Research On Cost Management Of COSL

Because of the sharp decrease in international crude oil prices,China Oilfield Services Limited(COSL)resulting in a loss and is under huge survival and market competition pressure,that rings the alarm bell for strengthen cost control.What we need to do now is to give an overall examination of past cost control work to find out weaknesses and loopholes,to tap it's potential,for enhancing company's competitiveness.This paper takes COSL as the research objects,and illustrate the idea by followin g the line of Theoretical Research-Current Cost Control Situation-Existing ProblemsSolutions.To lead out this paper's significance,the paper first introduces COSL's industry background and international situation,main business,status of competitor's cost control management,and the difference compared with other non-state-owned competitors with the practical experience from the writer herself,this paper analyzed various factors hindering the development of company cost management.Procurement decentralization,poor supplier management and loosely market survey brings growth workload.Ambiguous responsibility of relevant departments and unreasonable performance indicators etc.Lacking of cost management motive assessment and incentive system and imperfect information management system development too,increase cost management difficulty.Aiming at the problems existing in the current situation of company cost management,this paper puts forward some suggestions for improving measures from the angles of comprehensive budget and cost management,establishing assessment and incentive mechanism,improving procurement management and supplier management,fixed cost method,strengthening IT construction and management,etc.