Research On The Strategic Cost Management Of Urban Rail Transit

Ever since the policy of reform and opening to the outside world, our economy has been developing fast and achieved marvelously achievement. With the growing of transport, to develop the mass-contain Urban Rail Transit is best choice. The Urban Rail Transit has many advantages such as big transit, fast speed and punctual, thus the mass-contain Urban Rail Transit is inevitable choice. However, it has many disadvantages such as plenty of investment, high cost and longer Pay-back period. It restrains the well-balanced development of Urban Rail Transit.Strategic cost management can be defined as the use of cost information to do the following: help formulate and communicate strategic; carry out tactics that implement those strategies; and then develop and implement controls that monitor success at achieving strategic objectives. One of the fundamental strategies enterprises use increase competitiveness is to choose an advantageous cost driver as cutting-edge point. Cost driver analysis, which accompanies strategic cost management all the way, is the premise of the latter. Nowadays, The management of Urban Rail Transit is inclined to digital and intelligentize. Thus, it is very important to identify and control the cost driver, so the strategic cost management is a significant way to reduce the cost.Aimed at the characteristic of Urban Rail Transit, this paper open out the strategical factor which determines cost of Urban Rail Transit and resolve distinctly the cost structure of Urban Rail Transit about value activity from three analysis tool strategic cost management which includes strategic cost driver analysis, value chain analysis and formulating strategies analysis to supply guarantee for reduce the cost of Urban Rail Transit.