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Received: 2024-11-11 | Accepted: 2025-03-27 | Published: 2025-06-30

Title

Cost calculations in the construction sector: evidence from the Slovak Republic and the Czech Republic

Abstract

Ensuring the company's competitiveness in globalised economies requires a dynamic (flexible) costing system. The objective of this paper is to evaluate the use of costing methods in businesses in the construction industry, to identify the degree of use of the Activity Based Costing (ABC) method in practice, to evaluate the appropriateness of costing methods for use in businesses in the construction sector and to make recommendations. For analysis, we used the Chi-squared test, the Chi-squared data distribution test, the Wilcoxon paired test and the Mann-Whitney U-test. Using analysis, we found that 36.7% of all the studied businesses use the ABC method. We quantified the level of doubt among managers about the suitability of the ABC method for construction companies. Through analysis, we found that managers of construction companies are mainly concerned that project implementation would be highly time-consuming. Management's doubts about the project's contribution to the business are a less compelling reason for not using ABC in practice. Managers of companies operating in Slovakia are more convinced of the unsuitability of this method for their company than companies operating in the Czech Republic. In conclusion, we make a recommendation for practice in construction companies; we recommend implementing the ABC method, especially in medium-sized enterprises. The analysis was carried out in the Slovak and Czech Republics. However, the analytical conclusions can also be applied in other European countries, especially countries with a similar history, a similar type and state of the economy, and a similar mentality of managers and people

Keywords

activity-based costing (ABC), margin-based costing, construction sector

JEL classifications

M21 , M41

URI

http://jssidoi.org/jesi/article/1297

DOI

DOI 10.9770/d8638347424

Pages

10-24

Funding

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Stašová, Lenka Hudáková

Technical University of Košice, Košice, Slovakia http://www.tuke.sk

Articles by this author in: CrossRef | Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

Number

Issue date

June 2025

Issue DOI

DOI 10.9770/w3938556955

ISSN

ISSN 2345-0282 (online)

Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Article views & downloads

HTML views: 1669 | PDF downloads: 845

References

Al Amri, T., & Marey-Perez, M. (2020). Towards a sustainable construction industry: Delays and cost overrun causes in construction projects of Oman. Journal of Project Management, 5(2), 87-102. http://doi.org/10.5267/j.jpm.2020.1.001