Research On Cost Management Optimization Of Milliken Company

Cost Management is an eternal topic of development of the company, it is the most important part of the organization operation, and however, cost management work is good or not depends on how deep you know the process of the company and how workable costing management system customer design for the company according to the characteristic. Because many companies are cognitive deficiency of costing control and management, which resulting costing management system is not perfect and low costing management work efficiency, higher business operation cost and loss competitive power. Therefore, how to optimize the system of cost management has been became a very import research topic for the company developing.Milliken is a 100% US invested company with 150 Million RMB invest capital, commercial carpet business take 20% percentage of its total business volume, the products manufactured by China plant will sold to China and Rest of Asia region. The costing management work of Milliken Zhangjiagang is almost copy from Milliken US, but due to limited resources, less operation experience, and the shortage of management skills and idea, which caused there is some improvements space for Milliken Zhangjiagang.This paper study characteristic of Milliken company and particularity of Commercial carpet business, using the theoretic of cost calculation, cost control method and cost control system to deeply analysis cost management system of Milliken, to find out the existing problem and propose solutions and improvement measures accordingly, such as: optimize Total budget management, optimize cost calculation, optimize cost control system etc., aiming to achieve cost management system optimization.Cost management improvement through the optimization of cost management system of Milliken, which can reduce the cost of operation and improve the market competition, which also can make a good business foundation for pursing the long term development.With the China market more open, which will attract more invest opportunities to China, there is some profound meaning to research the cost management system optimization of Milliken, it will provide references to other foreign investment company and also for local middle and small size company.