Research On Cost Budget Management Based On Cost Control

In recent years,the global economic downturn,China's economy is facing three overlay,downward pressure,coupled with excess capacity,the steel industry demand,high debt,common financial costs are too high,steel industry profits fell sharply.In 2015,there were 19 losses in the 31 listed steel companies in China,and the total amount of losses was as high as 48 billion 200 million yuan.In this context,the central economic work conference put forward the "supply side reform",in which the "cost reduction" is one of the five pillars of policy.At the end of 2015,the Ministry of Finance issued a cost accounting system for iron and steel enterprises to promote the application of cost management in iron and steel enterprises.It is aim to help them to improve economic efficiency,and get out of the "Plight" of losses.The national policy tries to reduce the external cost to improve the operating environment of the steel industry,and enterprises should strive to reduce internal costs,and make profits both inside and outside.The so-called "profit lies in this" means that the cost control is the key to determine whether the enterprise profits or not.Strengthening cost management is always the main theme of enterprise management,and cost budget management is the key content of enterprise budget management.The theory for the study of cost management from never stagnant,cost accounting,cost control method to cost budget,but the framework of research on the limitation of cost budget management in the comprehensive budget management research,rarely systematic research,the iron and steel enterprises into the research of budget management.A Steel Corp is located in Central China,is a veteran state-owned enterprises,once occupied a place in the steel industry.But in recent years,due to the downturn in the industry,the rising cost of raw materials and the decline of product competitiveness.A Steel Corp has been in a state of stagnation for five consecutive years.Although A Steel Corp also actively adopted the "cost reduction" measures,but the effect is not satisfactory.This paper selects A Steel Corp as the research object,and studies the implementation of cost budget management and the effect of cost control.This article in the comprehensive cost management theory,budget control theory based on relevant theories,through searching and reading a lot of literature,comprehensive use of literature research method,investigation method,comparative analysis and other research methods,on the cost budget management and cost control are studied.This article mainly from the following aspects: firstly,introduced the A Steel Corp's comprehensive budget management system and cost management system,and the related indexes were compared with other enterprises of the same industry,and analyzes cost management level and industry Steel Corp A gap.Secondly,the budget management system of A Steel Corp is analyzed,and some problems are found.Such as unscientific cost budget index,insufficient cost budget information and so on.Finally,in view of the above problems,the optimization measures of cost budget management based on cost control are put forward.A Steel Corp hopes to help solve the cost budget management and cost control,improve the budget management system,also hope to provide some reference and inspiration for other iron and steel enterprises which facing severe market situation of cost budget management and cost control.The innovations of this paper are as follows: First,followed by the development of the times,the macro policy factors into the analysis of cost budget management and combined with the information management,this paper puts forward the improvement measures of cost budget management under ERP.Second,this paper adds the ABC theory perfect to cost budgeting,promotion of lean production and management.This paper combines product life cycle theory with research.