Target Cost Management Theory And Its Application

Along with socialist market economy system's increasingly mature, market competitionis intense, many enterprises obviously display its unsuitably to the market economy,loses money the scope in a big way, the loss volume is high, and has day after day theserious tendency. Investigates its reason to be a lot, macroscopic and the microscopiceconomic agent all is playing the role, for example: Cost consciousness desalinates,the economic system backwardness, the cost accounting way does not work as and soon reason. At present the state-owned enterprise faced the stern situation, very importanton the one hand is the enterprise own cost management is bad, the cost work has notstill cornplied with the market econorny's requirement.This article is talking about the content of the cost policy, the cost managementdevelopment, the target cost management theory formation on the base of the domesticand foreign practices and the development of the target cost management theory. Aswell as the target cost management' concept, characteristic and function.This research proposed the target cost management's basic pattern. Preparatory workshould do which including the implementation target cost tube, goal establishment, goalexecution and consummation, goal drive method and function, as well as target costdynamic management and constimmation to cost capital no matter what inspection andcash. And has conducted the Nanjing subway operation subsidiary company target costmanagement applied research. In to the transportation target cost management practiceexploration foundation in view of the Nanjing subway operation subsidiary company'sactual situation, proposing which acts as circumstances permit canies out the target costmanagement in the Nanjing subway operation subsidiary company the concrete planand the system design. At the same time, proposed the consummation and the deepeningtarget cost management pattern and the further research direction.