Research On Strategic Cost Management

Strategy is the core idea to guide the business,and Cost is the primary factor to measure the competition.Traditional cost methods has failed to compromise the strategy in cost management model,cost management also failed to provide effective strategic direction for the business,resulting in distortion of the cost information and failure of the strategic decision-making.In order to obtain cost and competitive advantage,Strategic Cost Management came into being.In the current economic environment,customers demand product quality and service continually increasing,so that the enterprises have request the beneficial result from the cost.In addition,the financial crisis in 2008 allows enterprises to understand the risk better,so it has become a nature of the theory extension of the Strategic Cost Management,which is the Strategic Cost Management compromising the concepts of the risk,quality,and service management.In this paper,on the base of the theory of Strategic Cost Management,it focuses on comminuting Activity Based Management and Target Costing model.Then it analyses the cost management models and their advantages and disadvantages of our Chinese enterprises deeply.In order to improve the cost management model of the Chinese enterprises,it draws the principles from the innovational Strategic Cost Management model in this paper;proposes the new contents of the market-oriented strategy to compitetion,innovation,risk and the new contents of the customer-oriented strategy to quality,service,brand;builds into the globalization strategic system including the enterprise's developing Strategic layer as the market development strategy,industrial development strategy,brand development strategy,service development strategy and the business functional strategic layer as the cultural innovation,technological innovation,cost management,risk prevention,quality management,capital operation strategy;analyses and relates the original cost setting,the cost of the value chain refining,the cost of risk management,quality cost management,service cost management and constructs the theoretical framework or formula for their different characteristics.With a view to enable Chinese enterprises obtaining cost advantages, improving quality and services,enhancing the capacity to confront the risk,and maintaining the long-term competitive advantage.