Based On Modern Cost Accounting Issues Related To Value Chain Management Research

Since the 1990s, developing with the Internet economy, the Knowledge economy, and the economic globalization, the business operating environment and management model has undergone earth-shaking changes, and the task of the enterprise is to create and transmit values. The producers and suppliers, distributors, service providers and end-users depend on each other in the filed of value production and realization. This theory of Cost is competitive with the conventional one dramatically. The traditional low-cost strategy emphasized the enterprise' competitiveness through lower product costs (including purchase cost) to maximize their own profits, which leaded to the contradiction of interests between the producers and the suppliers and the distributors, resulting in fierce price competition between them. The value chain parties who want to buy at the lowest price but to sell at the highest price make the cost only transferred between the upstream and downstream enterprises, and increase the ultimate purchase price of consumer goods, thus weakening the competitiveness of the entire value chain. Therefore, only the whole value chain takes profit can the whole value chain keep the competitiveness. This accounts for the birth of the Value chain management.In today's rapidly changing competitive environment, the relationships between the manufacturers and their suppliers, distributors, retailers and customers become more and closer. The enterprises who want to create and maintain a competitive capability must understand the entire value chain, but not just the part that the enterprise is located. With the appearance of the Value chain management theory, companies had realized that cost comes from every step of production process, and the new value's creation and each kind of resources' consumption happens in the stream of the information flows and the fund flows. The system of tradition cost accounting was unable to meet the need of the value chain management, and the establishment of the modern system of cost accounting which based on the value chain is necessary.After the introduction of the Value chain management theory, this article studied the basic theory of the modern cost accounting managed that based on the value chain management. This part includes the meaning and the classification of "the cost" that based on the value chain management and the beginning of the studies, moreover, it also studies the essential, the goal, the function, the management scope and the main content, the management object, the cost method conformity as well as the modern cost accounting's function classification which based on the value chain management.On this basis, the cost accounting which based on the value chain management will be divided into upper management cost accounting, internal cost accounting and downstream cost accounting, and every part of the main focuses on the main content and methods. Finally, the article summarizes the status and trends of the Chinese study on value chain accounting, and the article also described the viewpoints and perspectives of the major limitations.