Research on the Construction and Application of Activity-based O&M Standard Cost System for Transmission Companies

China's economic transition from quantitative growth to qualitative growth, improving internal management efficiency and managerial expertise is becoming the top priority for power transmission companies. Standard cost system is an important tool for companies to deliver on that goal. This paper looks into the development and application of the activity-based standard cost system for grid companies' operation and maintenance(O&M), analyzes and assesses the resource consumed and costs incurred in the O&M process using a standard cost system based on actual procedures and practices. The effectiveness analysis shows that the establishment of activity-based O&M standard cost system can improve the budget management for the company and lays a systematical groundwork for further application facilitating corporate finance management.