounting Paper:

YTO Express Company Logistic Business with
Daphne International Holdings Limited

Instructor: James Olson
Student: James (Yuxi Bei)

Table of Contents
Introduction2
Cost Object and Cost Purpose Discussion3
Cost Pool Analysis ...……………………………………………………..…………..4 Cost Traceability Analysis…………………………………………………………...5 Cost Allocation…………………………………………..…………………………...6 Activity Cost Analysis……........................................................................................10 Conclusion…...……………………………………………………………………....11 Reference…………………………………………………………………………….12

Introduction:
YTO Express Company has been in logistic business since 2000. The head office is located in Shanghai, China. The company has 80 thousand employees and the service covers more than 1,600 Chinese cities. Daphne International Holdings Limited has been the largest women shoes manufacturer in China. The company has more than 35 thousand employees and 5.5 thousand sales networks. The annual turnover has been reached more than 10 billion dollars in 2011. I worked as an YTO employee and participated in all logistic processes for Daphne Limited in 2008 summer. YTO Express Company was taking charge of all Daphne’s online orders. Resource demands can be separated into direct materials, direct labors, and indirect costs. Direct resource includes fuel, packing material, waybills… Direct labor includes drivers, packers, couriers, distributors… Indirect cost includes transportation tools depreciation, office equipments depreciation, and management costs… Operating process describe as follows: First, YTO Company offered us an online order list through Daphne website on the previous working day. Second, YTO sent two or three employees with custom printed waybills to Daphne warehouse to pick up shoes. Third, Daphne warehouse employees helped us with picking up goods, packaging, and pasting waybill. Forth, all shoes were sent to YTO logistics distribution centre by truck, and were allocated for the midnight shipping. Fifth, check all shipping status through waybills on the next morning. Calculate revenue from successful shipping, and track problems for unsuccessful shipping. At last, deal with customer feedbacks, and start another working cycle. We offered delivery service, and then created profits.

Cost Object and Cost Purpose Discussion:
Delivery Cost Pool
Direct Cost
Indirect Cost
Information management Objective
Picking up Object
Packaging Object
Distribution Object
Tracking and Calculating Object
Cost Drivers
Cost Drivers
Cost Drivers
Cost Drivers
Cost Drivers
YTO

with

Dap-hne
logis-tics
cont-ract

Cost
YTO Cost Objectives

Overall, YTO and Daphne program can be divided into information management object, picking up object, packaging object, distribution object and tracking and calculating object.
Firstly, information management object is getting orders bills from Daphne corporate, then figure out what goods should be delivered to YTO distributing centre. The bills order data were transferred through internet. The company offered enough office equipments and hired the project team to manage these data. The purpose of cost is to confirm the previous day’s orders, and start the whole logistic process. Secondly, picking up object is to pick up ordered shoes from Daphne warehouse. The company assigned transportation tools and enough staffs to finish this process. The purpose of cost is to make sure the order bill codes were matched with goods that be loaded into the truck. Third, packaging object is to pack all shoes into YTO standard delivery packages, and pasted on customized waybills. This process was finished by both YTO and Daphne employees, but Daphne employee salaries were not accounted into YTO cost. In addition, YTO supplied all packaging materials and waybills that were used for this process. The purpose of cost is to make the delivery process standardized, and easy to track....
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