Cost Control System Establishment Of Expressway Operating Companies

The expressway construction of China has gained great achievement in past 20 years. But with the increasing number of operating years and traffic volume, the expressway operating cost added year by year. In this context, it is very important about analyzing the composition of operating cost, studying the possibility of reducing the operating cost, adopting effective measures, and building expressway operating cost control system for healthy development of the expressway and establishing economical society.This paper is about operating cost control of expressway companies. Firstly, by collecting data of general expenses about four listed expressway companies'annual reports, take the longitudinal and transverse comparison method, analysis the composition and proportion of operating cost quantitatively and qualitatively. Then explain the elements, such as emolument, traffic toll collection, expressway maintenance, depreciation of fixed assets and amortization of intangible assets, tax revenue, administration and financing, which are the important influence factors about the expressway companies operating cost. Secondly, combined with the operation of actual procedure and the management of actual environment about expressway, make definite that depreciation of fixed assets and amortization of intangible assets, business tax and additional, project cost under construction, service area management, and comprehensive development can't be regulate, but five controllable aspects about collection, maintenance, emolument, administration and financing could be control. Thirdly, use the research methods like the regression analysis and the decay model; discuss the possibility of reducing the operating cost in these five aspects. By using the Electronic Toll Collection System (ETC) and automatic issuing-cards machine to reduce the cost of collection. Through the preventive maintenance, maintenance cost models and marketing maintenance reform to reduce the maintenance cost. By means of the strict control of total employee amount, reasonable control of salary paid leave, cut down work overtime to reduce labor costs. Through saving the water, the electricity and the oil, canceling unnecessary travel, conference and reception, we can reduce the cost of office. By adjusting the structure of the loan and increasing channels to reduce financial expenses. The purpose of these measures is that we could adjust unreasonable management system, optimize the organization structure, reduce the number of employees, eliminate the outdated and backward technology equipment, reduce office and financing expenses, and finally set up the operating cost control system of expressway companies. The application of this system will change careless means, improve the management level, control operating cost reasonably, enhance profitability continuously, and promote the sustainable development of the expressway. This innovation is finding out controllable expressway operating cost from the angle of annual reports about listed companies. And Remove these uncontrollable costs which were influenced by legal, tax policy, and management strategy, clear the controllable expressway operation cost. Based on these and putted forward concrete measures such as organizational structure, reducing personnel, position management, preventive maintenance, marketing maintenance, using new technology and new equipment, change the loan structure, and broad the channels of financing, to reduce the cost combined with practical, and then established the cost control system.