An Application Research On Target Costing And Activity-Based Costing In Real Estate Project

In recent years, with China real estate recovery and rapid development, the real estate market competition is becoming increasingly fierce. Cost management will be a key factor for a real estate enterprise surviving and developing in the fierce market. Firstly the paper introduce Target Costing Management and Activity based Costing, which are advanced cost management models. We combine TCM and ABC Management in theory through the analysis of the same& different characters and the feasibility of TC and ABC. Secondly, the paper introduce the condition of cost management in current real estate enterprises and point out the weakness and how to improve it. In this part, the paper proofs the feasibility and necessity of using T-ABC in estate enterprise. Then, the paper illustrates how to use T-ABC in the cost management in a real estate enterprise, including how to formulate target cost, how to distribute the target cost, how to calculate activity cost and so on. Then, the paper shows a case which displays how to use T-ABC in the cost management in a real estate enterprise. Finally, the paper gives a summary. The paper conforms to the actual requirement of strengthening cost control in real estate and has much reality importance and practical value, and at the same time, provides valuable basis of reference for cost control in real estate in china.