Study On Order Activity-Based Cost Management In Coal Preparation Plant

With the stinging market competition, many enterprises have adopted the order form production, and they arrange production according to the market and customer. As the concept of order-cost is put forward, the production cost and service cost gather and compose the order-cost. The application of activity based costing, provides foundation on which companies can follow, control and can make correct appraising of order-cost.The paper studies the order cost management of the coal preparation plants from the point of the activity based cost management. Based on the analyses of the current problems of the theory and application of cost management in the coal preparation plants, it studies the characteristics of the cost management in the coal preparation plants, and associates with cost management theories such as order cost concepts and ABCM to present the order-cost management model in the coal preparation plants based on activity based cost management, which will enhance the cost management and provide the guidance to improve the cost management in the coal preparation plants.In the system of order activity based cost management in coal preparation plants, firstly, this paper presents the activity based cost management under the order-cost concept, and sets up the frame of the model of order activity based cost management in the coal preparation plants; secondly , compartmentalize operation centers based on the operational analysis of the coal preparation plants and the analysis of value-added activity, and make cost accounting according to the main principles of ABC and the order cost concepts. Then makes use of the theories and methods of Activity based costing to analyze Number 2 Coal Preparation Plant in Yanzhou Coal Enterprise, and presents the cost down policy based on activity. At last, sets up the cost management guarantee system, which includes cost control appraising system based on activity, work system of activity cost management and organization system of activity cost management. The order activity based cost management in coal preparation plants that is investigated in this paper has fetched up the limitation of coal preparation plants industry, so it has clear practical and social significance.