Activity based costing for construction companies / Yong-Woo Kim.

Format:

Book

Author/Creator:

Kim, Yong-Woo, 1972- author.

Series:

THEi Wiley ebooks.

THEi Wiley ebooks

Language:

English

Subjects (All):

Construction industry--Accounting.

Construction industry.

Activity-based costing.

Physical Description:

1 online resource (180 pages) : illustrations

Edition:

First edition.

Place of Publication:

Chichester, UK ; Hoboken, NJ : John Wiley & Sons, 2017.

System Details:

Access using campus network via VPN at home (THEi Users Only).

Summary:

Activity Based Cotsting for Construction Companies provides guidelines on how overhead costs can be managed for using Activity Based Costing (ABC), providing gains in contractor competiveness. Illustrated with a range of case studies and examples it alsopresents a map that shows construction contractors how to implement ABC to calculate overhead costs accurately, identifying non or low-value added operations which can then be improved.

Contents:

Intro

Title Page

Copyright Page

Contents

Preface

Chapter 1 Introduction

1.1 What comprises costs in a construction company?

1.1.1 Construction costs (project costs)

1.1.2 Overhead costs in a construction company

1.1.3 The cost classification in use and the duality of overhead costs

1.2 Overhead costs in new business environments

1.3 Role of overhead cost management

1.3.1 Overhead costing system should provide accurate costing on cost objects

1.3.2 Overhead costing system should contribute to reducing total costs without sacrificing value

1.4 Structure of this book

References

Chapter 2 What Is Activity-Based Costing?

2.1 Traditional accounting method: resource-based costing with volume-based allocation

2.1.1 Resource-based costing

2.1.2 Overhead costs allocation

2.2 What are the problems with the current method?

2.2.1 Is the current method contributing to reducing total costs?

2.2.2 Does the current method provide accurate pricing?

2.3 What is activity-based costing?

2.3.1 Definition

2.3.2 Characteristics of ABC

2.3.3 Objectives of ABC system

2.4 Implementing activity-based costing

2.4.1 Develop an activity-based costing charter

2.4.2 Define cost objects

2.4.3 Identify activities

2.4.4 Assign resource costs to activities

2.4.5 Assign activity costs to cost objects

2.5 Chapter summary

Chapter 3 Managing Overhead Costs in Construction Projects

3.1 Project overhead costs as profit points

3.2 Implementing ABC to manage project overhead costs

3.3 Case study: xx Commercial Complex

3.3.1 Developing an activity-based costing charter

3.3.2 Workshop

3.3.3 Defining cost objects

3.3.4 Identifying activities

3.3.5 Assigning resource costs to activities

3.3.6 Assigning activity costs to cost objects.

3.4 Using ABC data for managerial purposes

3.4.1 Evaluating management areas with activity analysis

3.4.2 Evaluating subcontractors

3.5 Chapter summary

Chapter 4 Managing Your General Overhead Costs

4.1 General overhead costs

4.2 Managing general overhead costs

4.2.1 Accurate general overhead allocation

4.2.2 Providing a process view for process improvements

4.3 Does current practice for managing general overhead costs work?

4.3.1 Resource-based costing

4.3.2 Volume-based assignment

4.4 How can ABC be implemented in managing general overhead costs?

4.4.1 Case study: xx Construction (general contractor)

4.5 How can ABC data be used in managing general overhead costs?

4.5.1 Cost driver analysis

4.5.2 Profitability analysis for each project

4.5.3 Profitability analysis for each market sector

4.5.4 Profitability analysis for each customer

4.6 Chapter summary

Chapter 5 Managing Overhead Costs in a Fabrication Shop

5.1 Rebar supply system

5.2 Case study: PQR Construction Inc.

5.2.1 The rebar fabrication shop's cost structure

5.2.2 Allocation of rebar fabrication shop's costs to projects

5.3 Analysis using traditional rebar costs allocation

5.3.1 Identify cost objects and direct costs

5.3.2 Identify the overhead costs to be allocated and calculate the allocation base

5.3.3 Calculate the overhead costs allocated to each project

5.4 Analysis using activity-based costing

5.4.1 Determining system objectives and defining cost objects

5.4.2 Identifying resources and activities

5.4.3 Assigning resource costs to activities

5.4.4 Determining a cost driver for each activity

5.4.5 Calculating a unit rate of activity costs (cost driver rate) and allocating activity costs to cost objects.

5.5 How can ABC data be used for managerial purposes?

5.5.1 Accurate cost information through overhead cost allocation

5.5.2 Cost information on processes

5.5.3 Cost driver analysis

5.5.4 Ways to reduce overhead costs

5.6 Chapter summary

Chapter 6 Activity-Based Costing in Your Organization

6.1 The benefits of the ABC journey

6.2 Implementation roadmap for ABC

6.2.1 Concept-level roadmap

6.2.2 Implementation roadmap for a focused application

6.2.3 Phase 1. Planning stage: preparing for your ABC journey

6.2.4 Phase 2. Execution stage: developing your ABC system

6.2.5 Phase 3. Internalization stage: final tune-up

6.3 Common mistakes in the journey

6.3.1 Beginning your ABC journey without strong commitment from top management

6.3.2 Beginning your journey with poorly defined objectives and scope

6.3.3 Developing a task force that does not have the necessary authority

6.3.4 Developing more cost objects than needed

6.3.5 Making activities ambiguous

6.3.6 The effect of distorted time-effort % assigned to activities

6.3.7 Choosing cost drivers that are hard to measure

Index

EULA.

Notes:

Includes bibliographical references and index.

Description based on print version record.

ISBN:

9781119194699

1119194695

9781119194682

1119194687

9781119194705

1119194709

OCLC:

968926359