Study On Application Of The Mode Of Strategic Cost Management In China

With the conversion of the economic system, the economic environment has changedenormously, the global competition is becoming more and more fierce. While improving thetraditional method of cost management, enterprises keep on looking for new methods to adapt tothe rapid changes of the economic environment they face inside and outside. Under this situation,cost is not only a factor that influences an enterprise's profit level, but one influences anenterprise's competitiveness, survival and development potentiality. It is a problem that cannotbe avoided when an enterprise is making and executing its development strategies. Meanwhile,what modern enterprises face is not the problem whether cost can be reduced, but how to reducecost through effective way, how to understand cost in terms of strategy, explore the effective waythat strengthens cost controlling, perfect the theory of cost controlling and the system of methods.Especially in the period of socialist market economic construction, it is quite necessary to solverapidly the problems on cost controlling methods when modern enterprises want to developthemselves. The problem of cost has been to obstruct the development of enterprises in our country,especially of the state-owned enterprises all the time. If we want to change the current situationof cost management in our country, we should adapt to the changes of the environment ofenterprises' administration and meet the need of strategic management, then change the defectsof the traditional cost management system, and seek improvement and development. Thepurpose of this text is to research from the new visual angle of strategic cost management,combine with the current situation and difficulty of cost management in our country, seek thenew way to create competition advantage of enterprises' cost in our country, in the hope ofgrowing with each passing hour, and offering stratagems for the reform of the state-ownedenterprises. The paper chooses and uses the following several kinds analytical methods, mainly:(1) demonstrational analysis and standard analysis;(2) relating theories used for reference andfurther research; (3) comparative analytical method (horizontal and vertical) This paper tries hard to base on the modes of strategic cost management of some maindeveloped countries of our times (such as Activity-Based Management of U.S.A. and TargetCosting of Japan ), attempts to carry on sort research systemically and intensively on them andstudy with the comparison and integration of Chinese cost management mode from many aspects,英 文 摘 要then theoretically carries on deep discussion to application of the combination of the two modesin China. And verifies that both the two modes of cost management have their wide developmentprospects and can bring good economic benefit to Chinese enterprises. The article has offered thefeasible method, namely the enterprises that satisfy the requirements of the strategic costmanagement can take the lead in adopting the strategic cost management, enterprises that do notsatisfy the requirements can implement the cost management on the foundation of the strategiccost management. From practice, the article summarizes the train of thought to study the mode ofstrategic cost management, that is, to proceed from actual conditions of this enterprise combinewith modern strategic idea, absorb advanced idea and methods of the representative modes ofcost management, and develop them creatively, thus try to find out the mode that suits ourselves.At last, the paper based on concrete realistic environment, proposes carrying on the reform fromthe two respects: idea of the cost and methods of management, and offers advices in order toexplore the strategic cost management mode with Chinese characteristics. Then points outemphatically, to combine ABM with TC is a way of innovation.