Research On The Application Of Target-Activity Based Costing Method In The Cost Management Of X Engineering Project

As an important part of the real industry,the construction engineering industry is related to the development of social economy and occupies an important position in the modern economy of China.Due to the special nature of the construction engineering industry,the investment is large and the return is small and the return cycle is long,and the cost accounts for too large a proportion of the total capital and ignores the allocation of indirect costs to become a prominent problem of the whole industry.In the engineering projects under EPC mode,the projects are usually undertaken by bidding,and due to the lack of accurate project data information support and scientific cost prediction in the bidding quotation,the contractors rely on the single-mindedly low cost to obtain the projects.Since contractors cannot clearly evaluate the cost of each project,they consider whether to undertake the project from the perspective of quotation,and thus ignore the correlation between cost and profit.Cost management in the project cycle cannot fully adapt to the whole project progress,lack of scientific decision-making,and difficulty in adjusting and optimizing costs,so many enterprises are faced with serious waste and even on the verge of bankruptcy.Building construction enterprises need to establish modern cost management concepts,develop scientific cost control methods,make reasonable estimates of costs from the source and form a closed loop of cost management,so that enterprises can occupy a favorable position in the bidding process.Being able to reasonably control costs in the construction process,further optimize costs in the cost assessment and realize the whole process of cost management and control,which has become an important development direction for engineering projects and enterprises.This paper takes X project of Y construction company as the research object,through a lot of literature reading and fieldwork,to understand the problems in cost control of the project,analyze the problems,propose the cost management mode of combining target cost and job cost,and further confirm that the integration of target cost method and job cost method is necessary and feasible in the construction EPC project.This paper divides the cost operation centers of project X under the EPC model,determines the cost drivers of each operation center,identifies the cost elements associated with them,constructs a fusion model and performs calculation and analysis.Combining target cost and using job cost to adjust and improve target cost,we analyze the data differences between target cost and job cost,clarify the main problems,and improve cost control methods accordingly.Combine both theory and practice to manage and control the cost of X project under EPC mode in the whole process of before the fact,at the fact and after the fact.Finally,the shortcomings are summarized according to the results of this study,and the future is also prospected,hoping that this paper can provide some support for future related research.