The Cost-Management Model Research Of The Refining Enterprise

With the establishment of Market economy system in our country and reform of state-owned enterprise, the industry of oil and petrochemistry was restructured historically by 1998.Facing the entrance of the World Trade Organization the participating in the global economy, it becomes an urgent problem how the enterprise builds its competitive advantage .A lot of practices have proved the traditional view of cost-lower production spot could not gain the competitive advantage in the long run.The paper analyzed the traditional cost-management system and the two modern systems which are the Activity Based Cost Management and the Target-Costing , built the new cost-management model according to the characteristics of refinery enterprise, and described its basic category. Focusing on the two emphasizes ( the cost counting and the cost control), the paper gave the detailed discussion.Taking the refinery of yanshan petrochemical Co,Lt. for example, it discussed the method of cost counting. Combining the characteristics of refinery's operating it posed the broad sense cost-control view including the keeping control, improving control and the innovating control. Finally, it analyzed the attribute of the cost management model and foresaw the applying of the new model in the future.