Strategic Cost Management Applied Research

From the 20th century seventies, the third industry revolutionary with the main characters of computerization and automation swept across all over the world. Information technology improve every day, electronic technology was used in the industry and formed a so-called new manufacturing environment. At the same time, customer's demand becomes more personal and various, product life cycle becomes shorter and shorter, new product appears time and again, so market competition becomes fiercer gradually .The great changes of economic environment push the management science forward. To adjust to this tendency, strategic management emerged as the times require. The core of strategic management is to look for the lasting competition advantages, which need to obtain competitive cost materials and information. But in this new management environment, traditional cost management cannot adapt to the demand of strategic management because of its own flaws. All these compel the goal of cost management to adjust correspondingly, and demand the practical methods enlarge at the same time, and then formed Strategic Cost Management (SCM).From the 1970s, enterprise's strategy and cost management were combined by SCM which is a rising subject. Carry on overall understanding, control and improvement on enterprise cost behavior and result from the strategy height, use the finance information and the non-finance information to help a enterprise draw up outstanding strategy, and then make great efforts to seek and create the long-term competitive advantage of the enterprise. The appearance of SCM settles the problem which traditional cost management confronts under new environment radically. As an effective cost management method, SCM has aroused attention in theoretical and practical fields. In our country, with the employment of strategic management ideal, SCM posed a new way in enterprise's cost management. In this thesis SCM is studied.