Abstract: Combined with the optimization setting technology of industrial process and the cost management technology in Handan Iron & Steel Corporation, a cost control system structure of metallurgy production process is presented, which is composed of product target cost setting model, target cost decomposing model, product real cost predicting model, process real cost predicting model, cost setting compensation model and cost controller. Using computer network and database technology, a dynamic cost control system software is developed and applied to production process of Handan Iron & Steel Corporation. With this software package, the production cost is reduced and the enterprise obtains great benefit and market competition.