Study on the Integration of Strategic Cost Management and Activity-Based Costing
|Keywords||strategic cost management activity-based costing cost management strategic management|
Strategic cost management seeks to manage costs for both financial and competitive advantage and for both long- and short-term control. Strategic cost management provides the informational fuel for powering the organization’s formulation of strategies, communication of the strategies throughout the organization, development and execution of tactics to implement the strategies, and development and implementation of strategic controls. Strategic cost management includes three main activities: value chain analysis、competitive advantage analysis、 cost driver analysis. Activity-based costing is a new management concept and applied in advanced manufacturing businesses. It is different from the traditional Volume-Based costing and offers more reliable cost information. The article does some theoretical research about Strategic cost management and Activity-based costing together. First, the article uses activity to analyze strategic value chain、strategic competitive advantage、 strategic cost driver. Secondly, the article discusses the possible influence in the cost management when Strategic cost management and Activity-based costing plus together. At last, the article does some research about the adaptation of Strategic cost management and Activity-based costing together and practical application about Chinese Jia Ling Industry Corporation.