Study On Internal Control Of Cost Of BZ Transportation Group

Since the reform and opening,following the arrangement of the central government to establish modern corporate system,a large number of state-owned enterprises were converted from common ownership to shareholding ownership and adopted corporate governance to adapt to market economy.Despite the structural characteristics of a modern corporate system in corporate enterprises that were born out of SOE reforms,problems such as putting personal charisma before regulations and experience before scientific standards do exist.In terms of internal control of cost,these companies generally have formulated management systems over cost,such as management systems over payment,fuel,repair cost,travel expenses,communications and hospitality cost.These systems are part of internal control,but they do not form an entirety of a system and are far from meeting the requirements of a comprehensive internal cost management system.That said,this essay will proceed from the perspective of the content and basic theories governing internal control of cost and analyze the situation of internal control of cost of BZ Transportation Group.Problems will be identified and targeted solutions will be offered,so as to provide useful reference for improving the internal control of similar corporations.Founded in 1952,BZ Transportation Group had been a transportation company of common ownership.It was converted to a company with limited liability owned solely by the state.In 2004,the company adopted mixed ownership after diversifying its ownership.Its business covers transportation of passengers and goods,logistics,storage,automobile sales,real estate development,driver training,construction,property management and tourism.The essay has six chapters: The first chapter is introduction.It states the background and significance of the study and summarizes the current studies home and abroad on cost control.The second chapter elaborates on relevant theories over internal control of cost.The third chapter focuses on the current situation of internal cost control of BZ Transportation Group,including the company 's history,organization structure,cost of the main business and the internal cost control.The fourth chapter analyzes the problems in the control system and causes of the problems.The essay looks into the loopholes of the control system and expounds on their causes.The fifth chapter provides suggestions on how to improve the control system.The sixth chapter will conclude the essay and explore the prospects.The summary of the study and exploration of the prospects of relevant study on internal cost control in other similar companies will be presented in this chapter.