The Study On Coal Enterprises’ Cost Control Under Activity-Based Budgeting

Costing management is the eternal theme of enterprises survival anddevelopment. In the modern enterprise management, the comprehensive budgetmanagement is closely linked to the costing management. The overall budgetingmanagement provide strategic support for costing management, and also examines thepros and cons of costing management; The final results of the costing managementwas benefit for adjusting business goals amendments to the budget guidelines.Coal as China’s main source of energy, It’s budgeting management and costcontrol are greater specificity and more difficult maneuverability than the generalindustry. For coal enterprises, accurate calculation and control costs is very important.At present, the cost control methods of coal companies include the overall budgetcontrol law, the responsibility and cost method etc. This paper is to establish a newbudget management methods on the basis of the overall budget control.In this paper, we raise questions, do theoretical research and study on the to thestatus quo and future development of cost control of coal enterprises. Proposed coalenterprises should implement the budget control of operating costs (Activity-BasedBudgeting, ABB’s for short). Overall budget management method and the operatingcost method integration. Link to on-site production operations for the control ofbudget targets in accordance with the job content decomposition. Processes betweenthe process control to improve the quality of work and improve labor efficiency,reduce resource consumption. Ensure that budget goals are met, the coal cost controlprocesses and refinement, to achieve the purpose of tapping the potential saving. Onthe basis of this theoretical study, using a combination of theory and case study ideas.Analysis of cost accounting and management control of the status quo. According tothe the Yining Coal’s own processes and characteristics, select the job of fullymechanized mining face and Coalface operating two main production processes, theimplementation of the operating cost estimates in the application of the material costcontrol. And make recommendations on materials management.