Xy Cost Control Analysis

Cost is a comprehensive indicator reflecting the level of enterprise management. The level of cost is related to the company's destiny especially in the current overcapacity and increasingly competitive market in most industries. Cost control can not only improve the management level, but also can increase profitability, making the enterprise in an invincible position in the fierce market competition.XY company is a subsidiary of a private holding group in Sichuan, and the main business are production and sales of color printing compound packing. Since its establishment in 1988, after ten years time, production and management has been quite successful and profitable, but since 2006 it had deficit finance. Why the production and management system is profitable previously, but now it is at a loss? This as a case, its operation and management are studied.In this paper, the method of theory and case are combined. Firstly, introducing the packaging and printing industry, we can see that the current competition in the industry, products with low technology, low value-added features, positioning company's cost strategy based on Porter's competitive strategy theory; Secondly, using the theoretical of financial management to analyse XY company's financial position, to find out the factors that affect cost control; and using cost control theoryl to analyse the company's management system to found out which is not conducive to cost control. Thirdly, based on cybernetics and information theory, combined with the characteristics of the company, put forward the suggestion and defenit practices in changing attitudes, building organizational structure and strengthening cost accounting.China's private enterprises are concentrated in labor-intensive industries, cost control is the protection of these enterprises; and cost accounting and the construction of organizational structure is a prerequisite of cost control. It must pay attention to these basic works.In this paper, the first part is the theoretical overview, an overview of the theory of cost control, including the method of cost control, costs accounting and other aspects.The second part is the case study. Describing the status of plastic flexible packaging industry, then introdusing the situation of XY Company's cost control, including sales, design, materials procurement, inventory, production and other aspects. Analyse the cost control of the entire value chain, pointing out the problems.The third part based on the theory of cost control put fprward the improvements for existing processes and systems of XY Company.The fourth part is the conclusion...