Call For Paper Volume:4 Issue:10 Oct'2017 |

Comparative analysis between activities based costing and conventional costing method applicable to construction industry

Publication Date : 10/07/2015



Author(s) :

Avinash D. Awad , Dr.Ushadevi Patil.


Conference Name :
4th International Conference on Recent Trends in Engineering & Technology(ICRTET-2015) July 2-4,2015 Organized by SNJB's KBJ College of Engineering,Chandwad,Nashik,Maharashtra,India



Abstract :

In construction industry Conventional costing method and activity based costing method is used for cost calculation. In this paper cost calculation of residential building is done by using activity based method is nothing but actual cost calculat method is nothing but estimated cost calculation method. Also gives the importance, limitations of ABC method over the conventional costing method, where the use of conventional method over runs the cost of product due to consid method can be considered as an alternative paradigm to traditional cost systems. The main aim of this paper is to give the relationship between actual cost and estimated cost from which comparison between activity based method and conventional method is done on the basis of result. This obtained result Keywords-activity based costing; conventional costing; Now a day in global computation to increase profitability accurate cost estimat important. Mainly two methods conventional costing method. Contractor for preparing the construction cost estimate. In cost estimation there are two important steps used quantity estimation and précising. The main goal of ABC system to calculate the direct cost of work. If cost is calculated to a particular wo direct cost of the product. In conventional costing system, cost is calculated through labor hour, machine hours etc., But in Activity require for completion of particular work is determined and its costs are work. ABC tries to ascertain the factors that cause each major activity, cost of such activities and the relationship between activities and work produced. 1. Objectives The main objectives of this study include the following. 1) To study the activity based method and conventional method. 2) Compare the cost estimation by both the method. 3) Give the suitability of method for cost estimation. 2.1 Activity based costing method ABC method is the most accurate and actual cost estimation method. It traces the cost through activity performed. It classifies activity in to value added and non activity and eliminate the non completion of each work require no of activity such as engineering, purchasing, services in Engineering and Research www.ijmter.com -ISSN No.:2349-9745, Date: 2-4 July, 2015 s 1,Dr.Ushadevi Patil2 ,Dr. D.Y.Patil Institute of Engineering and Technology,Ambi, Pune, INDIA,avi.awad@gmail.com INDIA,patilushadevi.civil@gmail.com calculation method and conventional consideration of single volume unit. So activity based costing cost-based accounting ich is shown by bar chart.


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