Journal of the Eastern Asia Society for Transportation Studies
Ratio analysis is a commonly used analytical tool for verifying the performance of a firm. While ratios are easy to compute, which in part explains their wide appeal, their interpretation is problematic, especially when two or more ratios provide conflicting signals. This paper built a method for measuring inefficiency companies in a shipping industry to facilitate precise measurement of waste and identify its causes. However, shipping industry needs much resource and cost-down to maintain operation efficiency. Activity-Based Costing (ABC) is an information system developed in the 1980s to overcome some of the limitation of traditional cost accounting and enhance its usefulness to operation management.