Improving The System Of Target Costing Base On Activity-based Costing And Earned Value

Our country’s economy is developing rapidly, the highway transportation,which consideredas "artery" of the national economy, is becoming more and more important. It is becausethe highway transportation has the advantages of quick, convenient that more and moreinvestment which come from nation and other social coporation. Undoutfully it will provideopportunity to stimulate the development of the constructive industry of highway.In themeanwhile,the road&bridge constructive industry will confront fierce market competition.In order to increase the economic efficiency, one of the important way is to conductthe effective cost control. However, current defect of cost control exists among the road&bridge company,which on the one hand, focus more on the budget and pay less attention tothe cost control in the process of project, one the other hand seldom figure out the factors toinfluence the cost. These problems will lead to low efficiency of usage of resource, and holdback the developing potential.In order to improve the road&bridge company cost control model, the academic circlesexplores, but mainly stay in the theory and rarely based on specific company. Thispaper takes A company as an example, improving its current cost control system byintroducing ABC and Earned—Value method, so that we can separate the activities from theconstructive project and evaluate the cost and schedule of different activities. According tothe conclusion, it fit the present situation of the project and acknowledged by the relevantworkers in A company. At last, this paper will suggest how A company improve the currenttarget cost control system and give some advice to extent the new target costing controlsystem which combine ABC and Earned—Value to the other field.