Research Of Modern Cost Management Mode

Since the middle and late 20th century characterized by the rapid development of new and high technologies, there have been prominent changes in the running environment of enterprises, with more intensive global competition, faster internationalization of enterprises and increasing propensity toward customer-oriented market. This phenomenon incurs an unprecedented challenge to the traditional mode of cost management with possibilities of distorted cost information ineffective for decision-making. Under the circumstances, the reform in the cost management mode is imperative in order to extend its scope in terms of both space and time, from dealing with consequence to premise and process, from production phase to design and afte-sale phase, from interior to exterior of enterprises, so as to meet the needs of different management levels of enterprises. A mass of new methods and technologies of cost management have come forth in the west. They have taken in a lot of achievements from other relevant sciences, but cannot form a systematic cost management framework due to their separate methods. On the basis of the review and analysis of the traditional cost management, and the introduction and appraisal of the contemporary advanced cost management methods, the writer establishes the cost management mode for modern enterprises based on the thinking of value management, namely, the overall cost management mode under the cost chain, which can well contain and integrate most updated contemporary cost management theories and methods, and meet the multi-objective needs of enterprises in such aspects as cost accounting, cost control and cost analysis. The writer also makes a summary on the theoretical foundation of modern cost management mode from the angles of theory assumption, basic theories, mathematics model, information model, etc. At last, the writer tries to give readers a comprehensive illustration of the practice forms of modern cost management mode by the introduction of a specific case in point.