The Purpose Of Activity-Based Decisioning At GY Construction Company

846 Words 4 Pages
1 Purpose of Activity-Based Costing
To investigate some of the activities within a company’s department, we chose a department that we are interested in within GLY Construction Company, assess some of its activities, and provide a definition for each activity. Further, we create our cost driver table for each activity. Once activity-based costing system is employed, we determine how a construction contractor develops it and the expected benefits when it is employed.
However, we need to provide few definitions of activity-based costing system costs associated in order to give readers a deep insight of what this report is about. Further, explaining the purpose of activity-based costing is essential before presenting a cost drivers table.
This paper provides the
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Nevertheless, looking at previous projects helps on obtaining the relevant historical costs.

2- Assembling project estimates:
The process of providing complete estimates at all types of the design process: conceptual design, schematic design, design development and guaranteed maximum price estimates.

3- Working with design teams/owner on preconstruction:
The act of collaboration that helps the owner and design team to make decisions based upon costs, schedule, material types, and other information.

Since GLY construction seeks the transparency with all of their clients, we found that they do not use neither activity-based costing system nor cost driver on each activity. For this reason, we decided to create our own cost driver table and add more activities to show how cost drivers are used. The following are some of the activities that can be performed within the estimating department:
1. Number of Cad hours
2. Number of Bluebeam hours
3. Number of quantity-take off sheets
4. Number of inspections
5. Number of requests

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