Research On Cost Accounting Improvement Of Changda Construction Company Based On Activity-based Costing Method

The construction industry is a very important industry in China,which has a large contribution to China’s GDP.The construction industry is in a stage of rapid development.The current competition in the construction industry in China is getting deeper because of the supply and demand relationship of the construction industry market.The tight supply and demand relationship leads to deeper competition and contradictions among enterprises.The inclination of the supply and demand relationship makes construction companies can only obtain the project by lowering their bid price.But it will damage the economic interests and profit of the enterprise.At present,the management level of China’s construction industry has been greatly improved in terms of quality and safety,and construction companies cannot close the gap in terms of quality and safety.This poses new challenges for enterprises’ cost accounting and cost management.The accuracy of cost accounting and effectiveness of cost management will become the main factors for construction companies to increase their core competitiveness.The emergence of activity-based costing has brought new accounting ideas and management concepts for enterprises’ cost accounting and cost control.This article selects the Changda Construction company as the research object and the Laojun Avenue project as the research case.First,the theoretical basis and related concepts of activity-based costing are used as the research basis to gain a deep understanding of the accounting method of construction companies.Method,and then describe the current cost accounting status of the Changda Company;Based on the industry characteristics of the construction industry and the current development of the Changda Company,first of all,it analyzes the necessity of applying activity-based costing in Changda Company based on its actual situation.Then it elaborates and analyzes the feasibility of its implementation in Hunan Changda Construction Group Stock.It can lay the foundation for the cost accounting design and application of activity-based costing for the Laojun Avenue municipal project.It compares the cost data of Laojun Avenue project calculated under the traditional cost method with that calculated under activity-based costing,and then analyzes the cost gap,In the end it draws the conclusions of the case analysis and put forward the shortcomings of this thesis and the outlook for the future.I hope that the research can provide a new idea and a new method for the management of Hunan Changda Construction Group Stock to enhance the company’s cost accounting ability and establish a cost management system.And it can provide some references for the construction industry to apply activity-based costing,as well as reduce costs and increase efficiency and improve cost management capability.