Enterprise Cost Management_196-A brief discussion on the advantages of enterprise strategic cost management

A brief discussion on the advantages of enterprise strategic cost management Gao Xiaoqian (Sichuan Vocational and Technical College of Industry and Commerce 6) 11830 Abstract Cost management is one of the important contents of enterprise management. It is to provide enterprise managers with results and help them use this cost information to make scientific and correct decisions.

Therefore, how to present this information, this article mainly summarizes the advantages of strategic cost management by analyzing the characteristics of strategic cost management.

Keywords corporate environment, cost management, strategic cost management 1. Introduction For a long time, our country has implemented an accounting and reimbursement cost management model that is oriented to target profits, focuses on post-event accounting, and uses complete cost method as its content.

Enterprises mainly focus on cost saving as the starting point, focusing on product cost accounting, emphasizing the provision of financial information required to reduce consumption and external statements, but do not pay attention to the quality and function improvement of products or services, and ignore the provision of non-property information such as customer satisfaction.

After entering the 2nd century, if enterprises want to remain invincible in fierce competition, they must pay attention to cost management and scientifically predict the development trend of modern cost management with a strategic vision.

2. Modern enterprise environment and its changes The growth of market and trade is the primary reason for the drastic changes in the modern enterprise environment.

1. Due to the development of high-tech and increasingly intensified international market competition, both enterprises and customers have been affected by economic interdependence and increasingly fierce competition.

Most customers pursue low-price, high-quality products in global trade. The demand for products is becoming increasingly personalized and diverse. The international division of labor and cooperation are becoming increasingly close, and competition is becoming increasingly cruel, making business managers aware of the importance of producing and selling abroad.

sex.

, entering the era of knowledge economy, competition is increasingly intensifying, and world-wide economic integration 2 has accelerated the global competitive landscape.

Competitors on the market are no longer limited to domestic companies. In order to maintain competitiveness, companies have adopted new production methods, information technology, and information technology to continuously strengthen their competitive advantages. They are all trying to improve their competitiveness in terms of capital, equipment,

It surpasses its opponents in terms of manpower, cost, and mechanism, which leads to great changes in the cost structure of the enterprise.

, Customers' increasing expectations for product functions and quality are another three important changes in the corporate environment.

Due to the increasing personalization and diversification of customer needs, companies must add new features and new products as quickly as possible, resulting in a shortened product life cycle and more intense competition.

Enterprises must construct new business processes to create value for customers and improve customer satisfaction.

The past focus on high-volume, low-cost production has shifted to the current focus on quality, service, timely delivery, and customer demand for special features.

In response to changes in marketing and production, the management organization also changed.

In the past 4. Due to changes in marketing and production, companies have paid more attention to financial indicators such as profitability. Now companies pay more attention to non-financial indicators such as customer value and satisfaction, such as new product product quality, delivery time and customer satisfaction.

Satisfaction etc.

Development, 3. Characteristics of strategic cost management Strategic cost management is a new, comprehensive and forward-looking modern management method. It stands at a strategic level and transforms the external pressure of market competition into the internal motivation of the enterprise, thereby

A management method to win long-term competitive advantages and development strategies for enterprises.

In summary, strategic cost management mainly has the following four characteristics: Extroversion.

Traditional cost management is based on the traditional enterprise management system 1. It focuses on the internal decision-making, planning and control execution of the enterprise, and is an inward-looking financial information system.

Strategic cost management is to stand at a strategic level, pay attention to changes in the company's external environment, face competitors, analyze the company's own position, and use the company to compete. It is an export-oriented comprehensive information system.

Advantage as the main goal, competitiveness.

Strategic cost management puts the focus of cost management on the cultivation of sustainable competitive advantages of enterprises.

The purpose of cost management is to help enterprises establish competitive strategies and adopt cost management strategies that match them, so that enterprises can form their own competitive advantages and create their core competitiveness in the fierce market competition.

Defeat the opponent in the battle, long-term.

Strategic cost management transcends the boundaries of an accounting period and is based on analyzing changes in the competitive position of enterprises over a longer period of time and striving for long-term strategic goals and competitive advantages over a longer period.

For example, when the manufacturing industry manages labor costs, according to the traditional cost concept, companies tend to hire employees with longer service experience and higher technical proficiency to reduce labor costs. However, when measured using the strategic cost concept, companies will proceed from long-term interests.

, employ relatively young, educated, and innovative employees to gain cost advantages over a longer period of time.

Comprehensiveness.