Research On Cost Control Problems And Countermeasures Of JGTY Company

As an inevitable economic category,cost plays an important role in the enterprise management to realize the profit maximization as the fundamental purpose under the condition of market economy.For copper smelting enterprises,such kind of traditional economy,the cost is not only the competitive but also the lifeline.At present,the international economic situation is in the doldrums and the downward pressure on the domestic economy is still large.The important economic indicators have a significant decline in the ratio of high growth and structural deflation situation appeared.Due to the repeated investment in the industry and the increase of the same type of enterprises,the competition is becoming increasingly fierce.Copper smelting industry has shown a trend of excess capacity and slowed down of demand.Affected by this,copper prices fell sharply and persistently low,which may become the new norm al in the future copper industry.But in recent years,copper processing fees has remained high,copper smelting industry is still profitable.However,according to the periodic characteristics of the industry development,copper processing fees will not always be high.It’s possibly to fall in the next two years.At that time,copper smelting enterprises profits will shrink significantly or even a loss.In the face of unpredictable development trend,how to seize favorable factors in the existing market at the present stage to expand the business income,how to lay a solid economic foundation for future development to establish the competitive advantage in the industry,cost control is an important issue attaches great importance and needs to be solved.This paper takes the JGTY company as the research object,based on the concepts and theories related to cost control,through extensive literatures and combined with the theory of cost control and the basic principle of management,the author makes a systematically research on the cost control of the JGTY company by integrated use of literature research method and site survey methods.Through the analysis of the current situation of cost control of JGTY Company,this paper pointes out the existing problems of cost control in the company.Based on the view of value chain,the writer puts forward measures to improve the cost control of JGTY Company from the four aspects of the supply of raw materials,production organization and control,product sales and logistics and enterprise management.In addition,this paper has some innovations.It begins from the JGTY company cost control factors and analysis the status and causes of the cost control of the company,innovative combined the cost control theory and the actual conditions of JGTY Company.At the same time,it links internal and external key nodes of the cost control and effectively coordinate their relations,surpassing the traditional cost control theory and method,innovative adopting the view of value chain.And then this paper puts forward some countermeasures for improving cost control to promote the continuously establishment and improvement of cost control mechanism in JGTY Company.