On The Methods Of Cost Control On The Basis Of Enterprise Value Enhancement

Cost control in management has become the top priority for enterprise value enhancement in an increasingly competitive business environment. Emphasis on the hidden cost, environmental cost, research and development cost, executive compensation cost and cost of great portion and greatly affecting the upgrading of the enterprises are key factors of comprehensive cost control, and enterprise value enhancement. In the21st century, more and more enterprises begin to pay attention to the deeper meaning of the enterprise value, to explore the road of sustainable development, maximize cash flow, and minimize capital cost to achieve the goal of sustainable development. Enterprise value and cost control are complementary, the former is the ultimate goal of the latter, while the latter is the key link of the overall enterprise free cash flow, and whose level directly determines the achievement of enterprise value. Therefore, a combined and further discussion on the enterprise value enhancement and cost control is of strong practical significance.This paper discusses the methods to control cost on the basis of enterprise value enhancement applying methods like survey, empirical research and theoretical analysis. First, the author makes in-depth understanding of the current situation of the value and cost of domestic and foreign enterprises, points out the key points of cost control on the basis of enterprise value enhancement, and analyzes the potential problems and causes. Second, enterprise value and cost control are closely linked to further discuss the cost that seriously affect the enterprise value but is always easily overlooked. Moreover, an empirical analysis of executive pay cost and the enterprise value shows their weak negative correlation. In this paper, National Grid is taken as an environmental cost management and control model, whose case study points out the best ways for enterprises to carry out environmental cost control. Finally, the author proposes a few methods to establish the concept of cost control, improve cost control environment, reasonably control the cost project of great importance, and make better use of lean cost control on the basis of enterprise value enhancement.This paper is that it links cost control and enterprise value-discussing cost control on the basis of enterprise value enhancement-specifying the points to reduce or rise cost, and vigorously promoting a lean cost control method, allowing companies to adopt methods of cost control that are more in line with the objectives of sustainable development of enterprises.