Research On Problems And Strategies Of The Cost Control For Liaoning Petroleum Equipment LH Company

Under the severe competition of market economy, cost is an important factor impacting the success or even the fate of an enterprise. Meanwhile, cost of production of operation is a major part of enterprise cost. Therefore, it is significant to calculate the cost of production of operation, effectively control the cost and improve the utilization ratio of resources of enterprise. Oil industry is vital to our energy strategy, with the deepening reform conducted in oil industry, the development mode of “perusing quantity” is changing to “perusing quality”. In addition, petroleum equipment enterprise is indispensable in the process of petroleum production, providing equipment production, maintenance, and technology supporting. Thus, how to effectively reduce the cost while operating regularly and increase economy profit is becoming the focus in petroleum industry.The paper takes Liaoning Petroleum Equipment LH Company as the object, analyzes current situation of cost control in petroleum equipment enterprises, and with the study on related areas both domestic and abroad, it designs the research thinking. The paper firstly analyzes the current situation of cost and cost control in Liaoning Petroleum Equipment LH Company, and finds the problems, including weak cost control idea, incomplete regulations on cost control and defects in each section of cost control. Secondly, the paper proposes effective policies of cost control suitable to the company, including clarifying the perception of cost control in enterprise, regulating related specifications, and optimizing each section, so to promote effective cost control in Liaoning Petroleum Equipment LH Company, reduce enterprise cost while maintaining normal production and operation and improve the competitiveness of the company.