Cost Control Of Company B In The View Of Comprehensive Budget

Cost control is a systematic engineering.Cost control through comprehensive budget management is helpful to realize the whole process of cost control and achieve the goal of cost control.According to data released on the website of the National Bureau of Statistics as of December 2020,China has 2,459 water production and supply enterprises,including498 loss-making enterprises.As a necessity for residents,the selling price of tap water cannot be determined completely according to the relationship between market supply and demand and the operating conditions of enterprises.Water supply enterprises cannot change the demand.Therefore,in order to achieve sustainable and stable development,they can only start from the cost and strengthen cost control.Compared with other enterprises in the same industry,the gross profit margin of company B’s tap water supply business is low and the leakage rate of pipe network is high,so it is particularly important to strengthen cost control.According to the needs of company’s B digital transformation and refined management,cost control can be carried out in the whole process under comprehensive budget management.Budget items can be directly connected with accounting items,which will not increase the workload of cost control of relevant personnel,and is conducive to cost control through budget.Through in-depth company B research,obtaining firsthand data,the basic situation of company B,the situation of cost control has a certain understanding,further comb analysis found that company B cost control to cost control standard is not perfect,cost control execution weak,lack of cost control examination evaluation system and network cost is difficult to control.According to the basic process of comprehensive budget management and cost control process,the whole process cost control of company B is carried out through three stages: pre-process,in-process and post-process,and the cost control system of company B under comprehensive budget management is constructed.Divide the responsibility center,determine the cost control target according to the budget target in the budget preparation stage,establish the cost control standard with the norm cost method and prepare the cost budget to realize the cost control in advance.In the budget implementation stage,through the decomposition and implementation of budget indicators,the whole process of cost control,monthly production cost budget operation report analysis to achieve cost control.Budget assessment stage through budget implementation results analysis and budget assessment evaluation and reward and punishment to achieve cost control.Cost control in advance stage,determine the cost control objectives of water supply center,including gross profit rate,unit water supply cost,leakage rate,etc.,take fixed posts and staffing for personnel,direct material unit fixed consumption,and prepare production cost budget.Stage of cost control make the whole process of cost control to control each link,with the help of information system realizes the real-time control budget and analyze the budget implementation,cost control after the event phase report through the analysis of the annual production cost budget and cost control target a table evaluation and cost control system to achieve.Put forward the guarantee measures of the cost control system under the overall budget management,perfect the cost control system,establish the budget organization,strengthen the information construction and personnel guarantee.