Research On The Construction Stage Cost Management Of Small And Medium Real Estate Enterprises Based On ABC

Under the realistic condition that "Golden Era" of real estate has been approximately ended, domestic real estate companies face a growing threat of going on with increasing competition in this industry. Especially those small-scale or medium ones, with less cash, poorly managed, will live harder.Thus, in the first part of this paper, we discuss the status quo of those small-scale or medium real estate companies. By investigating the current competitive situation, analyzing those valuation methods used by those companies or encouraged by the state, we can draw the conclusion of existing problems about cost management for small-scale or medium real estate companies.To solve the problems above, we need to learn some better cost management models from western countries, and improve ours to a higher level. Therefore, in the following part, we’ll discuss the theory of Activity-Based Costing, specifically describing its background of bringing up, the content of this theory, calculation methods and its application models.We make a detailed analysis in the third part about whether this method being fit for being used in cost management at the phase of construction. Through those analysis above, we find the coincidence between project cost management features and conditions that Activity-Based Costing needed. So we try to use Activity-Based Costing to do cost management at the phase of construction.Finally, in the fourth part of this article, based on the practical situation of cost management at the phase of construction, we attempt to gathering and apportion the engineering cost by using Activity-Based Costing. This attempt aims at offering a suitable cost accounting method for small-scale or medium companies, a method of optimizing their resource allocations, of making right decisions, of decreasing costs and improving the competitiveness of survival.