Research On Product Cost Management Of Office Furniture Industry Based On Life Cycle Theory

Facing the environment of the international financial turbulence,the competition in the market is more and more fierce.For most of the enterprises,making the product’s innovation and cost management means getting the competitive advantage.For majority office furniture enterprises in China,their operators are risen from workers,who lacking of scientific knowledge of cost management consciousness,so that they can’t guide the operation and development of their own enterprises with scientific theory.There are following problems in most of the enterprise when they manage their products’ cost:1.their cost management is so narrow that ignores the deal;2.intangibling cost factors;3.lacking of foresight and strategic vision;4,lacking market concept.This article obtains uses the life cycle theory as the foundation,carrying on the life cycle cost management to the office furniture product the method,through to the domestic and foreign cost management present situation the research.First of all,M office Furniture Company is selected as an example.This article analyses the cost management of the existing problems in M company.There are many problems in M company such as the awareness of cost management,cost management and cost accounting methods and other aspects.Then,according to the existing problems in M company,basing on the life cycle theory,the characteristics of each stage of product life cycle as the basis,respectively M office furniture company product development period,the period of introduction and growth of different cost management period,mature period and decline period method.Finally,this paper takes the M company’s Y product as the actual target cost management case analysis.Y products on the establishment of the goal of cost and cost target cost decomposition to the life cycle of each stage,in each life cycle cost,then the specific target cost to the implementation of the relevant departments and responsible persons,and make a evaluation and incentive measures corresponding to the actual data,the target cost management advantage.