Activity-based Costing Applied Research In Architectural Decoration Industry

With the development of China's socio-economic, the architectural decoration industry is growing rapidly, and the competition among enterprises is getting fierce. After the three-year transitional period of joining the WTO, China's architectural decoration market has been completely open to the foreigners. Architectural decoration companies in China are facing unprecedented challenges. The tender offer is becoming less and less for the fierce competition in the market, resulting in a further shrinkage of the profit margins which was small originally. If enterprises want to survive and develop in the fierce competition, it is necessary to change the extensive management pattern, and reduce the cost of the project by strengthening their construction cost management, so as to increase the economic profit.This paper targets on the application of Activity-Based Costing theory in architectural enterprises, and analyzes the present status of their Enterprise Cost Management. Through the introduction of Activity-Based Costing theory, and the analysis of the implementation of the activity-based costing examples, this paper discusses ways to introduce Activity-Based Costing to the architectural decoration enterprises, and puts an emphasize on the use of the accurate project cost accounting of the activity-based costing, so as to lower project costs, improve management and enhance the economic efficiency of enterprises.