Application Research Of Target Cost Management In Real Estate Enterprise Development Projects

In recent years,China's real estate industry in all kinds of cost rising,the financing difficult and high cost of financing,real estate industry faces the pressure of many sided,profiteering era has ended,for real estate enterprises is facing huge challenges,real estate enterprises for survival and development must be for "cutting expenditure",and "throttling" must require companies to form the effective cost control mechanism make the enterprise profit maximization,so as to improve its market competitiveness.Therefore,the strategic significance of cost management is more important and urgent.At present our country real estate enterprise cost control level difference is larger,and for real estate development project target cost management theory study is less,most of the cost management of real estate development enterprises still adopt the method of accounting afterwards.How to use the target cost management method to control the cost of real estate development enterprises has become the problem that enterprise managers have to face.Therefore,this article in the analysis of existing literature and data on the basis of target cost management is closely combined with the theories and methods of target cost management,the target cost management method in the practical application of K company M project process systematic analysis.Target cost management method in the application of target cost management,mainly reflected in the following four stages: the first is in the product planning stage,one is through the market demand to forecast the price after detailed analysis,the second is combined with the case,determine the target enterprise profit margins,three is to determine the target cost of the project;Secondly,it is in the preliminary design stage that the project plan should be optimized with the value engineering method,which will improve the project value and reduce the development cost.Third,the bidding procurement stage is divided into the bidding procurement category,then the strategic procurement mode is applied to implement the bidding procurement toreduce the project cost.Finally,during the construction stage,the application of contract management and liability cost should be strengthened,and the database should be collected and collected in a timely manner after the final cost of the project is determined.In this paper,the results show that the target cost management method makes up for the traditional cost management method is the defect of product pricing model is too simple,the application of target cost management in real estate development project can play a guiding role.