Application Of Activity-based Costing On Project Cost Management In ZT Company

ZT company is a small construction enterprises,mainly engaged in civil construction work.Since 2000,the company has been using the budget-based target cost method to control the project cost,and the use of production site management model to manage the cost of the project,these measures can contribute to the cost management project of ZT company.but in recent years,with the increasing intensity of the regulation and control of the real estate industry,the overall economic benefits of the construction industry and the decline in the output value of profit margins,ZT company's management has encountered a huge challenge.The company has been implementing the traditional cost management mode is increasingly obvious shortcomings in this environment,it is difficult to implement the responsibility cost,it is difficult to evaluate the performance,it is difficult to establish incentive and restraint mechanisms,which makes ZT company faces a huge cost management pressure.To solve these problems,innovation of cost management is the most effective method.The Activity-Based Costing method,as an advanced cost calculation and management method,can provide relatively accurate cost information,establish cost responsibility,strengthen cost control,and strengthen the project cost management work,and further for ZT company to formulate correct strategies,improve the economic benefit.This paper is divided into six parts.The first part is the introduction,mainly introduces the research background,the significance and the method,and the project cost management and Activity-Based Costing in the direction of research scholars at home and abroad,and summarizes the research results,then shows the frame structure of the paper;The second part discusses ABC theory and project cost management;the third part analyzes the current situation of the cost management of ZT construction company project research and the existing problems,and the reasons of these problems,further illustrates the necessity of the implementation of Activity-Based Costing in ZT company and feasibility;The fourth part through the application of Activity-Based Costing in the H project of ZT company,the company uses Activity-Based Cost to achieve cost reduction and efficiency goals,and realize the benefit of the management,and finally puts forward suggestions to optimize the management;The fifth part is ZT company in the application of operating cost method should have the matching measures;the sixth part is the conclusion,and points out the shortcomings of this paper.