The Research On The Cost Control Based On The Value Chain

As the competition grows in intensity in the world, the most concern of modern businesses is how to satisfy the various needs of their customers in a very short time, and reduce cost in time with improving personalized service quality. To obtaining the competition advantage, the cost control should pay attention to the production design and product process, the relation with the upstream vendor,and the accounting and management of the downstream customer equity. The theory of value chain provides a method to study cost control of the enterprises.This paper analyzes the theoretical foundation of the cost control and value chain, the selection between Vendors based on the developing capacity of products, horizontal value chain, optimizing of the intra value chain, cooperation of the horizontal value chain, and the accounting of the driving factors in the customer equity.The paper proposes the cost control frame based on the value chain. Since the customer equity is the resources of the enterprises'profits, the driving factors of customer equity should be analyzed and accounted under the different enterprises'competitive strategies. The focus of the cost control in middle stream of value chain is optimizing of the intra value chain, and the cooperating of the horizontal value chain. The determining factor of the selection is the developing capacity of production.