Application Of Target-Activity-Based Costing Management Method In G Construction Company

In recent years,China’s market economy has been constantly improved,and the mode of social production has also undergone profound changes.As one of the pillar industries of the national economy,construction industry is greatly affected.In the context of market competition,construction companies usually win their objects at the expense of reasonable bidding prices.In order to ensure their profit targets,cost management is of great importance,so it is urgent to choose appropriate and comprehensive cost management method for construction companies,which has a key guiding significance for reducing consumption and improving efficiency of various construction projects.The Target-activity-based costing management method is the combination of objective cost management and activity-based cost management,which aims to overcome the defects of single cost management method and help enterprises to open up new ideas.Therefore,the Target-activity-based costing management method is a cost management method that can adapt to the characteristics of the construction industry and lead the construction company to the road of high-quality development.Based on G construction company as the research object,in view of the estimated costs for the project does not have a strategic perspective,failed to follow the market and take the market as the guide,is unable to provide accurate cost information in the construction process and the indirect cost allocation is not reasonable cost management problems,analyze and point out the necessity and feasibility of Target-activity-based costing management method.Then,case study,qualitative analysis,quantitative analysis and other research methods are adopted to take S hotel project as an example to introduce the specific implementation steps of G Construction Company’s application Target-activity-based costing management method in detail.By comparing the traditional cost management method,this paper makes a qualitative and quantitative analysis of the effectiveness of project application,and points out the advantages of the Target-activity-based costing management method.Finally,from the managerial and operational aspects of the implementation of the Target-activity-based costing management method safeguards.Based on the above research,a conclusion can be drawn:the application of Target-activity-based costing management method in construction companies is feasible.The implementation of this method can integrate the resources of the enterprise and improve the close cooperation between various functional departments.Compared with the traditional cost management method,it is more inclined to comprehensive management.Its cost management is more comprehensive,the cost accounting is more detailed,the obtained data can reflect the construction process of the cost of each stage of the consumption,but also more conducive to the management personnel timely make the corresponding cost management decisions,to achieve the cost objectives.This paper aims to build a set of more appropriate and complete cost management scheme for the company based on the existing research on goal-activity based cost management method,combined with the actual situation of G Construction Company and centering on the cost management problems found at present,which has certain practical significance.At the same time,the case of applying target-activity-based cost management in G Company’s construction project can provide reference experience for other construction projects of the company.