Research On Improvement Of Cost Control Of Business Faith International Ltd

The essential requirement of enterprise is profit."Savings" is often considered as an important way to realize profits like "Increase revenue". Traditional cost control objectives focused on reducing costs, including standard costing and budget control, the core of their work is "saving, thrift and savings". Miles’s Value Engineering method, Robin Cooper and Kaplan’s" Hyperactivity due to cost" opened a new way of thinking for the system management of cost, gradually fostered the concept of cost-effective, modern enterprise system dominated method of cost control, dominating the system of modern enterprise’s cost control methods.Garment industry is a pillar industry in some countries and regions, it is related to employment, foreign exchange earnings and so on. There is a high degree of globalization in this industry, Around the garment enterprises use a variety of means to competing shopping. Foreign counterparts controlled the upstream Cloth weaving and development and costume design tour, having a strong brand effect in the market, China’s garment industry focused on creating a world brand, at the same time, they must adjust the cost of the strategy to improve the methodology of cost control.Business Faith International Ltd is a typical foreign-trade clothing manufacturing company, established in the mid-nineties by three state-owned joint venture in Hong Kong, Mainly engaged in orders of Knitting and clothing from the U.S. market. At that time exports of textiles was also affected by quota restrictions, The company take the lead to establish overseas production bases, forming a unique overseas domestic feed production mode,it was a very brilliant period for company from1999to2005. The market environment happened huge changes after2007, the original production bases overseas constantly were abolished. Companies unable to change its business strategy timely, we witnessed the performance all the way down. So far, the company has two production bases in China and Jordan, the pressure of operating is huge, particular the cost control pressure.I am now responsible for the production and operation of Business Faith International Ltd, after a thorough investigation and argumentation, the effective control of business costs is the only way for sustainable development.This article regard the status of Business Faith International Ltd cost control as the research object, having collected a large amount of literature, trying to learn the theory of modern enterprise cost control methods and the advanced experience of other enterprises, analyzing of the problems cost control, adjusting the company’s Cost strategic positioning to the low-cost strategy included in growth Strategy, analyzing the costs of11value activity from the overall cost structure and the constitute of a single product separately. Found three key structural driven factors and four key executive divers that affect the company’s cost, Clearly three cost Control aspects which need to improve From the ratio of the cost structure, proposed Corresponding improvement measures and security requirements.Some related improved solution has implemented more than a year, during this period, Business Faith International Ltd has achieved good economic benefit, hoping the research of this article can have some reference value to other company’s cost control.