Research On Period Cost Control Of DR Group Company Limited By Shares

Since 2008 the year it as a whole was listed to 2013,DR Group’s growth of business revenue is 1.01 times,but the growth of general expense,selling expense and financial expense is 1.31 times,more than the business revenue growth,which makes a result that the growth rate of operating profit is decreased.Therefore,when the revenue growth is expanding,It is a very urgent task for DR Group to take effective Units to control the cost and expense growth at the same time.Cost Drivers refer to the factors that cause cost,directly affecting the cost structure of the enterprise, and the control Units based on cost driver is more targeted.This article attempts to analyze DR Group’s period cost from the perspective of cost drivers and put forward corresponding proposals.This paper takes DR Group as the subject of the study,according to DR Group 2000-2013 financial data in capital market,defines the cost drivers as the starting point.Firstly,on the basis of the research and results that has existed, through the analysis of the trend and structure of cost status of DR Group,the object of cost control is not just the cost of products,should also includes general expense and selling expense; secondly,from the cost drivers perspective,respectively analyzing the driving factors of the total cost and general expense and selling expense detail project; finally accumulating DR Group cost drivers and classifying them as controllable or uncontrollable cost drivers,structural or Execution cost drivers and resource or activity cost drivers,and putting forward the corresponding suggestions on controllable cost drivers.The conclusions of this study are as follows:strategic cost drivers of the DR Group includes asset scale,area,the nature of the company,executive compensation, and the number of accounts receivable subsidiary level; Activity Cost Drivers of the DR Group includes the number of management and logistics personnel and senior management staff,marketing personnel quantity,the number of fixed assets,intangible assets and fixed assets,the original value of housing and buildings,primarily associating with the allocation of asset and personnel.To above cost drivers,proposed control the Units include having appropriate control of enterprise scale; choosing the appropriate location; enriching content of executive rightly compensation;strengthening management of account receivable;rationalizing allocation of fixed assets,intangible assets;allocating the optimal number of personnel.