Research On Enterprise's Cost Control Under Value Chain Management Based On Game Theory

The enterprise's cost control experienced a great change from the enterprise interior microscopic units to value system in middle-scopic units accompanied with the competition mode transformed from the competition among single enterprises to competition among value chain enterprises, as well as its attention scope, the goal and key points carried on developing. Accordingly, enterprises begin to set up good relationship with outside enterprises to seek a effective way to lower their own operations cost, and then the cooperation gaming relation arises among enterprises at the historic moment. However, to a great extent, this kind of behavior of game has caused the unexpected cost in enterprise's cooperation, while it brings interests to enterprises.This paper analyzes influence and risks of the value chain management on the enterprise's cost control based on reviewing the appearance of cost control and the traditional cost control method. Further, it also defines value chain management both from the narrow sense concept and broadly-defined concept. The theory of gaming is implied. Suggestions are provided by the author on finding risk elements in enterprise's cooperative course and improvement of the Activity-Based Costing (ABC) by building the control models on the basis of the enterprise's cost control. Some selected cases are also used to test the feasibility of the models.