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Investigation on the Application of Cost Management in Operational Efficiency and Performance Evaluation

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DOI: 10.23977/msom.2023.040502 | Downloads: 94 | Views: 682

Author(s)

Jun Zhang 1, Xiaofang Huang 1

Affiliation(s)

1 Philippine Christian University, Manila, Philippine

Corresponding Author

Jun Zhang

ABSTRACT

With the intensification of global business competition, enterprises are increasingly focusing on improving operational efficiency to improve performance. Operational efficiency refers to the ratio of output to input in the utilization of resources by a company. Performance evaluation measures the performance of a company in achieving goals and providing value. Nowadays, improving operational efficiency and accurately evaluating performance are crucial for business success. Cost management is one of the important methods to improve operational efficiency and achieve excellent performance. Through cost management, enterprises can better understand resource utilization, identify waste and redundancy, and make targeted improvements. This article used the EVA (Economic Value Added) method to study the impact of cost management on operational efficiency and performance evaluation. Through data analysis, it was found that the economic value after cost management was 1.07775 million yuan. This numerical value was positive, demonstrating the value and effectiveness of the constructed model and method in operational efficiency and performance evaluation. Cost management could also optimize resource allocation, reduce costs, and improve operational efficiency and performance evaluation.

KEYWORDS

Cost Management, Operational Efficiency, Performance Evaluation, Economic Value Added Method

CITE THIS PAPER

Jun Zhang, Xiaofang Huang, Investigation on the Application of Cost Management in Operational Efficiency and Performance Evaluation. Manufacturing and Service Operations Management (2023) Vol. 4: 12-20. DOI: http://dx.doi.org/10.23977/msom.2023.040502.

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