Research On Target Activity-based Costing Management At Construction Enterprise

The eternal focus for enterprises is cost management, which is also the key for management of construction enterprises. In order to improve the economic benefits and to make it develops in a rapid and effective way. The existing cost management model needs to be innovated based on the newest process in other managerial fields.Based on the preceding research and according to years'experience of cost management of Qingdao Construction Group Corporation (CNQC), the article brings the idea of Target Activity-Based Cost Management (TABCM). It elaborates the practical steps and methods to apply TABCM by construction enterprises, and sets up the whole active system optimization TCM Theory and related strategy with ABCM as the foundation. (TABCM) is an advanced cost management model fully absorbed from the strength of Target Costing Model (TCM) and Activity-Based Costing Model (ABCM). It plays a positive role in guiding both theoretical and practical study in cost management.As one of the earliest construction enterprises since the foundation of the P.R.C, growing up with the Republic, CNQC took part in undertaking to construct, or construct numbers of landmark buildings and significant projects such as Great Hall of the People, 2008 Olympic Sailing Center, National Stadium,and many more. All of which have been highly praised from home and abroad. On the premise of good quality and low cost in projects management for many years, the achievement of project cost management of CNQC is significant. The principle of cost management, which is"combination of cost and saving; combination of responsibility, power and interest; control under full employment and at every stage; realization of the separation of bid price and actual cost", was built on the process of continuous construction with the theory of TABCM in mind. It arrives at the target of"low cost competition and high quality management", which makes a good base for healthy, rapidly and sustainable development of the enterprise.The implementation of TABCM in construction enterprise will fuel the innovation of the whole industry, promote the transformation of production environment and provide more theoretical support to solve the problems faced by cost management.