Research On Cost Management Of County Power Supply Enterprise

In the background of global economic downturn and ever-changing economic environment, most of the enterprises emphasis on internal cost control and enhance the management level so as to improve the efficiency of the enterprises to obtain competitive advantage. After the reforms of China’s electric power system, the separation of plant and net renders that power supply enterprises become into the independent legal person specializing in electric power transmission and distribution and marketing. Especially in the deep water phase of the electricity market reform, with the continuous rise of domestic CPI and serious losses of power generation companies, the country, in order to ease the power generation business difficulties, adopted a policy of "increase tariff but sales price"; thus power supply enterprise serve as a balance of income under macro-control. In this situation, the power supply enterprises pay attention not only to the market-oriented reforms, but also to intensive management. Therefore higher requirements needed in terms of the cost management of power supply enterprises.Currently, as the basic operational unit, China’s county-level power supply enterprise, subjected to the superior power management integration and the intensive financial management mode, has weak awareness of cost control, defective cost budget management system, comprehensive functional organization setup and clear system specification, and then cause an unreasonable, serious waste of money; thus financial efficiency is low and profitability has remained low. However, because of industrial characteristics of the county-level power supply enterprises, the county-level power supply enterprises need to find effective cost reduction space under the quality assurance and the premise of the safe and stable operation of power grids, which becomes a crux of county-level power supply enterprise cost control. Therefore, building a cost management system has great practical significance to the county-level power supply enterprise.According to the basic theory of cost management, this thesis first introduces the basic theory of power supply enterprise cost management. Secondly, this thesis analyzes the county-level power supply enterprise cost management features, management present situation and appropriate cost management method. Thirdly, as an example of A county-level power supply enterprises, the paper, combined with actual situation, constructs standard cost management system and operation method of the specific management process based on A county-level power supply enterprise. Finally, the thesis put forward the cost management guarantee system referred to the county-level power supply enterprise.