Research On Cost Control Based On Activity-Based Costing In FX Coal Mine

China is a country with very rich coal resources,and statistics show that the Chinese outputs of coal resources have been larger than the actual demands from very early on.Consequently,the constantly lower market price of coals has brought severe challenges to the coal enterprises.Due to the rapidly progressing technologies and the emergence of new equipment,the coal industry has gradually realized the mechanized operations and the intelligent management,with increasingly larger indirect costs.It is fair to say that the traditional cost accounting is no longer in line with the cost estimation of the modern coal products,as the traditional approach has been ineffective in controlling the enterprise cost.Based on the operation mode of FX Coal Co.,Ltd(short for FX Coal hereinafter),this paper explains the high level of mechanized operations of FX Coal.However,the fact that FX Coal sticks to the traditional cost accounting means it didn't update the approach and there will be large errors in the accounting process.Other possible issues include the proportional imbalance of cost group,the negative impact on cost control as well as many other tough corporate issues,including the product pricing and the production planning.Many different methods are used in this paper to probe into the current situations of FX Coal for confirming the advantages and actual effects of the activity-based costing,involving literature research,case studies,field trips,and normative analyses,etc.As mentioned above,the traditional accounting adopted by FX Coal only regards outputs as the standard of production cost distribution,which leads to big errors in the cost information of products.Furthermore,unreal information will definitely mislead enterprises into making inappropriate and even wrong decisions.With the cost accounting of FX Coal in mind,this paper comes to analyze the problems and causes.Secondly,relevant preparations are proposed by this paper in accordance with the production process evaluation of FX Coal,and a cost control system involving activity-based costing is established to meet FX Coal's production demands.Eventually,the cost control mechanism mentioned above is utilized for the actual production of FX Coal,along with the scientific and reasonable implementation steps that are designed to meet preset goals.The results of the two cost accounting approaches are compared to figure out the causes behind the differences.Meanwhile,the summary regarding the applicabilities of the two cost accounting approaches helps determine the significances of different cost control systems on the corporate development.In order to ensure the successful operations of the cost accounting system,reasonable implementation plans are proposed.For the coal enterprises facing challenges in their future development,cost control can contribute to their growth and more accurate information can also be delivered to them with the activity-based accounting.As a result,costs can be effectively controlled while improving working efficiency and lowering human costs,all of which are positive signs for the corporate development.