Activity-based Cost Analysis And Optimization System Of Construction Project

World economic downturn and continuous decline in domestic economic growth have brought a slump and increasingly fierce competitions in building industry.Consequently,many construction enterprises are facing a major test for survival.Under the background of such meager profits,cost control is increasingly important when construction enterprises seek survival and development in the fierce competitions.Construction industry in our country mostly views construction project as a unit.As a result,in order to better control the cost,construction companies should start with construction project and its cost management,and reduce project cost and increase economic benefits on the premise of quality guarantee and schedule as much as possible.However,in the concrete implementation process,there are a lot of problems of accounting and cost management: on one hand,the cost management consciousness is weak,the responsibility system is not sound,and an effectively incentive mechanism is absent;on the other hand,cost management goal is not clear,and cost accounting becomes a mere formality.In this thesis,starting with the problems in current cost management of construction projects,the critical factors which restrict the cost management level promotion are identified.Combining the features of large investments,long cycles,complex processes and varied interagency collaborations and so on,the importance of initiative participation of the operation personnel in the cost management is proposed.Based on the activity-based costing,this thesis intends to establish a common and self-optimizing cost analysis and optimization system of the construction project.On this basis and combining the characteristics of the construction project,first,by discussing the feasibility and necessity of cost analysis and optimization system building,the motivation,implementation and organizational guarantee of the system are analyzed so that the basic framework of the system is established.Second,by use of work breakdown structure and activity-based costing,activity-based target cost is determined.Besides,by incorporating the idea of responsibility cost management into the activity-based management and establishing the responsibility center on the operation center,project cost analysis and evaluation are made.By use of the activity-chain theory and the idea of process reengineering,the activity cost of construction projects is optimized and some suggestions are given to project organization and construction.These steps not only reflect the advantage of accurate calculation of the activity-based management,but also combine the responsibility cost management thoughts of "responsibility,right and benefit",which play incentive effect,so as to achieve cost management of full-participation and self-optimization.The ultimate goals in this thesis are to better guide the practical situations,improve the cost analysis and optimization level of construction project,and obtain higher profit with lower cost.This thesis analyzes the cost management of Dongbang City Garden in Rongchang Chongqing,simulates the activity-based cost analysis and optimization system.Specifically,first,activity cost centers are partitioned,the activity-based costing is displayed and activity-based target cost is determined.Besides,the core activities and job centers are analyzed and assessed so as to purposefully offer cost optimization for cost analysis and the optimized subject,object and their interrelation.Additionally,organization and construction of the project are improved based on current organization structures so as to make some suggestions to guarantee the effective operation of cost analysis and optimization system.Furthermore,generality and specific application effects of the operation of the whole system are discussed so that it can be gradually optimized.