Abstract: The paper classified the participants in the operation of enterprise cost control system, defined senior-rank operators and low-rank operators according to symmetry of information, and pointed out the game equilibrium between supervisors and low-rank operators which is decisive to the operating effectiveness of cost control system. It also discussed the factors that affect the operating effectiveness and gave some suggestions on how to improve operating effectiveness of cost control system for small- and medium-sized textile and apparel enterprises.

Key words: game theory; textile and apparel SMEs; cost control; operating effectiveness