Research On Cost Control System Of Cement Enterprises

Cement products have been playing an important role in the economic construction of our country. As the commodity economy market becoming more and more mature, and cement products have homogeneity in different companies, cement products are becoming much more competitive and price war among different companies become even more violent. So the lower product cost become an effective weapon for cement companies to catch and keep market and competition. Cost control is series of methods and measures that companies use combined with the characters of main business process such as product development, purchase, manufacture and sailing to low costs. Paying attention to controlling product costs is very important for companies to resist the pressure from both inside and outside. Dongping Zhonglian Meijing Cement co., LTD was founded on February 12,2007, and its main business includes cement and cement clinker production and sales. With the cement industry overcapacity, increased competition. Enterprises to improve economic efficiency and cost control has become the inevitable choice.This paper uses literature research method and case analysis method. Firstly, it elaborates the theory of cost control based on predecessors’research. Then, it analyses current situation of cement industry and Dongping Zhonglian Meijing cement co., LTD, summarizes characters of cement industry and the problems and risks faced by Dongping zhonglian beauty cement co., LTD. The main competitive advantages include:main controlling shareholder, production scale advantages, the main raw material and resource advantages, superior geographical position and convenient traffic conditions. Its cost control risk and problems include:product cost control responsibility system is not perfect, the lack of investment before the cost control, the rising costs of raw materials and power, environmental protection costs rise, the lack of product design and development of the low level of cost control and cost budget.Thirdly, it reconstructs the cost control system for the company. The system on the basis of the principle of cost control system, goal setting, method selection and the main cost control key points for the overall framework, in view of product development, product procurement, product production, financial cost, management cost and so on the main business process respectively illustrates the cost control measures. Furthermore, it gives some measures and suggestions for management, intending to provide theoretical and practical guidance in cost control for cement companies.