Application Of Activity-Based Costing In Project Cost Management Of SJ Construction Company

China is in the transition period from a low-income country to a middle-income country,and construction material production is an important sector of the national economy,and it has become an important force to promote rapid growth of the national economy.The ultimate goal of the enterprise and the basis of survival must be achieved through cost-saving investments,that is,maximizing the economic benefits of the project.At this stage,China's construction enterprises have greatly increased the ratio of external transaction costs and construction indirect costs.Therefore,the traditional cost accounting system has been unable to meet the cost management needs of contemporary construction companies.Only by continuously improving the advanced nature of cost management can companies ensure an invincible position in the fiercely competitive construction market and enable them to further improve and grow.Not only can it provide relatively accurate cost information for each engineering product,but also understand the resource consumption process,providing a basis for the company to optimize the construction operation process,improve cost management level,and enhance market competitiveness.Based on the understanding of SJ Company and the research results of related literatures,this paper applies the activity costing method and project cost management to the company,and demonstrates the necessity and feasibility of the activity cost method in a case-based manner.Research:By using activity-based costing,companies can achieve their goals of reducing costs and increasing efficiency,and strive to improve the company's current relatively simple cost management.At the same time,the activity-based costing method can penetrate into the operation level of the company's construction projects,perform cost accounting and management,remove non-value-added operations in the construction process,optimize business processes,reduce waste of resources,and improve the company's project cost management level.For the purpose of cost reduction,increasing efficiency and operating development of the enterprise.Finally,relevant measures have been proposed to companies based on activity-based costing.This article concludes by calculation and analysis that the application of the activity-based costing method to SJ Company can not only avoid complex construction procedures,improve the utilization of building capital,optimize and reduce repeated workloads,but also effectively reduce the cost of the enterprise,thereby improving the engineering cost.It can be seen that compared with the traditional cost management method,the activity-based cost method has greater advantages.Activity-based costing can bring good opportunities to enterprises,and construction companies should promote the full implementation of this method as soon as possible to promote enterprise production to a good situation and improve enterprise performance levels.