The Virtual Cost Center of the Complex Product Development Projects and the Buffer Cost

According to the virtual profit center of value engineering,combined with the traditional target cost control method,the paper first proposed the concept of the virtual cost center.In order to adapt to the uncertainty characteristics of complex products better,it divided the cost of a single target in the traditional target cost control into four virtual costs,and took one of the lowest cost as a the virtual cost center virtual target cost.To intuitively control the use of the actual cost,according to the relationship between the four kinds of costs,and reference to the concept of buffer time in project management,the author proposed the buffer costs.By comparing the virtual target cost,the actual cost and the three buffer cost,the project manager able to visually see the actual cost information.