The Study Of Enterprise Strategic Cost Management And Application

With the reform of Chinese economic system and the rapid development of information technology, enterprises in China are facing tremendous changes and more fierce competition. Strategic management comes up for the challenge of manage science pushed by the great changing of economic environment. As the key factor to affect the competitivity and the development of enterprises, the cost control is an urgent problem to solve. However, the defects of the traditional management make it very difficult for the enterprises to adapt themselves to the implementation of strategic management, so the cost control is fundamentally weakened for the enterprise managers are impossible to find effective ways in this plight. One of the most efficient ways to this situation for enterprises is to learn the cost management as a strategy and adopt the strategic cost management, to improve the cost management level and the competitivity and seek the sustainable competitive advantages. The application of strategic cost management offers the opportunity for enterprises to profoundly convert backward cost management and it has a significant meaning in practice.This thesis is composed of six chapters. In chapter one, the research background, the meaning, the main contents and methods are given. In chapter two, several concepts and the development of SCM are introduced, the content of SCM is discussed and the different modes are compared. In chapter three, three analysis tools are detailed in depth to solve SCM problems. In chapter four, the author gives a model for activity-based costing and a model of target costing, explains the background of both models and basic research methods, and next comments on the advantages and the disadvantages of the given models. Meanwhile, the possibility of the combination of the two models is attempted. Furthermore, the author discusses the factors which affect the models, and establishes the model for SCM and offers the concrete steps to realize the models. In chapter five, XDGS enterprise as an example, is discussed and a SCM system is created by analyzing its cost management. Finally in chapter six, the author concludes the both research results and the defects, and prospects the future research at the end.