| Title |
Application of Activity-Based Costing(ABC) for Modular Building Construction Indirect Costs Calculation at the Manufacturing Stage |
| Authors |
Lee, JeongHoon ; Park, Moonseo ; Lee, Hyun-Soo ; Lee, Kwang-Pyo ; Hyun, Hosang |
| DOI |
http://dx.doi.org/10.6106/KJCEM.2015.16.4.139 |
| Keywords |
Modular Building Construction ; Manufacturing ; Indirect Costs ; Activity-Based Costing(ABC) |
| Abstract |
Modular construction is combined with manufacturing production process and conventional construction industry technique. Considering characteristic of modular construction production process, manufacturing facilities require indirect costs for utilities, equipment, and overall maintenance, which can affect modular units pricing. However, current modular construction cost classification is inadvertent to reflect the manufacturing overhead costs, because it is generally added as a percentage to sum of labor, material and equipment as it called in single cost pool used. This process is easy to estimate the total construction cost at the project starting points, but it brings on misunderstanding of project profit estimations by “cross subsidization phenomenon”. To prevent this situation, in this research aims to provide modular construction overhead cost handling process at the detailed indirect cost calculation for manufacturing stage using Activity-Based Costing as one of the powerful method for overhead costs estimation and allocation. Using this research results, modular construction cost estimators have more detailed cost information of modular units and prevent to misallocate indirect costs. Also, it can be utilized to aid the understanding of the company’ s profit structure. |