The Design Of Daqing Chemical Industry Group's Strategic Cost Management Mode

With the deepening of global economic integration, the competitivenessbetween enterprises increasingly violent, especially after the U.S. subprimemortgage crisis which triggered the financial turmoil sweeping the globe, theuncertainty of external environmental for enterprises deepen, survival anddevelopment of enterprise suffered great challenges. With the externalenvironment changing dramatically, each big enterprise especially oil enterprisesare both worried and hopeful. Facing the market severe atrophy, price advantagenever exist, the enterprise had to re-examine the cost. However, how toeffectively lower costs, and treat the cost in a strategic view, explore some costmanagement modes which adapt to rapidly changing enterprise competitiveenvironment is an important issue of enterprise management.This article starts from the basic theories of strategic cost management,conducts review and comparison of strategic cost management theories, takesexample by some strategic cost management practice at home and abroad,analyses the current situation of cost management for chemical group, and pointsout five cost management problems and their causes which exists in the chemicalgroup currently, they are different concept about cost between upper and lowermanagement, incomplete cost accounting information, poor accuracy of productcost information, insufficient dynamic monitoring, unscientific cost managementevaluation system. According to the causes of the existing problems, hasdesigned a strategic cost management mode for chemical industry group anddiscussed on it.The article determines an overall strategy and some specific strategies forchemical industry group by doing strategic positioning analysis. Base on this, thevalue chain analysis and cost driver analysis is performed and cost drive factorsare identified. Makes a dynamic integration of standard costing method andproduction, and stipulates a standard activity-based costing method for costcontrol, and makes appraisal of performance of strategic cost management forchemical industry group at last. Aiming at solving problems of enterprise costmanagement, the article designs a strategic cost management mode to perfect cost management system of chemical industry group, provides a set of brand newideas and methods for promoting enterprise competitiveness.