Research On Improvement Of Target Cost Management For NS Group Auto-Electronic Products

According to the volatile international economic situation and global environment currently,China's economy is also in the downstream stage,our domestic enterprises are facing enormous challenges,and some industries have even survived in the low-profit period.Therefore,in order to cope with the increasingly severe economic environment of the test and pressure,corporation management in the cost of management is particularly important.The traditional cost management methods are not suitable for the enterprise cost management under the new environment because of their various drawbacks.Accordingly,enterprises should start to change the existing cost management concepts,expand cost management content,and look for a suitable cost management model for business management status.Strengthen the cost management plays a vital role to improve the economic efficiency of enterprises,especially in the highly competitive Chinese market currently,in the final analysis,the point of competition among enterprises is the cost management.However,plenty of enterprises still focus on the manufacture cost management.The cost of R&D and the cost of sales and after-sale are not effectively managed,and it is difficult to provide effective basis for enterprise's production decision-making.Based on the theory of target cost management and product life cycle,this paper breaks through the traditional cost control,which is limited to manufacturing stage,extends the scope of cost management to the whole life cycle of product.The paper established the concept of large cost of product life cycle by carrying out research on the target cost management in the stage of R&D,manufacturing,marketing and after-sale.The target cost management is a kind of management concept to administrate the cost of target.In order to achieve business profit target,the enterprise determine and decompose to plan and control the cost occurrence,mining the potential of product cost reduction through the product target cost.Nowadays,more and more enterprises have selected the idea of target cost management in the course of business in varying degrees,and have achieved significant cost control effect.In the meanwhile,some common problems are still existed in the practical application.This paper select NS Group car electronic product as example,pointed out the problem and weakness by introducing the company's product cost management of the status quo.From the perspective of product life-cycle cost control,this paper makes a theoretical analysis and practical application of target cost management of R&D design stage,manufacturing stage,marketing stage and after-sale stage of NS Group's automotive electronic products based on target cost management method,providing the cost control measures and suggestions for improvement,wishing it would be helpful to NS Group's target cost management methods.