Internal Cost Control Evaluation for Manufacturing Enterprises Based on Exergy Economic Analysis –Evidence from C Company

DOI

10.2991/snce-17.2017.14How to use a DOI?

Keywords

Internal control evaluation; Exergy economic analysis; Second law of thermodynamics; Manufacturing enterprises

Abstract

This article describes a new perspective of evaluating internal cost control efficiency for manufacturing enterprises through the efficiency of material, energy, labor and capital to find an efficient way to evaluate the efficiency of the implementation of internal cost control. The conventional way of evaluating the effect of internal cost control implementation is utilizing the enterprise's financial indicators, which are deeply influenced by external environment and cannot fully reflect the operational efficiency improvement. This research introduces exergy economic analysis method from thermodynamics based on a case study of a cable manufacturing Company (C Company), the paper introduces the exergy economic analysis which evaluates internal cost control efficiency in energy, labor and capital utilization from the perspective of energy. In this study, energy, capital and labor are unified into exergy to compare the change and trend after the implementation of internal cost control based on the consumption of those factors of production among 2009-2013. Findings have proved that (1) the exergy economic analysis method could eliminate the negative influence of the financial indicators from external environment; (2) this technique is proved as an efficient way to evaluate the efficiency of the implementation of internal cost control. This method is given us to the possibility of using this new technique to complement the efficiency evaluation of cost control for manufacturing enterprises internal. Moreover, it is a new approach to evaluate the process of the internal cost control implementation.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Li Xiaoshuai
AU  - Chen Jiangping
PY  - 2017/07
DA  - 2017/07
TI  - Internal Cost Control Evaluation for Manufacturing Enterprises Based on Exergy Economic Analysis –Evidence from C Company
BT  - Proceedings of the 2017 7th International Conference on Social Network, Communication and Education (SNCE 2017)
PB  - Atlantis Press
SP  - 65
EP  - 69
SN  - 2352-538X
UR  - https://doi.org/10.2991/snce-17.2017.14
DO  - 10.2991/snce-17.2017.14
ID  - Xiaoshuai2017/07
ER  -