The Study And Analyzing On Financial Cost Control Of Pangang

This paper briefly explained the basic theory and its function, principle, content and basic method of the financial cost control of the enterprise. It also analyzed Pangang's present situation on financial cost control, found the vulnerable spot of Pangang's financial cost control system and put forward the suggestions on strengthening Pangang's financial cost control in accordance with the situation. The author put forward the following points on how to strengthen Pangang's financial cost control. I .Grasp the right intention of financial cost control and take the money flow in the process of processing and managing as the target of financial cost control.; II. Establish the idea of system and consummate the Pangang's financial cost control system. This includes :carry out the overall principle and establish the "index system" of "personnel to teams and groups", "teams and group to workshop", "workshop to the whole plant" and " the whole plant to the Corporation"; decompose and fix the responsibility of financial cost control basing upon the principal of "transversal to the side and longitudinal to the bottom" and achieve the end of "everyone should hold the responsibility and everything should be hold by someone"; strengthen the system of executing and index coordinating to guarantee the target realization of the financial cost control; establish the electric data processing system and improve the efficiency and benefit of the financial cost control; carry out the principle that the responsibility system should be combined and lay down the way of rewards and penalties and strictly execute them; III. Establish the idea of fund's time value, work hard to lower the cost of funds raising, dispose the funds scientifically and improve the efficiency of funds. This includes the idea of enhancing the capital operating; activating the inventory property; reducing the occupation of inventory; preventing and clearing of the debts and controlling of the capital payment. IV. Perform the standard cost management and reduce the cost expense scientifically. It described the developing course and implementing conditions of standard cost and put forward the concrete ways for Pangang to realizethe standard cost management. V . Pay more attention to the controlling of key point according to the weak link of financial cost control. It covers the view of strengthening the fundamental work and reducing the purchasing cost by way of bidding procurement; controlling the cost of project. VI. Pursue the overall budgeting and enhance the budget control. The budgeting will decompose the general marketing target to the concrete object of each level; the final realization of the general target will be achieved by the concrete objects.VD. Strengthen the marketing control and guarantee the target of profit. It includes the view of developing of new products; opening of new markets; enhancing the coordination of price. The paper also put forward the idea of taking charge of the work of fixing; reforming the allocation system and increase the degree of assess; pushing the cost to have a continuous and/ or leap reducing basing upon the improvement of technology.