The Application Of Target Cost Management In Construction Enterprises

Construction field is the stanchion economy industry in China. Construction enterprise is the main part of the construction field in our country. As China's reform and opening policy progresses, the competition among construction enterprises is increasingly violent in the developing market economy. Many construction enterprises can not adapt to this new market environment and make enough profit in these years; moreover, some of them are heavily in debt and even bankrupt. The factors which cause this dismal situation are many kinds, but the most crucial thing is the cost factor. It is an important part of modern enterprise management, and is the core of the construction enterprises. In order to survive in intensive competition, some construction enterprises establish a more apposite cost system called target cost management (TCM) for cost control. Compared with the work of enterprises oversea, especially for that of multi-national corporations, TCM in China is so backward that can not suit to the fast developing market economy.In order to find out those problems in carrying out, this dissertation expose the conditions of target cost management in construction enterprises; and to have a new view with target cost management by trying to put out some new ideas with the carrying out; also, to deepen and perfect construction enterprises'TCM by a fixed knowledge.The first chapter is the introduction part which mainly elaborates the background and significance of the research, and basic thought of the dissertation. The author summarizes the present state of TCM research both in China and in foreign countries; the second chapter introduced some basic theories of TCM, including theories of cost, cost management, worth engineering, all these theories will be used in the next part; the third chapter is the introduction of cost of construction enterprises; the fourth chapter of dissertation will studies on the approaches of the forecasting and establishment of TCM in construction enterprises; the fifth chapter introduces the cost accounting and control; the sixth part will introduce the principle and method of target cost's analyzing and measuring.The seventh chapter is the essential part of this dissertation. In this part, the author tries to conclude the problems of application of TCM in construction enterprises. Also, in order to deepen and perfect construction enterprises'TCM, the author will use a fixed knowledge and try to put out some new ideas. Moreover, some defects will be pointed out some need further study content is put forward in this dissertation.