Study On The Improvement Of Cost Control Of Hongda Energy Company

Lee. Iacocca, Chrysler president, said that:" there are two ways to earn much more money, sales more and cut down the costs". Cost control and cost management is a key link of enterprise development and growth.With the developing of the socio-economic environment, and the technical conditions changes, the concepts and methods of cost control also need to be developed.In the beginning of the Hongda energy company established, cost control was the most important problem in the daily management of the company, and made some effectives. For example, made the history database of the equipment, but with the developing of Hongda Energy Company, the way of cost control management is not fit for the company, and appears some new problem.I has engaged in the cost control work for many years in the Hongda energy company Through three years of MBA study and theory with practice, I analysis of the current situation of Hongda energy company, and find the main problems of Honda Energy Company are the failure of the traditional accounting Modalities and budget control. The traditional accounting subjects can only reflect the increase or decrease in the cost, but unable to evaluate the efficiency of the actual business and the suitability of business types cannot be decisive. Honda Energy Company adopts the zero-based budgeting to approve budget of the units, and only audit and control the budget of cost. I think this way of the budget cannot guide the enterprise to optimize the allocation, and the enterprise has not The inherent power of change, the company spends how much money depend on Issue, without thinking about how to improve efficiency and achieve the rationalization of the cost.On the basis of this situation, the Honda Energy Company proposes the improvements based on activity-based costing control.There is not too much theory discussion in this page, using Activity-based costing to solve the cost control problems of Honda Energy Company, in order to raise the cost control management level, and to provide experience for any other company.