The Method And Its Application For Cost Management Based On Value Chain Theory

On the point of practical research, we offered a literature review on the methods for cost management based on Value Chain Theory. We first traced the prior theories of cost management and Value Chain and summarized their advantages and disadvantages respectively. And then we developed a framework model of cost management based on Value Chain theory by combining with the theories of financial accounting and management accounting. It includes extended concept, general procedures and specific techniques. Finally, taking ZR company as an example, we discussed how to apply it to practice.