The Application Of Target-Activity Based Cost Management Mode In The Construction Enterprise

Cost management is an eternal task of the enterprise management,and is also the core content of the construction enterprise's management.Currently,the management level is low; the waste of cost is high; and the economy is bad; the problems concerned are widespread existing in the constrution enterprise. Especially after our country joined WTO and the Bill of Quantities-based Valuation Norms began to be implied formally, which have brought an even more rigorous challenge to the cost management of the construction enterprise.The constrution enterprise wants to acquire the better economic performance and obtain a bigger development, which requires help of the latest progress of the other related management field to reform the current cost management mode.The target-activity based cost management mode formed in the foundation of taking the advantage of the target cost management method and the activity based cost management method, and is a kind of advanced cost management method. There is an important instructing significance about it to the research theory and the actual operation of the enterprise cost management. Although the target-activity based cost management mode has been applied in all kinds of professions extensively, it is still on the trial stage in the application of the construct enterprise.This text, in the foundation of the predecessors investigation,analyses the necessity and the possibility of the construction enterprise applying the target-activity based cost management mode,and accordingly puts forward the target-activity based cost management mode of the construction enterprise through combining the characteristics of the construction enterprise itself. Besides,the text also elaborates the concrete measures and methods in the construction enterprise being applied with the target-activity based cost management mode ,and establishes an overall, dynamic control theory of the target cost management based on activity. In addition, by taking the foundation project of some comprehensive building as an example, the text analyses the practicality of the application of the target-activity based cost management mode based on Bill of Quantities.The target- activity based cost management mode has been directed to and put into practice, which is not only beneficial to the construction enterprise forecast and makes sure the target cost from the strategy ,but also optimizes the construction process from the tactics , makes it to ecalculate the construction cost accurately, and to attain the complete control before and after the event, and consequently helps increase the economic performance of the enterprise actually as well as strengthen the competition ability of the enterprise. Moreover, the target-activity based cost management mode is applied in the construct enterprise, which can not only spur the management thought transformation of the whole industry,but also can promote the profession environmental change,and provide more reference and tactics in theory.