Cost Management Research Of Aaah Company

How to effectively manage and control costs are the most important issues enhancing the competitive advantage for every enterprise. Cost management and control has risen to the strategic management lever today, regardless in theory and in practice area. How to effectively control costs and improve competitiveness is not only an important business management tool, but also a prerequisite for business survival and development.This paper summarizes the theory and methods of cost management. The cost management study is based on domestic and international research and cost management practice. The standard cost brings the cost management to be a complete management system. Activity based cost not only increase the accurate of indirect cost allocation, but also provide the practical method for cost control and optimize. Strategic cost management emphasized the cost management as the strategic role of corporate operation. It not only greatly expands the scope of cost management, but also leads the cost management focus on decision making instead of measurement and control.The Cost Management study is based on the case of AAAH company. Analyzing the advantages and disadvantages of it's cost management. Based on the analyzing, set the improvement goal as improve the quality of cost information, emphasize the cost control and decision, at same time propose the cost improvement plan and method.After the analysis and research of AAAH, develop specific measures to improve cost management. Implement the standard cost and activity based cost to provide clear and accurate cost information. The analysis of activity and activity chain provide the effective method of cost control. The product line and market division analysis give a clear vision to enlarge the advantage of the company which can help the company and enhance competitive advantage.This combined research of theory and practice is target to improve the quality of cost information, improve the cost control and cost decisions.