Research On The Application Of Precise Cost Management In Enterprises

Cost management has experienced rapid development under the sustained economic growth in China.As China gradually integrated into the global competition,the management theories and methods conducted by the Chinese entrepreneurs have undergone a profound reform.With respect to this matter,the "Toyota Lean Manufacturing methods" and the management methods conducted by the founder of Formosa Plastics Corporation in Taiwan gradually became role models for these Chinese enterprises to carry out the industry standardizations.Nowadays,the Chinese enterprises not only cope with fierce competition in the global market,but also face inflationary pressures brought by the aftermath of the global economic crisis.The indefinite postponement of the global economic recovery has once again influenced by the continued spread of the debt crisis in Europe and also caused extremely weak market demands in both international and domestic scopes for Chinese enterprises.Nevertheless,several definite regulations like the?Labor Contract Law?signified the enterprises that an end of the era of cheap labor power in China.Initiating change,intensified competitions,recessed market and deflation policies forced the Chinese enterprises implement cost management and reinforce their capabilities to achieve the goal of sustainable development.Under such circumstance,this paper will introduce a cost management mode that especially designed for the Chinese enterprises and their unique operational states.The author believed that this mode may play a significant role in guiding the future development of Chinese enterprises.Precision of cost management is based on the theories of supply chain cost management.The merit of the mode includes integrate all the cost incurrence points on the supply chain and sets exclusive control standards and staff to control over the cost points.During the process,uses digital servo system to analyze and verify cost targets and then,monitor the targets and operating process by using the methods of retrieval and anti-inspection.This paper consists of six main parts.The introduction induces the four stages of the development of the precision of cost management.The second part introduces the basic concepts,ideas and frameworks of the role and significance of the precision of cost management.The key point focuses on 4C cost management system.The third part especially focuses on practical application of the precision of cost management and gives special attention on 4C cost management system in practical operations.The fourth part studies how to solve real problem and improve efficiency.The final part analyzes how to make the precision of cost management prominent in overall business management.