Research On Implementing Standard Cost Management Of D Company In Shengli Oilfield

As an important strategic resource, oil plays a very important role in industrialization andmodernization of the country. In recent years,the high profits brought by rising oil prices willcover up the rapid growth of China’s oil enterprises of oil and gas production cost. The gasproduction cost of China petroleum enterprises of oil is too high,which seriously weakens theinternational competitiveness. The traditional mode of production and cost management hasbeen unable to meet the requirements of the development of China’s oil companies. The oilcompanies need to establish a comprehensive information standard cost management system.This paper bases D oil company as the main body,it is based on the basic theory ofmodern cost management,combined with the idea of target cost management and operatingcost management,according to the actual situation of the D oil company, based on the ERPfinancial accounting system,cost budgeting,accounting and cost control are combined to buildstandard cost management system that applies to D oil company. The system is on the basis ofanalysis of the D Oil Company’s fundamentals,analyze cost behavior in order to establishoperating and divide operations center, in the point view of the activity drivers,it uses thesequential method,upside down method to determine the cost of standard. Develop standardcost fixed against the fixity of the cost of the project; develop operating standards byanalyzing the changes in motivation of short-term changes and long-term changes. Thenregard standard cost as a target,using standard cost variance analysis method to findineffective and inefficient operations timely,Supervise and control the production costs in thecourse of business.