Abstract: Cost control standard setting and incentive to employees is always an important issue in the management science research. With the evolution and change of enterprise environment, Taylor monolayer standard of cost control and incentive system is questioned, and the new concept of double standard cost control appears. The validity of double standard cost control in enterprise, satisfaction degree of employees individual rationality demand and maximization of enterprise profit are closely related. Based on the analysis of employees utility function and enterprise income function under the action of double standard cost control, construct incentive model for meeting the demand of employees individual rationality and enterprise profit maximization. Example of the model for further indicates that the employee incentive model under the action of double cost control standard plays an important role to motivate employees to control costs and improve enterprise income level.

Key words: double standard of cost control, utility function, enterprise income, incentive model