Abstract:

The present paper reviewed the development of the cost management theo ry and analyzed the similarities and differences of target cost management and a cti vity-based costing management, as well as the feasibility for the combination o f the two managements. It theoretically set up an integrated cost management syst e m of target cost management and activity-based costing management; in addition, it discussed the mechanism for making sure the execution of the cost management system.

Key words: tar get co st mana gement, act ivity-based costing management, activ ity-based co st ing v alue chain, costing base