The new train of thought of modern cost management

The cost management in traditional meaning is chiefly reducing consumption and expenses.It lays special emphasis on product cost accounting in business and considers reducing the cost equal to cost management.Modern cost management requires to manage the cost at a strategic height and to judge the measures of reducing cost by analysis of cost beneficial result.At the same time,the traditional cost management concept should be changed and activity based cost management be adopted to meet the needs of modern science and technology.