Volume 9,Issue 9
Against the background of increasing resource constraints and environmental pressures, enterprise cost management models need to shift from traditional cost control to a new development direction, so as to provide theoretical support and practical guidance for the subsequent sustainable development of enterprises. As a sustainable development model that can replace the traditional linear economy, the circular economy can reconstruct the enterprise’s production and operation model through the development principles of reduction, reuse, and resource recycling, promoting the efficient recycling of resources and the structural reduction of costs. Traditional cost management usually focuses on the control of explicit costs in the production link, and it is easy to ignore the potential implicit cost-saving potential brought by resource recycling. However, by requiring enterprises to incorporate the entire life cycle of resources into the cost accounting system, the circular economy model can realize the systematic control of costs in all stages of raw material acquisition, production and manufacturing, product use, and recycling, thereby achieving in-depth optimization of the cost structure.