RESEARCH ARTICLE


Evaluation of Cost Management Controlling System in Petroleum Enterprise



Dan Guo*, Changqing Zhang
College of Accountant, Heilongjiang Bayi Agricultural University, Daqing, Heilongjiang, 163319, P.R. China.


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© 2015 Guo et al.;

open-access license: This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International Public License (CC-BY 4.0), a copy of which is available at: https://creativecommons.org/licenses/by/4.0/legalcode. This license permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

Correspondence: * Address correspondence to this author at the College of Accountant, Heilongjiang Bayi Agricultural University, Daqing, Heilongjiang, 163319, P.R. China; Tel: 13945901023; E-mail: guodan2007@163.com


Abstract

In this paper, a model of cost management controlling system was established for implementation and supervision of strategic management in petroleum enterprise. Using this model, various controlling methods are divided into five grades under different strategies. Each grade is assigned a value by the expert scoring method, and the scores of cost management controlling system could be calculated. If the score is greater than zero, the cost management controlling system will have a positive effect on strategy; if the score is less than zero, it will have a negative effect on strategy. With the method proposed, the cost management evaluation of the fourth oil recovery company of Daqing Oilfield was carried out and the results were reasonable.

Keywords: Cost, Cost avoidance, Cost control, Cost management, Evaluation.