Research On The Application Of Value Chain Activity-based Costing In Shenhengsheng Building Decoration Company

In recent years,China has put forward the integration of urban and rural areas,the goals of the 13 th five-year plan and the economic policies of high-quality economic development pointed out in the fourth plenary session of the 19 th central committee,which have promoted the development and opportunities of construction enterprises.At present,the development of China's construction industry market has changed from the original model of explosive growth to the model of refined growth.However,the rising price of upstream raw materials and the adjustment strategy of the government to the real estate in the downstream market undoubtedly bring huge cost pressure to the housing construction enterprises in the “sandwich”position.If the construction enterprise wants to stand firm in this kind of environment,it is an important work to improve the enterprise cost management level.In the construction industry,building decoration is an industry with a large proportion of labor,high labor intensity and low automation level.In particular,small and medium-sized enterprises hope to keep their cost advantages in the market competition and get rid of the cost pressure.At this time,scientific,reasonable and effective cost management method is very necessary.Therefore,combined with the construction characteristics of architectural decoration enterprises,this paper establishes the application research of value chain activity-based costing in shenhengsheng architectural decoration engineering company.This paper takes activity-based cost of value chain as the research object,takes shenhengsheng architectural decoration company as the research object,and conducts the application design research on it with the methods of literature research,field research and expert interview.Firstly,the current situation of cost management in shenhengsheng company is analyzed and the industry characteristics of the company are investigated and interviewed.The author finds that the company currently conducts project cost management based on the traditional cost method,and the cost control measures are mainly concentrated in the project construction process,and the concept of cost management is relatively backward.In view of the disadvantages of its cost management and its construction characteristics,the author constructs the application process of activity-based costing in the case company based on the strategic thinking of value chain.External value chain,this paper respectively from three aspects,suppliers,customers,competitors which will focus on supplier classify as 12,as the distribution of the homework cost object,and then summarize the indirect costs of purchasing,purchasing list is used to determine the amount of cost drivers to calculate the actual cost on various sourcing supplier,at the same time,considering the quality cost,the author has also established according to the characteristics of the supplier evaluation system;Internal value chain,according to the project construction process,the author based on WBS divides the 32 major assignment,follow the principle of cost effectiveness,to organize it into 18 operations center,and then combined with the expert experience and using the analytic hierarchystructure model to judge the degree of importance of each factor to calculate the corresponding numerical matrix,the representative agent to select a reasonable cost.Engineering as a representative of the application,the author selected the paint over with wood oil resources in some detail the collection and establish the homework cost pools,based on project allocation rate of cost drivers for the allocation of resources,and calculate the paint over with wood oil engineering under each subdivisional work fine operating cost data,thus the value chain operation cost data and cost data of the case company's original cost accounting methods difference comparative analysis,found that the traditional cost accounting method in the process of high yield and low complex component artificially high engineering cost,at the same time will be less meter item of low yield and difficult process of engineering cost.Then the author analyzes and evaluates the application effect,starting with activity-added analysis,accounting difference analysis,supplier decision analysis,pricing decision analysis,customer decision analysis and other aspects,and finally proposes the implementation of the value chain activity-based cost method to safeguard measures.It is concluded that the accurate cost data accounting under the value chain activity-based costing method indicates that activity-based costing method is not only applicable in the manufacturing industry,but also feasible and necessary to implement in the building decoration industry where the sub-projects are diverse and complicated,the construction activities and the indirect costs account for a high proportion.The application of activity-based costing of value chain has a positive effect on the decision-making of enterprise managers,and promotes the progress of enterprise cost control towards comprehensive,refined and scientific direction,so as to enhance enterprise value.Finally,the author hopes to make use of this research to improve the awareness of the importance of the cost of non-productive expenditures and make more exploration on the application of activity-based costing in the accounting of non-productive expenditures by combining with the value chain thinking.In addition,it is hoped that in solving the cost benefit problem,it can provide the application precedent and value reference for the implementation of activity-based costing.