An Application Research On Activity-based Costing In Construction Company

In China, cost management of Construction Company is mostly based on the traditional cost management of on-site production management. Traditional cost management focuses on products, which, does not set up cost responsibility, and will eventually affect the establishment of the responsibility system throughout production. On the other hand, traditional cost management cannot well assess the operation performance, nor guarantee the supervision and economization of resource consumption. This will ultimately fail the establishment of motivation and restriction based administration mechanism. The best solution to these problems is to innovate and improve the current mode of cost management by setting up a new system of activity cost management through a careful study of the pattern of cost management in the Western countries.Based on standard research and case study research methods, and a comparison of the theory on traditional cost management and the theory on activity-cost management, this thesis introduces a tentative study on the pattern of activity-cost management. The author, after an introduction of the theories on activity-cost and activity-cost management, conducts a thorough study on the application of activity-cost management in Tianjin construction main contracting co.ltd, and therefore design the blue print of activity-based costing for Tianjin construction main contracting co.ltd.