A Study On Project Cost Control Of JL Company Based On Objective-Responsibility Cost Management

In the past two decades,China’s infrastructure investment has been increasing rapidly,especially the railway industry investment has been at a high level.Since the propose of " Belt and Road "initiative,high-speed rail has become a business card of our country.As an important participant in railway construction in China,railway supervision also grows rapidly with the rapid development of railway industry.Since the 1980s,railway and other engineering construction supervision enterprises in China have emerged constantly.The scale of the enterprises has been also expanding.JL,as a professional supervision company under China Railway Engineering Corporation,has grown into a large scale professional engineering supervision company in the railway supervision industry for more than 30 years.Since the establishment,JL company has participated in the construction of dozens of important railways in China.However,with the continuous expansion of the enterprise scale,the management problems of the company are becoming more and more prominent,especially with the continuous reform of the supervision industry,the project profit margin is declining,and the cost control problem has become an important factor affecting the development of the company.The application of target cost management theory and responsibility cost management theory in our country has been relatively mature,especially in the construction industry.However,there are few related research results in the application of engineering supervision enterprises.This paper will combine the target cost management theory with the responsibility cost management theory to design a complete set of project cost control process for JL company’s project cost management.First of all,through the research of the target cost and responsibility cost,this paper summarizes the related research results.Then the target cost theory and the responsibility cost theory are discussed in an all-round way to find the theoretical basis for the combination of the two theories.Next,this paper introduces the cost management method used by JL company at present,and analyzes the problems existing in its cost management by using relevant theories,and then analyzes the reasons.Finally,using the combination of target cost and responsibility cost management theory,a new cost control method is designed for JL company,and the project A of JL company is taken as an example.This paper discusses the process of the application and further promotion suggestions.This paper also puts forward comprehensive and detailed relevant safeguard measure to make sure that the objective-responsibility cost control method can be implemented smoothly in JL company.This paper makes innovation in the combination of research on the target cost and responsibility cost.The complete application process in the project A of JL company makes it more convenient for the application of the research results to JL company.At the same time,it also expands the application scope of the two theories and applies them to the cost management of the engineering supervision industry,which provides a useful reference for the cost management of the supervision enterprise.However,because a new cost management method is put forward,and the period of JL company project is generally more than 3 years,only one year of application process and effect of the project were studied,with the result that the whole process of the project was not completed.