Application Of Activity-based Costing In Engineering Construction Enterprises

With the continuous improvement of economic level and the increasingly rich demand for life,the pursuit of comfortable living environment has become an indispensable part of it,which also invisibly promotes the development of decoration industry.However,the entry threshold of the industry is low,and the competition is great.In the case of similar word-of-mouth,quality and service,it is necessary to rely on price advantage to compete.Price will become the core competitiveness.In order to safeguard the economic benefits of enterprises,the goal of neither overestimating the cost nor underestimating the cost is realized through the fine division of the cost,which makes the pricing of products more reasonable.However,the traditional cost accounting method with product as its accounting center has unreasonable allocation of indirect costs,single factors affecting costs and the possibility of cost distortions,which makes the cost of products unable to be accurately reflected.Reliable cost information helps managers to make more appropriate decisions,and ultimately translates into creating value and achieving target profits for enterprises.Based on the analysis of the present situation of cost accounting of A decoration and decoration company,this paper digs out the shortcomings in the process of cost accounting,puts forward the activity-based costing method in the cost accounting of A decoration and decoration company,and discusses the feasibility and necessity of adopting the activity-based costing method in the cost accounting of A decoration and decoration company,and then introduces the activity in the process of cost accounting of A decoration and decoration company.Cost method,and analyze and compare the differences between project-based costing and activity-based costing.Through the implementation of Activity-Based Costing in cost accounting,it strengthens the idea of enterprise cost management,enriches the cost information of enterprises,improves the accuracy of cost accounting,and strengthens the ability of cost control.At the same time,it emphasizes to grasp the development trend of information computerization,and ultimately achieve the goal of enhancing competitiveness andwinning market for enterprises.