International Journal of Advances in Management and Economics (IJAME)

ISSN:2278-3369
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TitleBuilding Cost Management: Case Study Using Costing Methods
AuthorDonin Christian
AbstractThere have been many significant changes in the construction sector recently: it is highly competitive market. In order to adapt to the new environment, it is important to improve the effectiveness of management for improved performance. Within the context, the objective of this analysis is to create a management tool according to the construction industry characteristics, specifically for buildings construction through the application of costing methods - Activity-based Costing, Production Effort Unit Method, Absorption Costing and Marginal Costing. This paper introduces the concept and defines steps within costing methods application, as well as proposing adaptation in order to apply them for construction and discussing the analysis of methods. Finally, after practical application based on case study, this paper provides as result, Activity-based costing and Marginal methods are appropriate for the application proposed.
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