The Research On Minor And Medium Enterprises' Cost Adn Benefit

Nowadays,along with the rapid increase in the price of primary products,enterprises engaged in processing agricultural products,included flour companies, are facing the very difficult situation. However,huge enterprises can still decrease their cost by buying wheats from the government with a lower price. So,increasingly higher price of raw materials and salary lead to the disappear of small flour companies.Besides,due to the fact that minor and medium flour enterprises have a very low productivity efficiency and there are many problems in the process of producing and management. They usually can't control their cost efficiently,in this case, the price of their products are usually higher than huge companies and lead to the waste of resources.Considering the domestic and global situation,firstly,this thesis will work on the definition and theory of cost and benefit.Then,we will analyze the cost of minor and medium enterprises.And we will analyse the variable cost's effect on companies' total cost and benefit. Lastly,we will work on the XYZ company and analyse its cost and benefit with the econometric model.In this thesis, the most important work focus on that the different cost in total cost have different effect on companies' benefit with the econometric model.We hope that we can help enterprises use certain cost producing the most benefit or when the cost is lowest,companies can have the most benefit.The essential aim of this thesis is that we want to give companies in China some useful advice and measures to improve their benefit.Lastly, the conclusion contains: (1) In XYZ company, the material costs occupy the largest perception in the total cost and increase rapidly year by year; the labour cost make the lowest perception in the total cost,although it increases every year,it still has very little effect on company's benefit; manufacturing cost is also very little and fluctuate yearly.(2) The selling cost and managing cost occupy larger perception in the total cost and have visible effect on company's benefit.Enterprises can control them to raise their benefit.