Cost Management And Control For The Telecommunication Design Project

With the development of China's market economy, competitions among firms and industries have become more and more fiercely in the last decade. Furthermore, other external environment factors, which could affect the entire business environment, have changed constantly. As a result, overall operating costs in most of China's firms have increased continually. Therefore, to improve enterprise operating cost management and control shall bring distinct benefits to enterprises for their sustainable development and profit maximization. Theoretically, enterprise's operating costs consists of direct cost and indirect cost. However, according to a recent statistics survey, at present, most of the operating costs in China's telecommunication design firms come from direct costs, which includes human and material resource cost when the project design have occurred. Therefore, for a telecommunication design firm, doing well in managing and controlling cost of project design is good for decreasing enterprise's overall operating cost and enhancing its core competitiveness. The main question of this study is how to utilize modern cost management theory with enterprise's proper characteristics when performs cost management and control during a project design. The following study will be focusing on the answers to this question and the relevant sub questions.The author has engaged in designing telecommunication project for years. During this study, the implications of the findings for theory and practice are discussed. Modern cost management theories will be used to analyze actuality of cost management in telecommunication design firms, as well as problems found during performance. An improved cost management and control method will be suggested, which is suitable for telecommunication design firms. At the end of this study, a case study will be used to discuss the feasibility and the validity regarding implementation of the new method. This will also summarize those unsolved problems mentioned previously and further study and objectives will be carried out.