Study On "Target-activity" Based Cost Management Mode

Cost management is the key of business management and is closely related to enterprise's basic competing strategy. Under the condition of sharp competition , products are tend to be same between national and international enterprises, how to "expand market outside and control cost inside" have been the reality that all enterprises have to face. Based on integration of target cost management with activity-based costing management, which are scientific cost management methods in foreign countries, it theoretically sets up an integrated cost management system-"target-activity" based costing management. I hope this system will provide enterprises that are searching for new cost management methods with help.The first chapter gives a definition to cost and points out the relationship between cost and enterprise's basic competing strategy, it summarizes the importance of enterprise's cost management. Through data analysis, it lists the difference between our county's enterprises and developed country's, moreover, it analyses the two reasons, which lead to the difference-one is method, another is implementing effect. Then, it points out that enterprises must looking for new cost management method and raise "target-activity "based costing management, at the same time, it introduces the searching status quo.The two chapter expounds respectively the definitions, management methods and merit-defects of target cost management and activity-based costing management. It sums up the implementing procedure of the two cost management method and discusses the important points.The three chapter is the key chapter. It compares target cost management with activity-based costing management and illustrates the general character and differences between them. Based on the above analysis, it poses that the two cost management methods can mutually supplement to complete cost-activity based costing management. It explains the new cost management method by diagram and illustrates detailedly the contents of every step. At last, in order to guaranteeing the implementation of the new method, the theory discusses the basic work to carry out this method and the applying future in our country.The four chapter explains how to implement target-activity based costing management by a case analysis. This case is about SHENZHEN HI-TECH ELECTRONIC CO.,LTD., which make accessories for mobile telephone. Through analysis the present cost system and applying the new cost management in some field, the theory points out what to be improve and how to improve.The innovation of my theory are:1 it puts forward "target-activity" based costing management which is a new cost management method.2 it illustrates how to implement this new cost management by a case .