Research On The Improvement Of T Real Estate Company's Cost Management Based On Target-Activity Cost Method

The real estate industry is a high-profit industry,but as the industry value-added growth rate decline and the implementation of the country's policies,in order to maintain the profit of real estate project investment,improve the overall economic efficiency and competitiveness of enterprises,enterprises need to strengthen the cost control,reduce the cost of enterprises.The target cost method and activity-based costing method are generally adopted in the cost management of enterprises.This paper combines the two commonly used cost management methods and formed the target-activity cost management method,which is applied in T real estate company,then,summarizes the advantages and disadvantages of this method and its management effect.This paper firstly reviews the relevant literature of cost management at home and abroad,summarizes the commonly used methods of cost management,and then defines the concept of cost and cost management.By comparing the advantages and disadvantages of the target cost method and activity-based costing method,paper introduces the target activity-based costing method.This method integrates the two classical cost management methods to achieve the purpose of learning from each other.Paper based on the case of T real estate company's A project.First of all,present the situation of its cost management,concluded that enterprise's cost management effect is poor,then analyzes the target activity-based costing method in the implementation of the necessity and feasibility of T company,draw the conclusion:T company uses target activity-based costing method can effectively improve enterprise's cost management effect,help to improve staff enthusiasm and enterprise competitiveness.Then,introduced the target-activity cost method in T company,and comprehensively managed the cost of project A,in the order of target cost setting,activity division,target cost decomposition,activity-based costing and cost difference analysis.Finally,evaluated the advantages and disadvantages of this method.The data prove that the target-cost management method has indeed produced a good effect on T company's cost management.The application of target activity-based costing method can make T company's cost control at a reasonable level.In addition,this cost management method is conducive to the reasonable collection of costs and the utilization of cost information by enterprises.As a small and medium-sized real estate company,T company is different from large group real estate companies in many acts,such as simple organizational structure,lower project complexity,direct management process and quick response time.At the same time,the limited scale also makes the small and medium-sized real estate companies uses traditional management method,the degree of informatization is lower,and the profit is greatly affected by the cost.Therefore,it is more urgent for small and medium-sized real estate companies to adopt effective cost management methods to facilitate the development of enterprises.