Research On Application Of Target-Activity-based Cost Management Model In Construction Enterprise

With the continuous deepening of economic system reform of our country,international visible barriers among the same industry gradually disappear,international large-scale construction enterprise has the strong strength of the Chinese gradually enter the market,with efficient management method and superior employee benefits the impact of the construction industry in our country.In addition,since 2000,the implementation of the "Bidding Law",bidding has become the main competition in the construction industry,"Reasonable low price bid mechanism " To keep the prices down and the employer of the construction industry in a passive position,profit margins continue to be compressed.According to the survey data show that the cost of China’s construction enterprises mainly by direct costs(including material costs,machinery costs,labor costs),material costs,staff salaries,taxes and other related components,The direct costs accounted for an output of about 85%,plus the management staff salaries and related taxes,the remaining profit margins of about 3.5%.In this environment,the modern building industry in our country is not just concerned with the problem whether cost can be reduced,it is important to take effective management to control the cost and reduce the cost of the project schedule and cost together,to establish a sound cost management system.At present,the target cost method and activity-based costing method are used more and more in domestic enterprises,which play an important role in the cost control of enterprises.Target costing is the cost management method to form the basis of full absorption of target costing and activity-based costing both the advantages of this method is introduced into the traditional cost management is relatively chaos in the construction industry,is conducive to promoting the transformation of thinking of construction project management,is conducive to the rational allocation of resources,optimize the construction environment.Therefore,it is worthy to study the application of target activity cost management in construction enterprises.In this paper,the domestic and foreign experts and scholars on the construction of cost management as the basis,and then analyzes the necessity and target costing and activity-based costing method is feasible in the construction industry,with the A construction company to undertake the hotel apartment project as the research object,the project management with activity-based costing management,according to the the specificimplementation of the conclusion that advantages of target costing in practice,provide guidance for construction enterprises to improve management efficiency and cost effect.