Search

Economic Analysis of Enterprise Cost Control and Economic Benefit Improvement

Author(s)

Zixin Yao

Affiliation(s)

Changsha NO.1 Railway Middle School, Changsha, Hunan, China

Abstract

This paper deeply discusses the importance of enterprise cost control and its role in promoting economic benefit. This paper first defines the basic concept of cost control, and summarizes the classification of traditional and modern cost control methods and their applications in enterprises. Then, from the perspective of economics, this paper analyzes the relationship between marginal cost and marginal income, the difference between fixed cost and variable cost and its influence on enterprise decision making, and reveals the core role of economic principle in cost control. Enterprise cost control is not only a means to reduce production costs, but also the key to enhance market competitiveness and achieve sustainable development. Through refined management and innovative cost control strategies, enterprises can optimize resource allocation, reduce waste, improve production efficiency and product quality, and thus enhance profitability. This paper elaborates the specific measures that enterprises should take in the process of cost control, including improving the level of capital operation, fine management cost, optimizing procurement strategy, controlling personnel cost and innovating cost control methods, and analyzes the effectiveness and feasibility of these measures combined with actual cases. At the same time, the close relationship between enterprise cost control and economic benefit is summarized, and the important role of economic analysis in guiding the formulation of enterprise cost control strategy is emphasized. At the same time, the paper also looks forward to the future development trend in the field of cost control, pointing out that with the change of market environment and the expansion of enterprise scale, cost control will face new challenges and opportunities, and enterprises need to innovate and adapt constantly to achieve long-term and stable development. Through comprehensive economic analysis and rich practical cases, this paper provides useful reference for enterprises how to effectively control costs and improve economic benefits in the complex and changeable market environment.

Keywords

Cost Control; Economic Analysis; Resource Optimization; Market Competitiveness

References

[1] Wang Lihong. Analysis of Cost control in Enterprise Financial management [J]. China Chief Accountant, 2023 (2) : 73-75. [2] Xie Hui. Analysis of existing problems and countermeasures of enterprise cost management [J]. Finance and Economics,2021, (17): 44-45. [3] Han Lin, Li Xiuli. Research on L company's cost control based on value chain [J]. Marketing Community,2021, (18): 177-178. [4] Zhuang Yongwei. Analysis of enterprise cost management and control [J]. Economic Management Abstracts, 2021, (23):114-115. [5] SONG Yan. Method and Strategy analysis of Strengthening Enterprise cost Control [J]. Shanghai Commerce, 2021,(11): 114-115. [6] Chen Jingjing. Research on Optimization of Corporate Supply Chain Cost Control from the perspective of Informatization [J]. China Management Information Technology, 2021, 24(17): 93-94. [7] Li Xiaoxia. Research on Enterprise Cost Management Strategies based on the perspective of value chain Theory [J]. Enterprise Reform and Management, 2021, (17): 132-133. [8] Liu Ying. Exploration of enterprise cost control and management based on value chain [J]. China Small and Medium-sized Enterprises,2022, (5): 83-84. [9] Ma Wei. Analysis on strategic cost Management of BYD for new energy Vehicles [J]. Times Automobile,2021, (10): 72-73. [10] Henry Dekker. An analysis of the virtual value chain in electronic commerce[J]. Logistics Information Management,2016(1-2):78-85. [11] Elizabeth A. Cudney, Ruwen Qin. Value chain analysis in interfirm relationships: a fieldstudy [J]. Management Accounting Research,2016(1):1-23. [12] Nuchira Khongja, Thongchai Botmart, Piyapong Niamsup, Wajaree Weera. Guaranteed cost control for exponential stability of a nonlinear system with mixed time-varying delays instates and controls [J]. Advances in Difference Equations,2018(1):75-78.