The Research On Cost Management In The Provincial Enterprises Of State Grid Corporation Of China

Electric Power industry is a fundamental industry that promotes economic construction and ensures national life. Therefore,the development of grid enterprises attracts national attention. With the deep development of electric power’s reformation, the provincial enterprises of State Grid Corporation of China separate government functions from enterprise management. On one hand, in the competitive environment, the provincial enterprises of State Grid must have perfect internal management system to enhance the enterprise value and make it develop well.On the other hand, the provincial enterprises of State Grid operate the energy goods and the service of power supplying, which is relevant to the people’s livelihood and national stability. Therefore, the provincial enterprises of State Grid undertake the social responsibility. That means the provincial enterprises must supply safe and stable power for people.Cost management is an important part of business management. Cost Management is the general term of a series of scientific management including cost accounting of the production and operation process, cost analysis, cost of decision-making and cost control behavior and so on. Cost Management generally includes cost projections, the cost of decision-making, cost planning, cost accounting, cost control, cost analysis, cost assessment and other functional.Cost Management which is systematic and comprehensive, scientific and reasonable, would increase production and strengthen the economic accounting, improve enterprise management, improve the overall management.The Survival and development make the provincial grid enterprises realize the importance of cost management, expand the time and space of cost control.This thesis takes the provincial enterprises of State Grid corporation of China as research object to analysis the status of cost management and the reasons which result in the problems, and then proposes to construct the mode of cost management.The Paper base on previous research,combining with the characteristics of provincial enterprises of State Grid such as operation mode,the environment.etc, analyzes its cost structure and cost management,elaborates the research’s background and significance of cost management for the provincial enteprises of State Grid.Then itsystematically proposes the problems of cost management.In the process of writing,using standard and logic method,firstly review the cost management theory,related achievements,development environment and related theory.For the provincial enterprises,transmission and distribution business are the key of their main business.Because of the reason, the article put particular emphasis on them.Secondly, it discusses the basic theory and related theory about this study.Then the article define the relevant concept of cost management and the object, the target. And then it describes the method of cost management,including Strategic cost management, Objective management, Responsibility cost management, Activity-based costing management,Standard cost management. Thirdly, it analyzes the overview, the features of production and management, the situation of the provincial enterprises.Besides, it raises the problem of cost management and analyzes the reasons.With OFGEM cost management experience,which is the electricity regulator in UK,and the experience of JEA,which is a electricity enterprise in United States,the article provides some advise to improve the cost management of the provincial enterprises,especially on the improvement of the overall budget,project cost management and activity-based cost management,and the measure to improve the cost-conscious.In recent years,there is a lot research on the cost management,but a little about the provincial enterprise of State Grid,discussing by only one method.The theory in the filed need to develop.There are a lot of common among the provincial enterprise,such as organization structure,cost structure and so on.So the theory could be used in all the provincial enterprises.