CONSTRUCTION EXPENSE ACCOUNTING FOR HOUSING FIRMS Ghulam Mujtaba 1 and Irfan Manarvi 2 1. Corresponding Author. MS student, Department of Civil Engineering, Capital University of Science and Technology, Islamabad, Pakistan. Email: Ghulammujtaba8089@gmail.com. 2. Professor, Department of Civil Engineering, Capital University of Science and Technology, Islamabad, Pakistan. Email: irfanmanarvi@cust.edu.pk. Abstract Cost accounting performs an essential function in the execution of any project size, it is a specialized accounting division that includes classifies, calculation, distribution and control cost. The construction industry has grown from a few men's jobs to massive ten thousand workers ' enterprises, with complicated management systems. The dimension of cost accounting was highly focused on this direction of evolution. It is determined that the most reason for ineffective accounting is that performing antisystematic corporate activity, behavior will absorb the resources and end up with additional corporate prices. It is impossible to track the cost event and it is impractical to implement the solution. In order to make the project cost management process useful for housing construction companies this study implemented four different conceptual document process systems for contract-based work, wage payments, performance payment, procurement. A pilot study business enterprise changed into investigated into research the develop modules for feasibility of it.[1] Key words: Cost accounting, cost management process, cost management system Introduction 1.1 Background It involves to building, infrastructure projects are becoming more and more complex with the goal of attaining highest performance at the inexpensive possible cost. The purpose of the study is to establish conceptual analysis systems of the most essential areas in a construction that will have a significantly greater influence from cost accounting principles on the financial statements. The project accounting is the main tool in use by the managerial level to track costs and improve the income of a business, and to set up for the long term of the business, what will happen in the future, in which section, however, it'll have an impact on the company's money standing.