Application Research On Activity-based Costing In Project Cost Management

With the advent of the era of meager profit, construction projects andenterprise market competition is increasingly fierce, cost management as animportant part of business management, is becoming increasingly important.This article first start from the basic theory of activity-based costing systemdescribed the background of the activity-based costing, its features andadvantages, as well as from the perspective of "operations" accounting of thecosts, analyze the performance of methods. Combined with the actual situation ofthe project cost management on a combination of both possibility and necessity.On this basis, focuses on activity-based costing in the project cost management,and the S corporation, for example, described from the breakdown of the job, tothe cost driver to determine and, ultimately, job cost accounting processes andinformation systems implemented.Compared with the manufacturing cost of the product management, projectcost management more complex and varied the difficulty of standardization ofthe job is also higher, especially for large construction projects and projects that,in practice, the implementation of activity-based costing very difficult. Thesignificance of this study lies in the improvement of the theoretical system ofactivity-based costing, the number of contributions, but rather try to realizeoperating cost theory and the theory in the project cost management, especiallyin the cost management of large projects, implemented activity-based costing inthe industry since that draw reference, I will be greatly encouraged.