| Cost Control is adopted by enterprises as a fundamental way to increase profit.And it is also a major tool for enterprises to face up to the pressure both internal and external. Apart from that, it is essential to the enterprise's development. In recent years, with an increasing number of power plants, including state-owned, private and foreign-invested, getting involved into the construction and operation of the Biomass power generation industry, the Biomass power generation industry has ushered a promising opportunity. However, most of the biomass power generation projects are in great loss, some of them even make losses at the commencement. How to gain advantages in the fierce competition? And how to compete with other power plants with lowest cost? An in-depth study on the above is worth conducting.In the past a few years, the KD Green Energy Development CO.Ltd.( hereafter referred to as “KD”) has been in sustainable development with a moderate increase in sales amount and quantities. But due to the high cost of construction, storage and transport, maintenance and operation as well, the KD has always been in loss. It is fairly urgent for the KD manages to gain sustainable profit and effectively reduce costs by strengthening Cost Control. On the basis of the KD' own condition, This paper analyzes the main problems and reason of KD's Cost Control, and put forward some suggestions on how to improve the mentality and rules, strengthen the fuel cost control and better the budget management. This paper tries to work out a feasible way to solve those problems including cost control, cost management,making profit and improving competitiveness.This paper may offer a helpful reference for the Biomass Power Generation Enterprises on how to introduce new mechanism of cost management. It also promotes the application of Cost Control Theory to the Biomass Power Generation Industry, which fills the domestic gap in this regard and enriches the documentation of the above topic. |
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