Research On Target Cost Application Based On Value Chain

Since the 21 st century,the process of economic globalization is more and more quickly,China’s economy in the national economy of the position are also significantly promoted,is becoming more and more fierce competition of domestic enterprises in our country,especially between manufacturing enterprises,enterprise competition is becoming more and more comprehensive,gradually evolved into the competition between cost.Each enterprise’s development is inseparable from the cost management,cost control and management is also in the development of enterprises.Enterprises to get absolute advantage in the fierce competition will maintain its core competitiveness,to keep the cost advantage,due to the Labour market and rising raw material costs in China,do not take any cost management method blindly want to hold down costs is unlikely,so each enterprise should be combined with actual situation to choose a suitable for their cost management solution.Therefore,in order to adapt to the new market environment,the author thinks that to implement target cost management based on value chain system must be able to adapt to the development of the modern enterprise.Because with the development of economy,the competition between enterprises has been replaced by the competition between the value chain,the space of modern cost control range has expanded to industrial clusters under the value chain of strategic alliance in the new organization form,is the carrier of modern cost management,value chain and goals into control embodies the concept of "open system",emphasizing the importance of the organization to adapt to the environment,starting from the market price,and push the target cost control,can effectively control the cost,improve the efficiency of the capital gains,so set up target cost based on value chain system in the development of modern enterprise competition environment has certain feasibility,and will inevitably to the enterprise cost control and management to develop a new situation.This article from the perspective of the following study: the first part introduces research background and research significance and research method of this article;The second part of institute of literature both at home and abroad as well as the paper on the basis of the review and related theory,the author gives a brief analysis.This part introduces the history and definition of target cost and value chain,the relationship between target cost and value chain,target cost,target cost and the application of value chain and value chain of the relevant concepts;The third part,based on the principle of system and target system of target cost management based on value chain,the target cost decomposition to the market research,procurement and inventory management,product design,production and sales stage,to control the cost of all stages of the enterprise value chain;The third part use case to test the effectiveness of the target of the value chain cost management system,fully demonstrated the feasibility of target cost management system based on value chain;The fifth part in the final analysis evaluation case analysis results,points out the disadvantages and advantages of this system,and need improvements.In this paper,standing on the ground of manufacturing enterprises in our country,in order to reduce the manufacturing cost of products as the goal,through to the target cost management based on value chain system to control the cost of enterprise,through the establishment of target cost,target cost decomposition to the value chain of each link,and then realize the target cost,achieve the purpose of the enterprise cost control and management,finally constructed to target cost management system based on value chain.This paper ends with some furniture manufacturing enterprise as an example,the use of building system of target cost management based on value chain,first determine the unit sales price of new products,according to determine the new product target cost,profit will target cost decomposition to the value chain of each link,stages of value chain cost control,it is concluded that target cost management based on value chain system of the evaluation results.Analysis results show that based on the target cost management system based on value chain,the guarantee of corporate profits,under the premise of meet the demand of market and consumer,substantially reducing the unit cost of new products and the overall cost of the series,which will occupy a broader market of product is of great significance.