Research On The Standard Cost Management In Provincial Power Grid Enterprises

Standard cost is established in advance according to project cost. It is the unit product cost target which should reached under the current production level and effective operation and management. Standard cost is not actual cost, but a target cost, also known as"should cost". In order to meet external regulatory requirements and improve business conditions, enhance the corporate cost management and standardization construction level, Hunan Electric Power Company needs to promote the standard cost management. Implementing the standard cost management, the Electric Power Company will ease its pressure on power grid construction, reducing the cost of power grid construction, and is more conducive to a reasonable standard transmission and distribution cost, effectively controlling the transmission and distribution cost, furthermore improving company performance.This paper has deeply analyzed cost management features, current situation and problems of the company through applying the method of combing theory and practice. What's more, it has comprehensively designed the company's scope in applying standard cost management, basic principles, work ideas, cost projects and implementing measures, making advice to the company so as to better apply standard cost management. This chapter is divided into six chapters. The first chapter analyzes the background and significance of this research and summarizes the research thought, research methods and the innovation; the second chapter elucidates the basic theory including the overall budget management, target cost management and the overall budget management; the third chapter describes the status of Grid cost management and problems. The fourth chapter describes the necessity, feasibility, principles and specific application methods for applying standard cost management in electric companies. The fifth chapter summarizes the processes and makes advice for Grid companies in applying standard cost management. The sixth chapter establishes the standard cost management system in Grid companies.