Applying activity-based costing in managing the projects of a construction company: a case study of JDG Rakennus Oy in a project with a private client Phi&Phi Oy.
Tran, Phuong Uyen Jr (2020)
Tran, Phuong Uyen Jr
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020052814870
https://urn.fi/URN:NBN:fi:amk-2020052814870
Tiivistelmä
While most contractors are more familiar with technical and mechanical work in the field, they are recommended not to underestimate and eliminate management accounting tasks. Otherwise, they may face poor performance in cash flow and lack reliable data to deliver proper decisions. This thesis is created to optimize the costs in a construction project by applying activity-based costing.
The concept of activity-based costing is a key knowledge base of the thesis. From studying how such a concept can resolve problems in traditional costing methods, the author devel-ops a costing implementation plan that adds value to construction projects. The results generated are utilized for project management purposes in the case company.
A qualitative method was chosen as the research method and case study as the research strategy. Data was collected through semi-structured interviews and analyzed using a the-matic method. The thesis is project-based, and its result is a user-friendly guideline to build an activity-based costing system in a small construction project. The guideline is illustrated and tested through practical data of the case company JDG Rakennus Oy in a project with a private client Phi&Phi Oy.
The insights received from applying the new costing procedure in the guideline can help the case company to evaluate cost performance in each management area and estimate a better budget for future projects.
The concept of activity-based costing is a key knowledge base of the thesis. From studying how such a concept can resolve problems in traditional costing methods, the author devel-ops a costing implementation plan that adds value to construction projects. The results generated are utilized for project management purposes in the case company.
A qualitative method was chosen as the research method and case study as the research strategy. Data was collected through semi-structured interviews and analyzed using a the-matic method. The thesis is project-based, and its result is a user-friendly guideline to build an activity-based costing system in a small construction project. The guideline is illustrated and tested through practical data of the case company JDG Rakennus Oy in a project with a private client Phi&Phi Oy.
The insights received from applying the new costing procedure in the guideline can help the case company to evaluate cost performance in each management area and estimate a better budget for future projects.