Research On Cost Control Of Geological Prospecting Enterprise

China has entered a high degree of industrialization development stage. From 2003 to the next 20-30 years, China will be in great demand for mineral resources. Although the territory is vast in China and there are still a lot of places to be explored, in recent years, few breakthroughs are made in the geological prospecting field, the speed of the reserves consumption is faster than the reserves growth, the newly discovered mineral deposits tend to decrease, the pressure of resources keeps high, the protecting level of resources declines and especially the cost of geological prospecting has been high. The cost control and cost management plays an important role in finance management. Taking the particularity of cost programs into consideration, the method of cost is corresponding complex. Based on this, how to improve cost control in the geological prospecting enterprises becomes a major problem.Under the conditions of the socialist market economy, in order to achieve the sustainable, stable and healthy development of geological prospecting industry in China, and to ensure the coordination between the supply of mineral resources and the economic construction and social development in China, according to SCS [1999] 37 and the provisions of "State Council’s decision on strengthening geological work", National Development (2006,4), state geological work should be clearly separated as public service and commercial work, and the previous two ways should be operated separately and managed at different levels. Since then, China’s mineral geological exploration work has thus entered a new period of market management, and developed into the market-oriented operation stage.Under this background, to strengthen the cost accounting in geological prospecting enterprises, the geological work in public service and commercial geological work should be treaded differently and worked in corresponding systems. The investment in public service is mainly from central finance, and for the commercial geological work, as this system runs in commercial markets, the units have already implemented their own decisions, profits and losses. Compared with the public service, to strength the geological work in commercial domain is more difficult.This paper is divided into seven chapters:introduction, an overview of cost and cost control in the geological prospecting enterprises, the relationship between cost control and cost accounting, the status and problems of cost control in F company, how to improve the cost control system in geological prospecting enterprises and the conclusion.The first chapter introduces the purpose and significance of cost control in geological prospecting enterprises, and points out the actual meaning of cost control research in geological prospecting enterprises, combined with the contents and purpose of this paper.The second chapter analyzes the concept of cost, the concept of geological prospecting cost, the content of cost control and geological prospecting cost. By the way, this part analyzes the characteristics of cost control in geological prospecting. The characteristics includes:relativity, decentrality and ambiguity. Chapter III analyzes the relationship between cost control and cost accounting, and points out the cost accounting, fundamentally speaking, is a control system under the background of scarce resources and a dynamic human system to carry out cost control and reduction.Chapter IV takes F company for example, analyzes the status and drawbacks of cost accounting, and studies the importance and necessity in cost accounting. Chapter V analyzes the status and problems of cost control in geological prospecting enterprises, and research on how to improve the cost control system in geological prospecting enterprises.Chapter VI draws the conclusion and points out the innovations and shortcomings of this paper.This paper takes F company for example, researched on the cost control and accounting method of geological prospecting enterprises. The main contributions are as follows. This paper analyzes the cost composition and problems in cost accounting and control, with F company as an example. Meanwhile. according to the existed problems, this paper puts forward the solution of improving the cost accounting in geological prospecting enterprises and makes some reasonable suggestions. Firstly, focus on the aspects in cost control. Secondly, establish the system of cost control. Thirdly, clarify the necessary principles in cost control system. Although this paper points out some reasonable views, there are still some shortcomings. For instance, how to analyze the geological prospecting enterprises cost in theory and do the research from the macro aspect, still needs further study.