Research Of Period Expenses Control Based On Analysis Of Cost Drivers

In today’s machine tool market economy, RMB appreciation, make the products price advantage smaller and smaller, price competitiveness weaker and weaker; international manufacturers from the original distribution in China, turn to producting in China; like Germany and Japan, machine tool industry’s profit model has undergone profound changes and so on, these factors caused the machine tool industry in international competition increasingly. SYJC company as the Chinese and world leader in the machine industry, in the face of such a severe test, should take rational countermeasures, and costs control is one of the essential countermeasures, while the cost driver analysis runs through the whole process of cost control. How to conduct the expense control effectively on the basis of analysis of cost drivers, will be the main task faced by SYJC company.This paper drawing on the existing research results, combines the cost management of SYJC company, makes use of ratio analysis methord firstly, makes preliminary analysis of its costs, found that the cost to income ratio is higher than the industry average, and the period cost to the operating cost ratio increased year by year; secondly using correlation to identify the key drivers of the main components of administrative and selling expenses; finally, according to costs drivers, make the specific control measures for the company’s controllable cost drivers, in response to long-term business competition strategy measures.Conclusions are:First, company’s location, company’s nature, industry attributes, size of the company belong to the strategic level structural cost drivers, which change is not easy, company should use selectively; Second, for the specific cost drivers which can be controlled of the company, company should make a concrete analysis, give full play to the positive role of the driving factors, take concrete measures for negative drivers to control them, that cost control measures taken by the company should depend on the state of the company’s impact on the cost drivers; Third, cost control is a huge system, company should implement comprehensive and systematic control.