A Study Of Cost Optimization In Coal Mining Enterprise From The Perspective Of Green Accounting

The Third Plenary Session of the18th Central Committee of the CPC put forward that we shall build a system of ecological civilization to protect the ecological environment, and we will strive for the paid use and ecological compensation of resources. Currently, our breakneck economic growth is at the cost of environment damage. The frequent extreme weather and pollution accidents largely lower the citizen’s quality of life, choke off the implementation of a comprehensive well-off society as well as modernization in our country. Besides, the damage of the ecology also lowers the economic development speed. Latest concerns remains, while those ahead are approaching. Therefore, environmental conservation and pollution control have become the prior concern of the Chinese government.Coal industry is soundly polluting on one hand, and a pillar for the rapid economic growth on the other hand. So it must take the lead to respond to the national appeal, cater to the rapidly transforming national policies and the demands of the social development. This industry should raise the environmental protection as a long-term strategic key of companies, lead in the cutting edge of the national mechanism and take the initiative of the policy implementation. Green cost accounting emerged to calculate the waste water and gas, waste of resources, environmental disruption, etc. Although it underwent a development over20years, it is still at the stage of being studied, but are seldom applied in the accounting in enterprises. TC, as a model in the coal industry, will formulate a method for green cost accounting based on its current production and operation situation. Accordingly, the paper studies the accounting of the green cost in coal industry based on the manufacturing features of TC.The paper falls into6parts. The first chapter is the introduction, in which the study on green accounting and coal cost are introduced. The research methods include the combination of theory and case study, documentary research, comparative research, and quantitative analysis. The purpose of this paper is to design a cost accounting framework for the TC, a coal enterprise, and to check the reasonableness of the theory of coal cost accounting. The second chapter is the theoretical basis including the theory of circular economy, sustainable development, and externality, which provide theoretical foundations for the study of green cost accounting system. And sustainable development is the tenet of the green accounting. The third chapter is about the current cost accounting situation of the coal enterprise TC, where current state of the company and manufacturing features are described, the coal cost accounting system and the existing problems are analyzed, the necessities of the application of green cost for TC. In the fourth chapter, cost accounting framework for TC is formulated, and the accounting process of green cost is discussed:confirm, calculation, account setting, accumulation, assigning. Among them, confirm and calculation display separately the cost related to environment, which was previously classified into the management cost, to make the green cost of enterprise seems clearer. Accumulation and assigning reflect the reason for the emergence of the green cost through activity-based costing. Reasonable assigning of the cost according to the consumption of each product demonstrates accurately the cost component of each product, and helps enterprises control their cost and make decisions. Then the paper verifies the feasibility of the implementation of the framework on some specific business of the TC. In the fifth chapter, the paper analyzes the implementation difficulties of the TC’S cost accounting framework of coal enterprise:the lack of green cost control construction of enterprises, the tough financial statement compiling, profit-driven characteristic of the enterprises, technical problems, hard collection of environmental statistics, conventional cost accounting mode which does not list environmental items separately. At last a solution plan is put forward. The sixth chapter is the conclusion, which summarizes the conclusion of the paper.