Research On Challenges And Solutions Of Total Cost Management System For China Construction Bank Heilongjiang Branch

Nowadays, the competitions between different banks become more andmore fierce. Under such circumstances, enhancing profit-making level andimproving value-creating ability turned to be the fatal factors for ChinaConstruction Bank. Among all of these elements, cost management is the mostcrucial one. Total cost management is a kind of scientific model and method atpresent. How to make Total cost management system effective? How to perfectcost management model? How to make cost management method morereasonable? These problems have already become urgent tasks ChinaConstruction Bank Heilongjiang Branch must solve at once.On the basis of extensive reading of recent relative thesis and learning latesttheories of Total cost, Value chain and Activity-based costing, the authorcompared management model and management instruments between traditionaland total cost management system in China Construction Bank HeilongjiangBranch. After integrating practical work and present situation of costmanagement, the writer then analyzed some problems in current costmanagement in five aspects with the measure of fixed quantities and fixed nature.According to the above mentioned problems, the writer also further discussed allthe reasons in the aspect of concept, system and manner. In the last part of thearticle, the author proposed some strategies in accordance with cost managementand further reasons in China Construction Bank Heilongjiang Branch. That is:establishing Total cost management idea and setting up Total cost managementcommittee. Specially speaking, augmenting strategic plans, injecting the methodof Activity-based costing and doing more Input-Output analysis is necessary.Further more, perfecting performance appraisal and improving managementaccounting system is needed.