The Application Of Strategic Cost Management In State-owned Enterprises In Our Country

Great changes have taken place in the understanding of enterprises' cost management and control system, which are caused by the new characteristics of modern enterprises, such as product diversified, organize flexibilized, service theory customer-based, information system networklized and market globalized. The weaknesses of traditional cost management become more and more obvious. From the point of view of enterprise strategic cost management , this article is going to illustrate the application of strategic cost management method in state-owned enterprises in our country, by using reference of cost management models in western developed countries, and using practical cases in work.Foreword: The background and significance of the subject are raised. Chapter 1: The present situation and causes of cost management in state-owned enterprises are analysised.Chapter 2: Form the point of view of strategic management, the new thinking of state-owned enterprises cost management is emerged. Because the traditional cost management method applying in modern economy operation environment has inherent weakness, the strategic cost management comes into being. The significance and the main method has also been introduced. Chapter 3: Introduce the two cost management methods which are been widespread in western developed countries at present. One is activity-based Costing, the other is Target Costing. The broad outline, the method system of these two methods are briefly described. The possibility and necessity applying these methods in state-owned enterprises in our country is discussed in this chapter as well.Chapter 4: Case analysis. Given an example of the group company where the author works, the author tries to illustrate how to apply strategic cost management method in state-owned enterprises to survive and develops under competitive market environment.