The Study On Cost Management Of JY New Materials Company Under The ’Supply-Side’ Reform

At the central financial leadership group meeting in early 2016,general Xi Jinping formally proposed the concept of ’supply-side’ structural reform.So in the next few years,the ’supply-side’ become the main melody of deepening the reform of economic system.Therefore,it significantly impacts on the business performance and financial condition of represented industries such as steel,coal,and cement.In the past,China’s economy boosted relying on "three carriages" — investment,consumption,and export from the demand side,.However,with the development of the economic situation,the economic development model of this demand side is becoming more and more anemic,even leading to serious economic and social problems.In economics,labor,land,capital and innovation are classified as supply four elements.Only when the four elements can be fully and reasonably configured can the economy grow steadily.Nowadays,the state council and central government realize that it is necessary to make adjustments from the supply side and encourage corporation’s productivity from the strategic perspective that to drive economic growth,while the core of which is to improve factor productivity.Hence,the’supply-side’reform further request corporations to enhance cost management,to standardize asset allocation,and to reduce resource wastes.Meanwhile,the stability and security of capital flows is crucial for the corporation’s operation and development.To some extent,effective cost management could inject vitality for capital flows to maintain the general asset turnover rate at a relatively stable level,which is of great significance on the formulation and implementation of corporations’long-term strategies.This essay is structured as follows:the first chapter introduced the backgrounds and importance of the research through a summary of relevant research home and aboard,as well as a statement of research approach and innovations of this paper.The second chapter is the theoretical basis regarding the theory of ’supply-side’reform and cost management.The third chapter is the present situation and problem analysis of cost management of JY new material company.This chapter first introduces the basic situation of JY new material company,and then analyzes the current situation of cost management of JY new material company,then sum up the problems and reasons.The fourth chapter come up with good suggestions and possible solutions particularly from the aspect of ’supply-side’ reform.In the end,The fifth chapter is the conclusion and prospect of the research.This chapter is mainly about summarizing and generalizing the previous five chapters,coming up with the conclusions and shortcomings of the research,and making the research prospect for the company.The research method of this paper is a combination of literature review and monographic study.Through the literature on ’supply-side’ reform and cost management,the history and development of relevant concepts could be deeply understand and thus an effective theoretical framework regarding the relationship of these two theories is shaped.At the same time,JY New Materials Company was selected as a particular case to conclude the strengths and weaknesses comparing with its competitors.From outside to inside,from the shallower to the deeper,the firm cost value chain,the current condition of the cost management and the company cost control measures and the severe problems we are facing.In the last,aimed at the problems the company faced on the respects of cost management,combined with the solutions that put forward in’supply-side’ reform,particularly stand by the labor,land,capital and innovation factors,putting forward constructive suggestions on cost control of enterprises.