Application Research On The Cost-volume-profit(CVP) Analysis In The CQ Drill Company’s Benefit Evaluation Of Oil Blocks Under Activity-based Costing

Since there are a lot of changes happened in the drill market, the key point of production must modify with it. Optimize the arrangement of production; develop oil blocks which in good situation first, become the primary task of the decision making. With the rapid updating of science and technology, the percentage of indirect cost has increased dramatically. So, the traditional CVP analysis method is not suitable to do the benefit evaluation for oil blocks and another model is desperate needed.This paper takes the CQ drill company as the study case, based on the available research and some relevant theories analysis the organization structure; cost behavior; the traditional method used in nowadays benefit evaluation and its flaws. Then, after the feasibility research of CVP analysis under ABC theory, takes the features of CQ drill company into considerations, this paper builds a suitable analysis model for CQ drill company’s benefit evaluation. This new model’s effectiveness is testified by the comparative analysis between the traditional method and this new model used the historical data of 2010-2012.The result of this paper is not the end of this research. According to the fluxion happens in the extra and intra environment of the company, the model evolved by this paper may be replaced sooner or later. But for nowadays, this model is definitely the most suitable one even with little flaws. And this is the space for next further research.