Research On Cost Management Of A Coal Company Based On Activity-Based Costing

Being affected by national policies and foreign market impact,domestic coal market has been continuously slack and coal profits have dramatically decreased since 2015,Coal enterprises need change their management modes so as to adapt to more and more competitive markets.At present,the cost accounting of coal enterprises in our country is too simple and extensive,and the proportion of indirect costs in total costs continues to rise.Using traditional methods to account will lead to distortion of coal product costs.Meanwhile,its cost management means merely belongs to single post-management that lacks relevant cost pre-management and management in the event.Current post-management neither sets up a cost responsibility index mechanism nor establishes a scientific and reasonable cost performance evaluation system.It makes hard to bring all functions of cost management into play and further results in lack of scientificity for the cost management process.Therefore,how to effectively apply the scientific cost management philosophy to change the current situation of low cost management level becomes a problem that urges coal enterprises to solve now.With activity-based costing as theoretical basis and A coal company as research object and through combining self-characteristics and existing conditions,the paper constructs cost management process for it,optimizes its cost accounting accuracy and consummates its cost management scientificity so as to improve its cost management level,increase economic benefits and strengthen its market competitiveness.Firstly,briefly introduces cost management and activity-based costing,analyzes the basic principle and implementation steps of activity-based costing;secondly,based on the current status of A coal company's cost management,to analyze the problems existing in the current cost management process and the causes.;thirdly,targeting the problems such as unscientific cost budgeting making,inaccurate cost accounting and formalistic cost performance appraisal and according to self-characteristics and existing conditions,designs cost management process for A coal company based on activity-based costing including cost budgeting process,cost control process,cost accounting process,cost variance analysis process and cost performance accounting process based on activity-based costing;then,according to the relevant data,combined with the cost management process designed,cost management is performed on the cost data of A coal company for the first half of 2017.Finally,the conclusion of this paper is obtained through comparative analysis.This paper,based on the combination of theory and practice,has obtained the following conclusions: A coal company's cost management process based on ABC can improve the accuracy of its cost accounting,enhance the scientific nature of cost management,and thus achieve the purpose of improving its cost management level.