Cost Research Of Xinjiang Sugar Enterprises

At present, with the deepening of China’s reform of socialist market economy, both the domestic andinternational markets are in increasingly competitive circumstancs. Xinjiang Sugar enterprises are facinggreat challenges. Due to the particularity of sugar products, cost directly affects the market competitivepower of enterprises. However, due to the problems existing in many sugar enterprises in acquisition of rawmaterials, processing and management, enterprises are facing the situation of high consumption, low output,and little profit. Therefore, a scientific cost management system should be established to lower the cost ofenterprises on the basis of quality assurance of the products and close attention on cost control of theenterprises.Considering the developing situation of Xinjiang sugar industry, this paper classified the costs of sugarenterprises into various types, and defined the cost element and cost composition of these enterprises.Besides, contrastive analyses on the unit cost of three Xinjiang sugar enterprises were done in this paper.The author obtained a large number of real and effective data through a questionnaire survey on farmersand an internship in a sugar enterprise. Starting with the current situation of the costs of sugar enterprisesand the problems which led to the difficulties in cost reduction, this paper did a comprehensive analysis onthe reasons of cost reduction difficulties. Besides, a strategy was raised on cost control of sugar enterprisesafter taking the cost control for raw materials, production and operation into consideration.Through an empirical research on Xinjiang sugar enterprises, a conclusion was reached that the keyfor cost control of sugar enterprises lies in raw material costs and operating costs. Cost reduction of anenterprise can be achieved through a better management of the beet farm and the adoption of fine varieties,so as to improve the quality of the raw materials. Besides, the operating cost reduction of an enterprise canalso be achieved through technical innovation, transformation of the operation and management mode, etc.