Activity-based Costing Research On Cost Control Of Shanty Area Reconstruction Project Of China Railway A Bureau

During the "14th Five-Year Plan" period,it was proposed that economic and social development should be based on the promotion of high-quality development.This means that my country’s economy has shifted from a stage of rapid growth to a stage of high-quality development.Environmental bottlenecks are the inevitable choice to achieve higher quality,more efficient,fairer and more sustainable development.If an enterprise wants to remain invincible in the fierce competition,the top priority is to optimize the management model,effectively control costs,and enhance economic benefits.The construction industry,which occupies a pillar position in the national economy,has not been able to rest assured.The innovation and wide application of advanced manufacturing technologies have to prompt the construction industry to change traditional production methods,reduce direct labor costs,and increase indirect costs in overall resources.With regard to the proportion of the configuration,the traditional cost method is incapable of facing this challenge.As my country’s construction projects have the characteristics of large investment,long period,cumbersome process,and multi-department joint construction,traditional costing methods can only use the final results as the cost management object,which cannot meet the needs of development.therefore.Activity-based costing came into being,which coincided with the changes in the current situation,and set off a wave of reforms in cost control in my country’s construction industry.Activity-based costing meets the needs of high-quality development,encourages staff to actively participate in cost management,and requires dynamic monitoring of the entire construction process to facilitate the realization of a self-optimized cost system.This article discusses the necessity of activity-based costing in the construction industry through the study of domestic and foreign literature,and puts forward the research ideas and innovations of cost control based on activity-based costing.Then it expounds the related concepts and theoretical basis of activity-based costing,and analyzes and contrasts the differences between traditional costing and activity-based costing.The specific application of activity-based costing in practice takes the shantytown renovation project of Bureau A of China Railway as an example to launch an investigation and study on the cost control of the project.And design questionnaires,carry out targeted research on shantytown renovation projects,and propose optimization measures.This leads to a conclusion that once again confirms the necessity of using activity-based costing in construction projects.Based on the collected cost data of shantytown renovation projects,construct an activity-based cost control model,determine resources,identify operations,select cost drivers,establish a cost database,and use activity-based costing to allocate indirect costs to each operation center in a scientific and reasonable manner.A more accurate cost calculation result.Analyzing the accounting results of the activity-based costing method,we can find that the traditional costing method will cause the cost to be overestimated or underestimated,leading to distortion of accounting information.It puts forward the guarantee for the implementation of the activity-based costing method,so that the activity-based costing method can play a greater role in cost control.