The Research Of Design And Application To Mode Of Strategic Cost Management Based On Value Chain

Cost management is an enduring subject that the theory and practice study all the time. Limitations of traditional cost management shows have obviously no longer adapt to the requirements of the modern enterprise management. In the1980’s, American and British management of accounting scholars advocate, the strategic cost management gradually formed. In a fierce situation between firms, SCM is becoming more and more important in enterprises. Therefore, the theory and practice has an embedded research of SCM, and they put forward three modes of SCM:Shank’s mode, Activity—based Costing Management and Cost Designing. Each mode has its own advantage, but they are not perfect, also existing defects respectively. And after a lot of studies, we found three models have a certain complementary each other. So in this paper, on the basis of the value chain, a new mode framework is put forward by improving these three models.First of all, in this paper, the existing three modes of SCM are explored, and through the analysis of the basic principle of their respective concluded their respective advantages and disadvantages. And through the study complementary between them are found. Then, on the basis of the value chain, a relatively complete new mode is presented through the three modes for fusion. Finally, in the manufacturing company of Water motor for example, the new mode was practiced.