Researches On Cost Control Of ZX Cement Company

As one of pillar industry in national economy,cement industry has suffered from the serious overcapacity in recent years.And the homogenization phenomenon has become increasingly obvious,for which it is harder for enterprises to acquire the surplus profit taking the advantage of the technology and advanced equipment.What's more,as global giants in cement industry entered into the Chinese market,the profit margin of domestic cement enterprises has been narrowed.Facing such a situation of fierce market competition,the crucial measure that cement enterprises must take is to reduce the cost by strengthening internal management,implementing the cost control effectively.Only in this way,can cement enterprises survive and gain competitive advantages.At present,the cement industry in our nation is in the key period of deepening the adjustment of industrial structure,cement industry will evolve as competition among a few large-scale cement enterprises.As the leader in the Tianjin cement market,Tianjin ZX Cement Plant is in an urgent need to formulate and implement the cost control institution which conform to the reality,thus,the enterprise can acquire success in the fierce market competition.This paper introduces theories concerning standard cost control and its history,as well as as the concrete steps of standard cost.Through the analysis and research of the current developmental situation and cost-control situation in cement industry and Tianjin ZX Cement Plant,We could come to the conclusion that the cost management model currently used by the enterprise is far from effective to control the cost.In addition,the critical point of cost control is converting from post-action cost-control to pre-action and in-action cost-control,the enterprise should adopt more effective standard cost management,in order to control the cost effectively.Based on the developmental and cost-control situation in Tianjin ZX Cement Plant,the paper made the overall designed project of transforming into standard cost-control institution in terms of cost-control methods.This designed project,ranging from the implementation principles and working schedule of standard cost system,apply the system into corporate budgeting and performance evaluation.Through the establishment of a viable cost management system catering the features of enterprise,the pre-action,in-action and post-action cost-control could be actualized and the method of cost-control used by ZX Cement Plant could be perfected.Finally,Tianjin ZX Cement Plant has access to the standard method of cost-control that suits thecost-control requirements best,which provide the alternative blueprint for cement enterprises to reduce their cost effectively.