Cost Control Methods Studies Based On The Product Life Cycle

In the current the enterprise faces a huge challenge under the background of volatile domestic and international financial situation.Meanwhile,the production management methods of modern enterprise emerged in an endless stream,cost control plays a more and more important role for the enterprises,and the traditional cost control methods have many drawbacks.Therefore,a series of new cost control methods are beginning.This paper puts forward systematically a new cost control system based on the product life cycle which are different from traditional cost control methods.The cost control methods in product's design,production,marketing and consumption stage were studied in the new cost control system.The paper study cost control methods in the product's design,production, marketing and consumer phases through the application of general system theory which are based on product life cycle cost control theory.The study comes to the conclusion that emphases in the product's design stage should design product's function and corresponding cost through discussing application of target costing and value engineering in product's design phase.It is critical that the enterprise should identify rationality of the function and necessity of cost rather than to control design fees.The study shows that the enterprise should adopt ABC costing in the product's production phase that break single cost calculation object in the traditional cost control methods and overhead pool become more and more accurate in order to achieve a better control cost.This paper systematically describes marketing,customer and waste cost control in product's marketing and consumption stage.The two phases is in the final stages of the product life cycle,but its cost control is very important in relation to enterprise's economic benefit and social benefit. Finally,the paper make theoretical analysis and practical summary respectively for LN company's cost control from the angle of product life cycle.At the same time,the paper confirms advantages and characteristics of LN company's cost control while finding problems and inadequacies of LN company's cost control.The paper also puts forward countermeasure and suggestion to the question existing to product's life cycle cost control in order to play a certain role for the development of LN company.