Research On Strategic Cost Management Application Of Liyuan Mold Company

Traditional cost management system aims to help maximize the short-term profit of theenterprise. For achieving this aim, enterprises should control the enterprise managementactivities to cut cost. But this method cannot provide long-term competitive strength and costadvantage under the fierce competition and complex circumstances of today’s world. Strategiccost management provides a new viewpoint for the enterprise cost management and hasattracted increasing attention nowadays. How to improve and solve the problems of costmanagement and realize the combination of current theory and enterprise cost managementpractice from a strategic height still require further study.Based on the famous Shank mode, this paper explores how to improve the costmanagement of Liyuan mold company efficiently and systematically. The aims of this paperwere to:(1) highlight the advantages of strategic cost management and provide theoreticalsupport for the further study by summarizing the limitations of traditional cost managementand elaborating the content, characteristics and modes of strategic cost management;(2)analyze the status of Liyuan mold company and investigate the necessity and feasibility ofstrategic cost management for coping with existing problems;(3) to help improve the costmanagement and competitiveness of company by analyzing strategy position, value chain andcost driver.Therefore, breaks through the limitations of traditional cost management, this paperfocus on the use of strategic cost management and will be of important significance in bothenriching the current cost management theory and providing reference for other modulecompanies in cost management practice.