Constructing the Cost Control System Based on Game Theory's Analysis

Abstract

Enterprises are facing increasingly fierce competition. Cost management has become the core of enterprise management. How to implement cost control effectively and enhance the market competitiveness of the products become the one of the key issues relating enterprises' survival and development. Enterprises have to make effective control of product costs to get the survival and development. This paper using game theory to analysis the relationships between enterprises and employees as well as the staffs in the course of cost control, building China's enterprises' cost control system, and bringing enterprises and employees from non-cooperative game to cooperative game, enhancing enterprises' level of cost control and market's competitiveness.