Study On Cost Control And Budget Management Of Oil Refining Enterprise

With the establishment of our country's market economy system and thecontinuous reformation of the state-owned enterprises, our country's oilrefining industry has completed the historical reorganization in 1998. Afterour country joined the World Trade Organization, entered the globaleconomic integration ranks, and finished the reorganization, how will theenterprise establish their own competitive advantage in the intense marketcompetition is an extremely stern and the urgent topic for us.The cost level can reflect an enterprise's competitive abilitysynthetically. Although for many years our country's oil refining enterpriseshad made massive work and summarized a series of effective method andexperience for control and reduce the production cost. The cost control levelhad certainly enhanced, but there still is a big disparity compared withdeveloped country. This made us realize profoundly that traditional costcontrol pattern which based on the production scene can not establish thelong-term competitive advantage; therefore under the new competitionenvironment we must seek the new cost control pattern to meet the newchallenge.This paper draws up from the analysis of the present situation of ourcountry's oil refining enterprises cost control and the necessity of elevatingcost control level, on the bases of using overseas advanced cost controltheories and methods for reference, puts forward that our country's oilrefining enterprises should establish a set of new cost control system, andtraverses the related content of cost budget. Finally, this paper will discuss theimplementation countermeasure of the cost control system and the questionswhich enterprises should pay attention to.