The Research Of Activity-Based Cost Cntrol In Oil Refingding Plant Of Daqing Petrochemical Company

As China’s economy accelerates gradually the process of international economic integration, diversities of oil companies have a significant influence on national economy and social development which were facing fierce competition in the market. In addition, the energy shortage also brought a great threatens to the national oil companies. Therefore, Job Costing Control for the oil company is particularly important. Currently, a majority of oil companies are still using Conventional Costing Control as their main method to control company’s cost. To some extent, there are some weaknesses for the firm. Although it is possible to meet the basic needs of internal management, the Traditional Costing Control is not explicit and using simple way to run its defects, which is resulting in the limitations of using traditional method. The operating Cost Control is a foundation method based on Job Costing Control, which is focus on accuracy and the goal of a company. Meanwhile, it develops a more comprehensive way to make up for the deficiencies of the traditional Costing Control and improves the effectiveness and competitiveness of the firms. Thus, it is beneficial for the oil company to using operating Costing Control which could save costs, improve efficiency, enhance market competitiveness and effective measures during the new economic development environment.This article is based on the theories and basic principles of Job Costing Control, processes of Operating Cost Control to analyze the differences between Conventional Costing Control and Operating Costing Control. Article that is focus on Daqing Petrochemical Company refinery Costing Control is to explain its using problems, production features, corporate strategy and goals. It also illustrates that operating Costing Control’s advantage, combining analysis of operating costs applicability and implementation of control conditions. Comparing with different company’s operating costs to make a decision, whether the firms are using Job Costing Method to control the entire production process, providing efficiency and useful suggestions for other oil company.