Construction Companies Target Cost Management Studies

Construction field is the stanchion economy industry in our country. Construction enterprise is the main part of the construction field in our country. As China's reform and opening policy progresses, the competition among construction enterprises is increasingly violent in the developing market economy. Many construction enterprises can not adapt to this new market environment and make enough profit in these years; moreover, some of them are heavily in debt and even bankrupt. The factors which cause this dismal situation are many kinds, but the most crucial thing is the cost factor. It is an important part of modern enterprise management, and is the core of the construction enterprises. In order to survive in intensive competition, some construction enterprises establish a more apposite cost system called target cost management (TCM) for cost control. Compared with the work of enterprises oversea, especially for that of multi-national corporations, TCM in China is so backward that can not suit to the fast developing market economy.From the combination of theories and practice and by way of case and normative researches, this dissertation focuses on the TCM of the construction enterprises. The author raises suggestion to deepen and perfect construction enterprises'TCM model by making a thorough analysis and summary of CREC's TCM model.The whole dissertation is divided into 5 chapters.The first chapter is the introduction part which mainly elaborates the background and significance of the research, and basic thought of the dissertation. The author summarizes the present state of TCM research both in China and in foreign countries.The second chapter mainly discusses the cost management status of CREC. The author gives the history and status of CREC, analyzes the inner factors,including combination of products, assets and financial situation. Then the author points out the necessity to improve TCM by discussing the cost management status of CREC.