Research On Cost Drivers And Control Methods Of A Logging Company

At present,with most of China's land main oil field into the late mining,in order to maintain production at a certain level,which result in huge cost,oil companies face greater cost pressures.At the same time,since the latter half of 2014,international oil prices continue to fall,leading to a significant reduction in the oil industry exploration and development investment.Faced with such a complex environment,exploration and development of the overall demand for logging technology services is to reduce costs and improve overall efficiency.The implementation of low-cost strategy has become an important measure to enhance the competitiveness of the logging industry.The first step in improving the competitive advantage is to identify the core cost drivers for logging operations.Therefore,by analyzing the cost structure of A logging company,finding out the core driving factors of logging operating costs,and then making the targeted management and monitoring to key cost drivers,will help A logging company control logging operations Cost level of expenditure.Based on the theory of cost drivers,this paper analyzes the main cost drivers of A logging company by using multiple regression analysis.Firstly,it makes a review of the Activity-Based Costing,Cost Driver Theory and the Development and Evolution of Enterprise Cost Control Method.Secondly,it analyzes the cost structure and cost control of A logging company.By analyzing the basic processes and methods of the cost control of A logging company,it find cost quotation problems of A logging company.Based on this,the logging process is analyzed,and the main cost drivers are found by multiple regression analysis,which are the number of wells,the depth of wells,the number of successes,the explanatory meter and the running time.Finally,based on the cost drivers to make the cost budgeting and the targeted cost allocationfor A logging company,and also give suggestions according to the cost control methods.