Research On The Application Of Activity-Based Costing In The Cost Management Of Construction Project Of Q Company

The report of the 19 th National Congress of the Communist Party of China pointed out: "China’s economy has shifted from a high-speed growth stage to a high-quality development stage,and it is in the key period of changing the development mode,optimizing the economic structure and transforming the growth kinetic energy".Since the 21 st century,as an important part of the economic system reform,the construction industry has taken the lead in entering the market,and builders have also taken the lead in stimulating their vitality through the system reform.In the past twenty years,with the development of the national economy,the construction industry has achieved rapid growth.At the same time,it is also returning to the national economy and becoming the pillar of the national economy.In order to improve the profitability and development level of construction enterprises,construction enterprises are required to strengthen the cost management of construction projects from the enterprise level in combination with their own actual conditions.In September,2017,in order to promote enterprises to strengthen management accounting,improve internal management level and promote economic transformation and upgrading,the Ministry of Finance formulated the first batch of 22 management accounting application guidelines,such as Management Accounting Application Guidelines No.300–Cost Management,according to the Basic Guidelines for Management Accounting,aiming at promoting the practical application of management accounting theory in enterprises.Activity-based costing,as an advanced cost management method,finds out the consumption path of product cost through the effective allocation of indirect costs,helps construction enterprises to effectively grasp the real cost information,and optimizes the cost management activity chain by reducing non-value-added activities,thus improving the cost management level and increasing economic profits.In this paper,using the case study method,taking the construction project of Q company as the research object,the current situation of RC project cost management is collected,and the existing problems in the process of cost management are pointed out and analyzed.Secondly,after exploring the feasibility of the application of activity-based costing in RC projects,the basic principle,application process and general principle of constructing the accounting system of activity-based costing are put forward.On this basis,the accounting scheme of RC projects is designed by using activity-based costing.By comparing the application effects of traditional costing and activity-based costing in RC projects,it is found that the application of activity-based costing in RC projects has certain advantages.Finally,combined with the above research,the safeguard measures of applying activity-based costing in Q company’s construction projects are put forward,and the research conclusions and prospects are expounded.The research shows that activity-based costing,as an advanced cost management method,can effectively solve the problem of inaccurate cost information caused by the simple distribution of indirect costs in different plots of Q Company’s construction projects.At the same time,on the basis of obtaining more accurate cost information,by analyzing cost information,we can give full play to the advantages of value-added costs,reduce or even eliminate non-value-added costs,so that the construction projects can achieve obvious results in improving operations and optimizing processes.Promote lean production and refined cost management of construction projects,and then improve the cost management level of Q Company as a whole,enhance the market competitiveness of the company,and make case practice for other construction enterprises to apply activity-based costing,providing reference for follow-up research.The innovation of this paper is that on the basis of obtaining the real cost data of Q company’s construction projects,activity-based costing is applied to the construction industry,and an activity-based costing accounting system is established for RC projects,which demonstrates the feasible operation for the construction project cost management,promotes the transformation and development of construction enterprises,and provides new ideas for cost management.