A Study On The Product Life Cycle Cost Control Based On Value Chain Theory

In the modern economic society of high informatization, technicalization and globalization, the customers' demands is turned into individualized and diversified, and this makes enterprise's global competition grow in intensity. The traditional cost control obviously can't already meet and offer the cost information of decision requirement for strategic management, and already hampered enterprise's progress and innovation. This change has greatly impact the cost controlling methods of modern enterprises, it requires enterprises to confirm their cost localization and control goals again, and control the product cost from value is created and value is offered etc. different angles. So, it makes the cost control in the lower range. Therefore, enterprises want to win market competition of our times that must break through the mode of the traditional cost control, and explore the advanced mode of cost control which meets the new environment.This paper sets out from value is created, uses the modern value chain theory, and it is a goal to obtain the competition advantage and meet customer's demand, and discuss the new thinking that the cost controls of the modern enterprises. Because of this, on the basis of digesting and assimilating the achievement of advanced cost theory in foreign companies, and this paper has explained the basic principle that the cost controls in product life cycle based on modern value chain theory.Firstly, this paper chooses the theory of the product life cycle cost as the foundation of the cost control theories and methods after analyzing foreign and domestic advanced the theory of the cost control theories. And uses the value chain theory to analyze its different intension from different visual angles, has proposed the product life cycle based on the angle of value chain.Secondly, this paper revises the basic of enterprise's cost based on the value chain theory, has proposed the cost view based on value chain. The cost should offer from value creating and value offering. On one hand, enterprises can generally be resolved into the research and development of products, designed, manufacture, marketing and a series of economic activities which different each other but have interrelated while creating the course of value, its total forms the value chain of enterprises. It is the foundation that the cost controls in product life cycle at the same time. On the other hand, enterprises control the consuming of resources in order to offer value to the customers as many as possible.Finally, on the foundation of analyzing the defect of traditional cost control, and has explained the view of the cost control based on value chain theory. On this basis, through the analysis of product life cycle cost and cost reason of the value chain, and puts forward the basic theoretical frame based on the value chain theory, and researches the method of the value chain cost controls.