The Establishment And Application Study Of Target Cost Management System For Real Estate Development Project Of KF Company

With several rounds of unveil real estate regulation policy, KF company is facingunprecedented pressure. Cost management is no longer a simple problem about puttingan end to waste of resources and improving the profits of enterprise, it is a strategyproblem for affecting the survival and development of enterprise. But the existing costmanagement already can’t meet the survival of the enterprise, the enterprise needsurgently to seek a set of effectively cost management method for improving thecompetition ability of enterprise.At first, this paper is based on researching the related literature about costmanagement at home and abroad, and analyzes the existing problems of KF company inthe process of cost management, such as the concept of target cost is not clear, the wayof management is not perfect and the key of management is undefined. Then this paperis based on the process of real estate development, and puts forward forecasting targetcost of the project by analyzing the market in decision stage of project, then this titlecontrols designing by predicted cost in design stage and conducts cost optimization, anddetermines the target cost of project; this paper uses work breakdown structure fordecomposing target cost, and put target cost combine with the specific contract whichneeds signing before the implementation of project for forming a contract plan, anddetermines the control points of all kinds of contracts; this paper carries out dynamicmanagement in implementation stage of project, and compares dynamic cost with targetcost for looking for differences and correcting an error, then this paper constructs thesystem of target cost management of real estate development project. Finally, this paper uses the system of target cost management for managing the project of A, the projectachieves the desired effect, and that confirms the feasibility of the system.The research results of this paper are expected to provide a set of method or toolfor target cost management of project feasibly, and this paper can carry one’s point forimproving cost management cost of enterprise and enhancing the core competitivenessby manage the cost of project effectively.