The Modern Enterprise Strategic Cost Management Studies

From the 20th century seventies,the third industry revolutionary with the main characters of computerization and automation swept across all over the world . Information technology improve every day and month,electronic technology was used in the industry and formed a so-called new manufacturing environment . At the same time,customer's demand becomes more personal and various,product life cycle becomes shorter and shorter,new product appears time and again,so market competition becomes more fierce gradually .The great changes of economic environment push the management science forward . To adjust to this tendency,strategic management emerged as the times require . The core of strategic management is to look for the lasting competition advantages,which need to obtain competitive cost materials and information . But in this new management environment,traditional cost management can not adapt to the demand of strategic management because of its own flaws . All this compel the goal of cost management to adjust correspondingly,and demand the practical methods enlarge at the same time,then formed SCM .This paper includes five parts:The first part :introduction to strategic management. This part first discusses the backgrounds of the appearance of strategic cost management (SCM) through introducing the developing of cost management history,then introduces the definition and the characteristics of SCM,and also summarizes the basic principles and procedures of SCM .The second part:method system of SCM and the application of its three analysis tools .This part systematically expounds the methods and measures system of SCM,which include strategic cost analysis system ,cost management's strategic methods & measures system and cost management security measures system ,and introduces three analysis tools exhaustively .The third part :activity-based costing and the usage in strategic costmanagement .This part discusses the usage of ABC and ABM,and the ideas of SCM embodied in which .The forth part :product-life-cycle cost method and target costing. This part mainly introduces product-life-cycle cost method,and then discusses the ideas of SCM embodied in target costing .The fifth part :the explores of SCM in our country's enterprises .This part analyze the status of our country's enterprises ,and discusses how to build the SCM method system to adjust to our country's enterprises practical cases.