Study Of Cost Management System Based On Modern Chain-of-Value

The earth-shaking change in the economic environment has had a huge impact on enterprise traditional cost management method. As a result of own flaw, the tradition cost management method could not already satisfy the business management need in the new environment , under which the customer predominates. During all the modern enterprises,those who can absorb the modernized cost management theory and method more quickly while putting it into practice , in the meantime,creat and maintain the advantages in cost competition,will finally seize the initiative and win the market. In order to adapt to the intense market competition and obtain the cost advantage ,enterprises have to change the traditional ideas about cost management and expand the content of it. Besides,they should improve the method of cost management,shift their angle of view to the union of cost management and enterprise strategy . Arising at the historic moment, the contemporary value chain system of cost management has great significance for the management and operation of enterprises as well as the promotion of cost advantages and the achievement of the enterprise strategy goal.This article has analysed the theory of value chain at home and abroad and the present situation of research on cost management theory. It has constructed a cost management system of modern value chain in terms of some related management and economic theories and the actual situation of the private costs management in our country. Baoshan Iron and Steel Co., Ltd. has been taken as an example to analyse the actual use of the management system of modern value chain in the company. In accordance with the implementation of the new system,the article points out the existing problems ,defines the conditions of the implementation of the modern value chain cost management system and makes some recommendations .The article takes the theory of value chain as a research perspective and is based on existing research results at home and abroad for analysis. It advances the modern concept of the value chain cost management ,constructs a modern value chain cost management system and lays a foundation of further research of the value chain cost management.