| When the property management market becomes more open and business competition intensifies, the environment where the property management business survives and develops has undergone a profound change. The property management industry will change from labor-intensive to knowledge and management-intensive, and these companies are facing rare opportunities and enormous challenges. However, Chinese property management companies should not be in optimistic condition, and the wide loss in this industry was a serious problem. How to solve Chinese this profit obstacle, cost management is the key element. Long subjection to many factors, property management costs have always been so weak and the research has just started. As an advanced cost method, ABC is increasingly widely used in various fields, and plays an important role in cost accounting and control. This paper introduces ABC to property management companies, not only to make its cost management more scientific, but also to change it to be benefitable and to improve its market competitiveness.The paper focuses on the operating of ABC, fully discusses it is necessary and feasible for service industries such as property management, and then creates an ABC system for property management companies. The system is divided into two main modules: the first one is the cost accounting, including the accounting model and the accounting steps, and involves delineation of activities, allocation of resources, confirmation of cost driver, the choice of cost objectives; the second one is the cost control, according to cost accounting information, it calculates and analyze differences between targeted cost and the actual one, for the ultimate achievement to reduce cost. The paper uses a simple example to demonstrate the specific process of the cost accounting, proving that the method is scientific and operational.The ABC system for property management companies provides new thoughts to the cost management in service industries. In practical application, it not only makes the cost management more scientific, but also promotes the profits, increase market competitiveness in great realistic significance. |
