Study On Strategic Cost Management

The cost is key factor for enterprise to compete in market, with the variety of the surrounding where enterprise competing, the traditional cost management method has already can't adapt the development of the enterprise. This text puts forward the new cost management method - Strategic Cost Management (SCM) through analyzing the weakness of the traditional cost management method. SCM is the cost management method for enterprise to acquire the cost advantage under the new surrounding.This article analyzed the cost management method in present condition and the reason of the weakness in state-owned business enterprise first, the next introduced the strategic cost management of related theories, then elaborate the application of SCM, finally, gave an example to illustrate the application for SCM in state-owned business enterprise and the result of SCM application.