Application Of Activity-based Costing In The Road Bridge Project Construction Enterprise

Cost management controlling is necessary for the construction enterprise to get theprofit from projects. There are many problems such as the bad cost management, thedifficulty to control cost accurately in most construction enterprise with the traditional costcalculation and management approaches. However, with the development of projectmanagement information, the overhead expenses increase great and cost managementrequires more and more subtle. So the disadvantage of traditional cost calculationapproach also increased.Activity-based costing is an advanced method of cost accountingand cost management, which bases on activities and takes cost drivers as media and offsetthe traditional management.In this paper, the defect of traditional cost accounting is analyzed and then introducedthe activity-based costing with the character of road bridge construction. The model of theactivity-based costing was built with confirm of activities resource cost and the productcost. Finally the feasibility of activity-based costing applying to the road bridge wasdemonstrated with the accurate accounting and activities management. Then theapplication of the activity-based costing in the road bridge construction cost managementis finished.The application of activity-based costing to the road bridge in this paper is valuablewith accurate accounting and new management approach. But how to confine theactivities and the cost drivers is the key of the activity-based costing application which isthe meaning of the dissertation and also the focus of the current scholar.