【文章內(nèi)容簡介】 ned Value Concept. The essence of these factors was widely discussed by many researchers. It is well accepted that these factors must be appropriately employed as a critical frame for cost control system. With wellestablished framework, management can systematically manage the project in small manageable fashion and will not be overwhelmed by information explosion during construction phase. A pattern of proper cost control framework is illustrated Work breakdown structureA taskoriented family tree of activities widely known as WBS is indispensable for project cost control. Unemployment or improper design of this structure can cause a chain of deficiencies in all cost control functions. Commencing with estimating and budgeting, work items may be duplicated, overlooked, or shelter inadequate details. This ineffective control reference, therefore, cannot be served as a guideline for systematic monitoring as well as prehensive analysing. Finally, an evaluation of project oute and establishment of historical cost data can also be ineffective.Systematic structure The project must be partitioned into manageable elements of work for which budgets and expenditures can be systematically controlled. Formation of the WBS must begin by subdividing, or partitioning the project objective into successively smaller work elements until the lowest level to be reported on or controlled is reached.Compliance with accounting codeWhen an accounting system is integrated within the cost control system, not only data processing can be substantially speeded up but also many frauds can be avoided. For instance, the account payable checking system can directly verify whether invoices of each work item are still underbudget and should be paid or not. Furthermore, account reports generated at head office and job cost reports generated at site can be crosschecked for ensuring accuracy.Cost statusIf the pany employs the earned value concept, cost status at a given progress can be identified. The cost status can be defined as Cost status = earned value — total actual expenditure used to acplish a given earned progress。 when (Positive value = underrun, negative value = overrun), and Earned value = budget unit price x actual quantity in place By identifying the cost status, management gains an insight on whether and how much, at a given progress, the total actual expenditure of each item has been over or under the established budget. At a given progress, the cost status can be identified before the finishing of the work item so that timely proper corrective actions can be taken before being too late. Significantly, an effective report format should contain both: (1) parison among actual quantity in place or percent progress, budget and total actual expenditure that is used to acplish the earned progress, and (2) calculated earned value and cost status. Cost control functions Referring to the previous part, the assessment of the control framework probably enables the author to summarize effectiveness as well as deficiencies of each audited system. However, to acquire more confidence and a richer picture, assessment of each control function has to be taken into account. Subjected to research constraints, efforts spent in this section did not try to cope with all excessive detail in real practices, yet it valuably covers all critical aspects.This part broke down into seven subsections consisting of one supported function estimating and six functions for cost control budgeting, monitoring, analysing, reporting, corrective action, and postevaluating. The cost control function breakdown struc