Research On The Application Of Activity-based Costing In The Project Cost Management Of M Jian'an Company

The construction industry is an industry that includes architectural design,construction,decoration,management,and maintenance of original buildings.It occupies an important position in our national economy and is closely related to our culture,life,and economy.In the context of the "Belt and Road",construction companies are facing increasingly fierce competition.Cost management and control have become the key indicators for companies to take the lead.Therefore,cost management is a content that companies pay attention to and pay attention to.Enterprises in the construction industry widely use traditional cost methods,but this cost accounting method gradually reveals its shortcomings in the process of today’s mechanized cost increase and diversification of the production process: although it can reduce costs to a certain extent,it cannot Perform accurate and effective cost accounting and measurement.The operation cost method introduces the concept of "operations",and allocates indirect costs according to cost drivers in accordance with the idea of "operations consume resources and products consume operations".Through reasonable allocation of indirect expenses,the activity cost method helps to solve the problem of distortion of cost information under the current cost method,enhance the reliability of cost information,and improve the cost management level.At present,the application of the activity cost method in the construction industry is not as extensive as in the manufacturing industry,so it is of great significance to study the application of the activity cost method in the construction industry.Based on the relevant concepts of the operation cost method,based on the basic situation of M Construction and Installation Company,cost structure and management status,existing problems and reasons analysis,from the five aspects of the construction process of the S project,the operation cost method is carried out in the M Construction and Installation Company S project The design,based on the cost results under the two cost methods,conducts operation cost analysis and operation management,and then proposes the safeguard measures for the application of the operation cost method.The entire process uses four methods: literature analysis,case analysis,interview communication and comparative analysis,to provide a basis for the application of the operation cost method in M Construction and Installation Company,to helpM Construction and Installation Company obtain more accurate and reliable cost information,and improve its own The level of cost management,and thus gain an advantage in the industry competition,but also provides a demonstration for the application of operating cost method in the construction industry.