Study On The Cost Benchmarking System Of Huating Coal Corporation

Coal is an important basic resource for economic and social development, accounting forabout70%of the primary energy. Although the status of coal as the main energy does notchange, but adjustment of the coal industry structure will bring great opportunities andchallenges to the coal industry. Many policies, such as promoting the rapid development oflarge coal enterprise groups, eliminating backward production capacity, adjusting andoptimizing the layout of production, promoting safe production, are putting forward higherrequirements to the internal management of the coal industry. Cost management is one of theimportant enterprise management, while benchmarking also have a major role in improvingbusiness performance. Therefore, based on the theory of cost management and benchmarking,the paper is about study on the cost benchmarking system of Huating coal with qualitative andquantitative analysis method.The paper combed the relevant research, described the detail basic theories, defined theconcepts, and put forward the idea and methods on research. The paper theoretically analyzedthe feasibility of the cost benchmarking implementation, while based on in-depth analysis ofcost management about Huating coal, this article would study on the cost benchmarkingsystem. With the empirical analysis, we could have conclusions that the system could help thecost management and improve business performance of the enterprise.The results of this study would provide the actual reference implementation of the costbenchmarking for China’s coal industry, and also provide a reference recommendations toimprove the level of enterprise cost management.