DB Cost Control System Analysis And Improvement

Since Chinese Open Policy and Reform, companies developed quickly withChinese economy. As domestic and international economic environmentchanging, resource, environment protection, and labor protection haschanged accordingly. Enterprise cost is increased resulting from ongoinginvestment on labor, energy transportation and environment protection. Atthe same time, market competition is becoming severe. In order to keep andenlarge its market share, company has to fight with price war whichfurtherly squeeze margin. To improve margin and survive in the market,companies have to improve their cost controlling policies.Impacted by global economic crisis, Chinese central air-conditioningmarket is depressed from year2009. To be a typical air-conditioningmanufacturer, DB company increased its production volumn and sales, butits margin shows a declining tendency.The cost control system of DB company has been backward and could notfollow up the changing and complex economic environment. The defects areobvious: the traditional cost control concept is lacking of strategicvision; the old control system is mainly focused on production process andbook-keeping. There are some control problems in its sales, R&D, production,logistics and administrave processes. DB company needs all round andcomprehensive cost control system for future development.On the basis of relevant cost control theories, I analyzed DB company scurrent cost control system and existing problems in the paper and advisedimproving solutions. I hope it can help the over100year history companyto decrease its overall cost, compete successfully in air-conditioningmarket, obtain more market share and improve its brand name recongization.