Modern Cost Management System

The booming of the New Economy causes dramatic changes in macro-environment and microenvironment on which a corporation depend, which lead to the transformation of the organizational pattern of a corporation and promote the formation of new enterprise views. For a corporation to survive and develop in the new completive surrounding, keeping low cost priority is an essential way. That is to say, it is time to innovate the cost management system. In this paper, we firstly analysis some impacts brought by the New Economy on cost structure, cost control and cost management concept. Secondly, we discuss a set of key factors in cost management system's innovation, such as alteration of cost concept, re-identification of key elements of cost management system and improvements of cost management pattern. Then, a new modem cost management system based on the strategic active based cost management pattern is built, in which some advanced technologies, such as Distributed Artificial Intelligence, Expert System, Database Warehouse and so on, are utilized. Finally, taking the designing of cost management system of Shuikoushan nonferrous metals. Ltd. as an example, we present some key points' designing during the new system's implement in details. Therefore, an effective way of cost management for realizing continues cost decline is given in this paper.