Cost Optimization Management Of Petro China Marketing Company Based On Target Cost Method

With the continuous release of administrative restrictions on the domestic refined oil market,the number of refined oil companies with retail,wholesale and storage qualifications has increased,and the capacity of refined oil has expanded.Meanwhile,the apparent consumption of gasoline and diesel has reached a plateau,and the oversupply situation has intensified.Under fierce market competition,the role of cost management is becoming more and more prominent,especially in homogeneous products.Maintaining the low-cost advantage enables Petro China Marketing Company to take the lead in the competition.Using the target cost method,this paper analyzes the cost of Petro China Marketing Company by selecting typical companies and 2019 data.Firstly,it puts forward that there are two problems: the decline of benefits and the rise of expense per ton.Then,using the target cost method,the actual cost and target cost are compared and analyzed from the two perspectives of actual procurement cost and target procurement cost,as well as expense per ton and budget target.Adjustments are made after analysis abovementioned.In terms of actual procurement cost,three new settlement schemes are put forward based on the way of local refining listing price and CIF price,and the scheme with small change,which means gasoline or diesel based on the local refining listing price,is selected to reduce the resistance.In terms of the expense per ton,different measures are taken via improving the sales volume and reducing the total expense.Finally,the suggestions are also given,one is to increase the development of new energy and non-oil business,and the other is to improve consumption tax laws and management system by the national tax authorities.