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

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