The Target Cost Management Theory And Method Of Use In China

The Target Cost Management of Japan and USA emphasis the cost planning in the step of product design. Up till now, it has been developed as a profit planning system which plans the product and controls the cost in the design, production and sales phases with varies complicated tools. In our country, though we are experiencing the recovery stage of our economy, the enterprises still face the fierce competition from foreign companies. Another question is that the companies of ours do not notice the development of new production technologies, so the situation of low efficiency and high waste can not be changed. In this context, summarizing the theory and practice of target cost management of China, Japan and USA has significant meaning for Chinese enterprises to improve their management level.In this paper, firstly we discuss the concept and features of target cost management of Japan and USA, and describe the process of it. Then we talk about the features and process of TCM in Chinese companies. Thirdly, according to the theory and practice of foreign company, this essay describes the methods to improve the management level for Chinese company. These methods include the process, technology, structure, cultures and so on. They come from the practice of foreign companies, and are able to be operated efficiently.