The Open Petroleum Engineering Journal

2015, 8 : 358-362
Published online 2015 August 19. DOI: 10.2174/1874834101508010358
Publisher ID: TOPEJ-8-358

Evaluation of Cost Management Controlling System in Petroleum Enterprise

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

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.