Inter-Organizational Cost Management In Supply Chain Of

Inter-Organizational Cost management has witnessed a blurring of organization boundaries recent years. Typically in supply chain of automotive firms. This kind of cost management technique combine value chain management, strategic cost management and operational cost investigation, transaction cost management, supply chain management, as well as manage accounting together. IOCM have significant economic advantage through collaborative cost management cross the organization boundaries, it manages its relationship with its customers, suppliers, and partners.ICOM is a concept that required firms to recognize the incidence of transaction cost. In this light, the overall performance of one organization depends not only on its internal efficiencies, but also on the way it manages its relationship with others.We have heuristic models such as value-chain analysis, business process reengineering, and targeting cost tend to be favored for IOCM. in accounting booking method. We also have standard cost system. Unfortunately, Current cost management method can only fulfill the demand of internal cost management. So far there is no cost management way that can be applied to cross organization management. Open-book-account, Targeting cost, Activity based accounting can play the key roles to record the cost management effort among organizations.The rise of strategic alliance and other co-operative approach in business have led to some positive result. We have to take the supplier and customers into consideration. J company was selected as the sample to illustrate the ICOM supply chain cost management method in reality word.