Research On Cost Management Of FTYQ Auto Parts Co.,Ltd. Based On Target Cost Method

China’s auto parts industry has the characteristics of high regional concentration,and basically in the vicinity of the vehicle production base,has formed six major auto parts industry clusters,distributed in the northeast,Beijing-Tianjin-Hebei,central,southwest,Pearl River Delta and Yangtze River Delta.In the field of low-value-added parts,China’s auto parts enterprises are more concentrated and decentralized,so the competition in the low-end market is more fierce,and most of the key auto parts suppliers in China are multinational auto parts suppliers.In order to reduce the cost,multinational enterprises migrate production links.In the face of such a business environment,as an automobile parts manufacturing enterprise,it is necessary to realize the cost management through appropriate methods,expand the business scale of the enterprise,and finally realize the goal of profit growth of the enterprise.The target cost method is a cost management method originated from the Japanese manufacturing industry.It determines the cost of the product based on the price obtained from market research and ensures the realization of the expected profit.This article takes FTYQ Auto Parts Co.,Ltd.as the research object.On the basis of determining the research background and significance of the article,the content and ideas of the research are gradually clarified through reading domestic and foreign documents.The research methods are literature review and case study methods..Then,firstly,I will give a basic introduction to the related theoretical knowledge of cost management and target costing;secondly,I will introduce the general situation of FTYQ Auto Parts Co.,Ltd.and the current status of cost management before the company uses target costing,mainly from the various aspects of the enterprise value chain.The link is described,and then the main problems existing in the current cost management of the enterprise are analyzed;again,the target cost method is introduced into FTYQ Auto Parts Co.,Ltd.,and the optimization measures of the enterprise cost management are studied in combination with case studies,including overall ideas,design principles,and actual The specific process of design,procurement,production,sales and final cost evaluation in production and operation;finally,the guarantee measures for applying the target cost method for cost management and the conclusions and prospects of this article are introduced,hoping to provide cost management for other similar enterprises for reference.