In today's new normal economic development, insufficient domestic and foreign market demand, and fierce competition in the chemical industry, Shitong Company, while maintaining and striving to expand its market share, rationally optimize internal processes in order to improve the company's overall efficiency. Among them, reducing the cost of products and maintaining a strong competitive advantage is a problem that Shitong needs to solve urgently. This article analyzes the existing problems and internal causes in the product cost management of Shitong Company, and puts forward suggestions such as avoiding market demand fluctuations, reducing material procurement costs and equipment maintenance costs, and avoiding inventory cost fluctuations. <<