Strategic Cost Management Based On ABC

Knowledge is becoming more and more important role in pushing productivity during this knowledge-oriented economy. Cost management and practice keeping up with the times are increasingly satisfying competitive demand so as to cope with fierce domestic and international competitive environment.Cost management and cost control have experienced long and evolving procedure in the cost history , in which strategic cost management is attracting more attention.Strategic cost management(SCM) is cost management that considers organization competitive advantage and make the company adapt itself to external environment. SCM includes the analysis of value chain, strategic, position and cost drive.Through the analysis of theory of SCM, the study aims at applying SCM to product life cost based on ABC , and furthermore, the study wants to set up the model of ABC and evaluates company's performance on the side of strategy.