A Study On Project Cost Control Of SS Real Estate Company Based On Activity-Based Costing

In China,the real estate industry has always been an important pillar industry in our country and also occupies a very high position in the economic development in our country.As the real estate market becomes more saturated,the real estate market no longer means high profits.With the gradual decline in profits,many major companies are actively looking for effective ways to reduce costs.Therefore,in order to promote competitive advantages,the accurate accounting of costs and effective cost control become particularly important.At present,many companies use the traditional cost accounting method to calculate the real estate cost.The traditional cost accounting method mainly allocates the indirect costs based on quantities,which will cause not only the overestimate or the underestimate of the cost,but also can't effectively control the cost.Thus,a new way is necessary to be introduced into real estate industry,to make the cost accurately calculated and the company's profitability improved.The process of activity-based costing is based on activity,and the indirect cost is also seen as the cost of service-consuming operations,which broadens the scope of the calculated cost,in order to improve the accuracy of the cost.Besides,the process of activity-based costing matches real estate companies' operating procedures.The advantage of activity-based costing is that it can find the product driving factors and trace the root causes of those factors and bring them into each specific operation.In this way,the limited resources of the real estate company can obtain reasonable disposition and achieve the highest level of cost control.This article takes SS Real Estate Company(SS)as an example and finds that the data calculated by the traditional cost accounting method will cause many problems.The existence of these problems is not good for the development of SS Real Estate Company,and it can not meet the requirements of contemporary social development,and can not achieve the expected goals of managers.This article hopes that the system based on activity-based costing method can solve SS Real Estate Company's dilemma,provides complete and accurate cost information for the company,helps the managers to make the right decision for the development of the company.Besides,the SS real estate company can reduce the waste of resources in order to achieve project cost control.The introduction of activity-based costing helps SS Real Estate Company reduce company costs and improve the company's profitability,and hopes this measure can also be regarded as a quotable experience to other real estate companies.