What is the difference between the modern cost management model and the traditional cost management model?

Methods are different, modern cost management uses a variety of methods (variable cost, ABC, ABM, standard cost method, etc.), while traditional cost management, generally full cost method.

2

Tools are different, modern cost management is generally automated using ERP, while traditional cost management is based on manual forms of costing.

3

Differences in focus, modern cost management focuses on the ex ante and ex post, the implementation of cost early warning, focusing on research and development costs; while the traditional cost management, only limited to the manufacturing field, and mostly ex post.

4

Different strategies

Modern cost management focuses on the strategic level, focusing on suppliers, and suppliers to establish a partnership, *** with the cost reduction, but also communicate with customers, from the functional design to reduce costs. These are not traditional cost management.