Research On Strategic Cost Management In Total Quality Management Of R Company

Economic Globalization is a trend of modern economic development whichgives corporation much competitive pressure. It follows with the increasing highquality request for production. Cost management is an important part for acorporation’s long-term and stable development in the fierce market competition.Strategic cost management is a new managing theory under the situation of thisglobal economic development.Corporation R is a manufactory specialized in raw material supplier inhousehold appliance industry. To analyze this kind of economic type has practicalsignificant. The main theory of this paper is to get the conclusion that strategic costmanagement is necessary, the paper will use research method, case studies ofcorporation R under the entire quality management and strategic cost management.The whole way of thought is to analyze the active relation between all units, to takeaspects such as prevention and appraisal cost, internal failure costs and externalfailure costs, all of thought is based on the overall quality management. The paperwill analyze corporation R’s motivation of cost construction and execution, to settlefocus objectives of strategic cost management which mean the combination of costadvance difference. The recommendation is to carry out strategic cost management bystrengthening order control, counting hidden costs. Full quality management requiresand emphasizes full participation, business evaluation index of profits and theestablishment of service quality system methods.