Research On Cost Control Of Construction Industry Based On Value Chain Theory

With the integration of the global economy and the rapid development of information technology, capital flows rapidly in worldwide and the competition among enterprises has become increasingly fierce, which requires better management style of enterprises. Facing scarce resources and survival of the fittest, cost control is the eternal topic. In traditional accounting, people tend to focus too much on the cost of production inside the enterprise and only a single driver is seen as the motivation of costs, which causes the traditional cost control cannot adapt to changes in the development of modern enterprises. Under this theoretical and practical background, cost control based on the value chain theory arises as a new management method and shows its superiority. Value chain cost control is an adaptive change to market under the guidance of the concept of strategic partnership. Value chain cost control is the inheritance and development of traditional cost control. It expands cost control inside the enterprise to the whole value chain, which not only focus on the enterprise value chain, but also emphasize external value chain. In order to create and maintain the competitive advantage, enterprise must understand the value chain——costs incurred in every aspect of production and new value is created along with the cost of resources. Therefore, the purpose of cost control is more value-added than cost reduce. Cost management is not just the range of production processes, but includes the design, procurement, production, marketing and after-sales service. The competitiveness of the value chain eventually forms the competitiveness of enterprises only when it value-added.In this paper, the use of case analysis and theoretical basis of the value chain cost control is to research the cost control system based on value chain of C Enterprise and get inspirations and conclusions, hoping to provide some help for construction enterprises’ cost control. The first park is literature review. This part analyzes the background significance of value chain cost control systematically with the help of many scholars at home and abroad who research on the value chain cost control theory over years. Then conduct a comprehensive analysis of its value chain and cost driver contents combining the industry characteristics and the specific situation of the case enterprise, which is a steppingstone to the next part. Finally, case studies, to explore the value chain theory specific application methods and approaches in the enterprise cost control, draw conclusions and inspiration.