Research On The Application Of Activity-based Costing To The M Coal Mine Of The Datong Coal Mine Group Co.Ltd

As a large energy country,China is especially rich in coal resources.According to statistics,in recent years,the output of coal is greater than the actual demand,which makes the price of coal be falling and the coal market be sluggish.And due to the 19 th National People’s Congress introduced a series of policy regulation,the coal market are getting warming.However,coal companies are still facing a very serious situation.On the one hand,with the rapid development of science and technology,mechanized operation and intelligent management are increasingly widely used in the coal industry,and the proportion of indirect costs in the cost of coal products is also increasing.This makes the indirect cost higher and the enterprise internal control is not ideal,these make the realization of enterprise cost management is not conducive.So the traditional cost accounting and control model has been unable to adapt to the modern coal enterprise product cost accounting.On the other hand,coal enterprises have a high degree of product homogeneity.So it is unrealistic to seek the development mode of differentiation strategy.In this condition,to maintain the cost leadership is the key to the industry leader.So we can find the cost management is crucial to coal enterprises.M Coal Mine is a branch of the Datong Coal Mine Group Co.Ltd.It has a high level of production mechanization and automation,and its coal products have a high degree of homogeneity.However,M Coal Mine still use the traditional cost accounting method,and the cost accounting results are inaccurate.These are many problem,like the cost distortion and imperfect system of the cost control.As an advanced management method,activity-based costing has significant advantages in cost accounting.This paper attempts to introduce the activity-based costing method into M coal mine for accounting and cost control,so as to improve the cost management of coal mine and enhance the comprehensive competitiveness of coal mine.Taking the M Coal Mine of the Datong Coal Mine Group Co.Ltd as the research object,this paper mainly uses a variety of research methods.According to M Coal Mine’s actual situation,this paper plans to use activity-based costing method into M Coal Mine.In the research,first of all,this paper describes the research background,research significance,research content and method,and analysis of the coal industry cost management status.Then the basic principles and accounting procedures of activity-based costing are summarized,and compare to and analyze the activity-based costing and traditional costing.In the M Coal Mine’s background analysis,there are two designs of M Coal Mine.One is the cost accounting and another is cost control.Then,use the productive and financial data of M Coal Mine in April 2017 by activity-based costing,and analyze the differences between the results obtained and the accounting data under the traditional costing method are compared and analyzed.After that,the value-added analysis of the activities will be carried out to improve or eliminate the non-value-added activities,so as to achieve the purpose of cost control.Through analysis,it is concluded that the application of activity-based costing can have a positive impact on the production management and comprehensive management of M Coal Mine.For example,it solves the problem of unreasonable cost distribution of coal products under the traditional cost method in M Coal Mine,and provides accurate cost information.In this way,the quality of cost accounting is improved and cost control is better implemented to help managers make accurate production and management decisions.Finally,this paper puts forward some suggestions on implementing activity-based costing in M Coal Mine of the Datong Coal Mine Group Co.Ltd.