Research On The Application Of Time Driven Activity-based Costing

At present,most of the construction enterprises still use the traditional accrual basis of actual cost calculation and management methods.With the increasing proportion of indirect costs and the increasing complexity of internal cost items,the traditional cost calculation method has been unable to meet the cost accounting requirements of construction enterprises under the new situation.Therefore,it is particularly important to choose a suitable cost accounting method to replace the traditional cost calculation method to solve the uneven and unreasonable distribution of intermediate cost in construction enterprises.Through consulting and collating the relevant literature,it is found that the activity-based costing can allocate the cost more accurately and reasonably in the enterprises with large indirect costs.But it also has its own shortcomings that can not be ignored.For example,the calculation process is complex and the workload is huge,the model is not easy to update,and the maintenance cost is too high.The time driven activity-based costing,which takes "time" as the motivation and calculation unit,effectively solves the problems of complex calculation and difficult updating of the model of activity-based costing,and can find the idle capacity of enterprises.Therefore,this paper attempts to introduce the time driven activity-based costing in the construction enterprises,in order to provide more detailed and real cost information for the enterprises,and facilitate the enterprise management to manage the cost status of the company.Through the analysis of the basic situation,operation status and cost accounting status of X construction company,this paper concludes that it is necessary and feasible to apply the time driven activity-based costing in X construction company.In the process of applying the time driven activity-based method to x construction company,according to the characteristics of the construction unit,the corresponding operation center and operation link are set up,the most representative three engineering projects are selected for pilot application,and the simple accounting model of the time driven activity-based method is used for specific application.Finally,we get the specific cost data of three pilot application projects of X construction company,find the idle capacity,and put forward some suggestions for improvement.In addition,the difficulties and problems in the application of time driven activity-based are put forward.The paper draws the following conclusions:(1)It is necessary and feasible to apply the activity-based costing in X construction company.(2)The model is simple,the operation is simple,the result is objective and the application value is high.(3)The time driven activity-based can find out the idle production capacity,which is helpful for enterprises to improve the level of cost management.To a certain extent,this paper can provide a new perspective and reference for construction enterprises to choose cost accounting system.