SL Company Based On Activity-based Costing Research On Cost Management Of Coal Production

Under the dual influence of the optimization of energy consumption structure and low price imported coal,the domestic coal market is oversupplied,resulting in the continuous decline of coal price.Based on the characteristics of their own products,coal enterprises can only reduce production costs to improve their market competitiveness,so it is particularly important for coal enterprises to improve cost management ability.On the one hand,with the improvement of mechanization level and the increase of indirect cost,a series of cost management problems,such as low accuracy of cost budget,still exist in the traditional cost method.On the other hand,considering the characteristics of the production cost structure of coal enterprises,the material cost accounts for a high proportion but does not constitute the final product,only plays the role of auxiliary production an can be reused.Therefore,it can improve all kinds of cost management defects of coal enterprises in the traditional cost method to clarify the cost drivers,allocate the indirect costs scientifically and adopt the activity-based cost method.Taking SL Company as an example,based on the study of the relevant theory of activity-based costing,this paper considers the improvement suggestions of production cost management in coal enterprises.Firstly,it introduces the research background of cost management in coal enterprises and the significance of using activity-based costing to improve cost management.Secondly,it introduces the operation of SL Company and its coal mining process and coal production cost composition,analyzes the existing problems and causes of production cost management,and discusses the necessity and feasibility of SL Company's implementation of activity-based costing.At last,this paper designs the cost budget method based on activity-based costing for SL Company and puts forward cost management suggestions for some production links in coal mining process,and puts forward a series of guarantee measures for SL Company to adopt activity-based costing.