Strategic Cost Management Theory In The Application Of The Weifang East Steel Pipe Company

With rapid development of technology, market environment has been standardday by day, and competition in lines has become fierce gradually. For enterprise, thiskind of competition has changed into the competition of cost management at largedegrees. However, Under new managing circumstances, the prevailing costmanagement system focusing on providing information for enterprise's insidemanagement hasn't followed up the change of this management idea. Prevailing costmanagement system still rigidly adheres to traditional cost accounting methods andcost managing regulations, thus the cost management control hasn't played its duerole, whereas has become the actual adjunct of financial accounting. Strategic costmanagement focuses more on cost driving factors, it uses value chain analyzingimplement, to identify the functional location of cost management in enterprise'sstrategy; under the above-mentioned circumstances, the introduction of strategic costmanagement, becomes a new way for our country's enterprises to carry out costmanagement.This thesis first through the introduction of some aspects of "strategic costmanagement" such as the bring and development, object and character and basiccontents, got a clear cognition to strategic cost management; Next, the thesis usedSangke-model to analyze the value chain,strategic location and strategic cost drivingfactor of Weifang East Steel Tube Company, and proposed corresponding improvingmeasures; Then, on this base, it introduced five kinds of achievement appraisalmethods, and designed a set of appraising index system using balanced score cardaccording to the company's actual situation, which aimed at guiding all employees ofthe company to understand and participate in strategic cost management, so as topromote the development of company's strategic cost management; Meanwhile, itdiscussed how to freely use balanced score card according to the company's actualsituation when implying achievement appraisal, so as to achieve the purpose ofstrategic cost management ultimately; At the last, the thesis summarized the strategiccost management, and analyzed the developing prospect of strategic cost managementmethod.