The Research Of Communication Industry X Product Cost Management

After near20years of high-speed development, Communicationsindustry growth has slowdown, in the meantime market competitionbecomes fierce, products profit drop year on year. Communicationsindustry of enterprises want to continually survive and growth, exceptessential of research and development innovation investment, alsoneeds fine management, effectively control products cost to improveproducts margin in such stress market environment. In this article byABC, combination of target cost method etc., taking a new product Xfor example, research a communication product cost effective way.Through practicing the management accounting methods, improvefine management capability and ultimately decrease the cost andimprove the benefit of enterprises.This article first discusses several sophisticated methods of costmanagement, value chain, target costing and activity-based costing,then describes the current problems facing in the domesticcommunications manufacture industry. Due to the particularities ofthis industry, standardization of products trend which allow for lessdifferentiation in different competitors’ products and enhanced buyer’s market. In summary external business environment ofcommunication products is not optimistic. But current communicationmanufacture enterprise cost management method are not reasonable,such as the traditional total cost method has been unable to fully adaptto the current business management requirements and in future. Thisarticle attempts to implement a new cost management model for newX products, to guide the development of new products, operation andits pricing decisions. In the case of X product, we first analyze theproduct target cost and use TEAR DOWN methods, analysis of eachproduct unit costs through supply chain controlling critical hardwareunit cost, software development or outsourcing analysis, reasonableshare of period expenses, and so on, expect to achieve a competitivecost, thus can be applied to other products cost managementthroughout the enterprise.The product cost management provide management with ascientific basis for decision-making, and method of refinedmanagement and continuous improvement across the enterprise.