Study On Cost Management Ofconstruction Enterprises Fromthe Perspective Of Value Chain

Since Reform and Opening up,China's construction industry has undergone earth-shaking changes from the shackles of government pricing under the planned economic system to the present booming situation.Over the past 30 years,China's construction industry has been in a high-speed,stable and healthy development trend.With the rapid development of China's socialist market economy,the construction industry achieved the highest value-added in the industry as a whole,value-added as many initiatives in 2009-2011.Fixed asset investment scale has been at a high level.In 2014,China's construction industry output value reached 176713.42 billion,accounting for 3.39% of the national economy.The construction industry with its high value,fast growth and other characteristics,become the pillar of China's national economy and it has a huge distinctive impact in the process of economic development in China.In recent years,with the rapid development of the real estate industry,Home Boom is still spreading.As the increasing profits of industry,the number of enterprises increased rapidly,relatively stable.Sales volume changes and profit growth rate is small,and the competition is more intense.Under these circumstances,the construction industry is still between in the growth phase to the maturity of the excessive phase.As China's current economic system is not perfect enough,Bidding system still exists the problem of standard,subcontracting the phenomenon of contracting the object and the tender agent mechanism,and so on.These problems lead to China's construction enterprises in a polarization: on the one hand,some construction enterprises use low-cost strategies in order to obtaining more opportunities for contract projects.So that the contract can not achieve the expected benefits,which led to the decline in business finishing ability,seriously affecting the overall development of the industry.On the other hand,quality enterprises adopted a reasonable cost control methods and made profitable benefits in the low-cost competition.This difference is mainly due to whether the use of advanced cost management and effective cost management system in the same market environment.In foreign countries,the concept of value chain management philosophy has long been applied to the construction cost management.It can be said that if companies can create a value chain by themselves,and attract enterprises on the value chain to use this value chain,it is more likely to increase their market share than a company that provides the entire value chain alone.Combined with the construction value chain and enterprise cost management,it will lead to the specific production enterprises in the production process.Reasonable and effective cost control can be saving capital and improving economic benefits.Company A as the research case of this paper.First of all,this paper will explain the current state of development of construction enterprises,construction industry,and the characteristics of cost accounting enterprises.Secondly,explain the basic theory of value chain and the basic links and basic types are elaborated,which will lay a theoretical foundation for the following analysis.Then analyze the "value stream","job flow" consistency carefully.In addition,the author analyzes the key links of construction enterprises in China,finds out the value-added links and non-value-added links in the operation process of construction enterprises,and uses the activity-based costing method to analyze the cost control of the main links of the construction enterprises.