Road Construction Project Cost Management Research Based On Activity-based Costing

Currently, enterprises are facing increasingly fierce competition, the relationship between supply and demand changes dramatically, and the profits of construction enterprises are being reduced. In order to maintain competitive advantage, Highway construction enterprises must strengthen cost management. The traditional cost management methods cannot adapt to new environment, indirect costs and administrative costs of highway construction enterprises increase rapidly. Introducing activity-based cost to cost management becomes necessary.This paper introduces the background Activity-based-cost and current applications, respectively from the perspective of domestic and foreign. Detailed analysis difficulties of in the use of the Activity-based cost. Make comparative analysis of Activity-based costing and traditional cost management methods. Describing the feasibility of using Activity-based costing in the highway construction project.Analysis of the highway construction project cost structure and management characteristics; Analysis steps and the implementation of using Activity-based costing in the highway construction project cost management; Design appropriate implementation process. With examples road project, describe how to use Activity-based cost method in cost control and management based on the actual cost situation.