Research On Real Estate Project Cost Management Based On Target Cost Method

Firstly this article studies the cost management of real estate projects on the basis of literature research on cost management at home and abroad,taking Project Ziyunfu of JinHui Group Hangzhou Company as an example.It reviews the implementation of target cost management in all the stages of Project JS,including early planning,designing,and implementation,and discusses on the problems that have occurred and provides solutions.The method of target cost management has played a relatively good role in the whole process cost management of real estate development enterprises.The traditional accounting-based cost management in the past accumulated cost data from the bottom up,which was an post-action control.Usually the total project cost cannot be obtained until the construction documentation stage.It is difficult for enterprises to control the possible profit and loss of the project.The advantage of the target cost management method is to first sort out the overall business objectives of the project,and then decompose it from the top down.In this way,we can control the expenditure within the cost,and it is easy for individual projects to control the total cost.Secondly,real estate development companies can also know the expenditures in operating multiple projects.At the same time,the management under target cost method is not only a single department management of the cost department,but also requires the relevant functional departments to participate,and the division of responsibility is clear.The method of target cost management is a comprehensive application of strategic cost management and all-round cost management.If we want the method of target cost management to reflect a greater value in the whole process of project management,it requires to refine the cost system as delicately as possible and link it with performance evaluation,so that the personnel of each department are clear about their cost management goals.Secondly,the management responsibilities are needed to be clarified in order to facilitate the various departments to formulate corresponding management measures.We should use performance assessment method to enhance the enthusiasm of the target cost management of all employees and promote the cost management of the entire project.We should build a cost database system and form a rich database from the valuable experience accumulated daily,providing a basis for cost planning,a support for cost control,at the same time promoting the healthy and rapid development of enterprises.In the era of big data,real estate companies should also carry out informatization reform and introduce more advanced technical methods to deal with large amounts of cost data.The accumulation of data in cost information database and the processing capacity of cost data should be accelerated,so that efficiency can be increased in enterprises.