Activity-based Coal Enterprise Cost Management Research

With the development of globalization, the competition that the enterprises faceis not only the domestic enterprise competition, but the international competition.Ifthe enterprise wants to survive and develop, he must has certain profit space. As weall know, we put cost as the value compensation costs, so the importance of itincreasingly prominent in enterprise’s position. However, it still has significantweakness in the cost management in China. When we mention cost management,enterprise staff’s first idea is to save and compression. Little imagine, this solutiondoes not fundamentally solve cost problems. So we have to find the root of theproblem, according to the actual situation of the enterprise to find a cost managementmethod.The development of cost management abroad provides us a good reference, buthow to select these cost management methods becomes a serious problem for Chinaenterprise. At present, target cost method and activity-based cost method are the moreadvanced methods than the other management methods. In our country, the target costmanagement has also been used mostly in enterprises, but the really use theactivity-based costing method of enterprise is not so much, so the cost managementsystem have not formed. Target cost management theory and the development ofactivity-based costing management provide us a good chance. After analysis, wefound that the combination of the two can compensate for their defects, and then theiradvantage will be displayed incisively and vividly. It can achieve the effect of1+1>2. This kind of cost management methods will put advance, course and afterwardsmanagement implements to the whole chain to help the enterprises controllingcomprehensively, besides, it is not only beneficial to the enterprises forecast and makethe target cost from the strategy, but also optimize the construction process from thetactics, and make it to evaluate the construction cost accurately. It provides a goodreference on cost control for our country enterprise, and has high practicalsignificance and practical value.After entering the economic market, China coal enterprise gave different degreeof attention in producing management aspects of cost management, and also tooksome positive cost management method in a certain extent promoting the economicdevelopment. However, being influenced by the influence of the traditional plannedeconomy, China coal enterprise cost control still use the traditional cost controlmethod, mainly make products as cost calculation of object, and make the quantity asthe cost allocation standard, meanwhile seldom pay attention to the context of the cost,which do not help the enterprise take specific measures, so the cost on the road ropeyimprovement.This article adopts the method of combining qualitative and quantitative analysis,normative analysis and case analysis unifies. After the research of related literature at home and abroad, this paper collects all the widest or the hottest cost managementmethods in our country, including the applicability，advantages and disadvantages.Next, the author takes a coal enterprise as an example, combining with its productionprocess and the influence factors of each respect abort cost constitutes in our country,points out that the common problems existing in the management, then analyzes itsreason, and puts forward a new solution to lay the basis. Again, taking a coal miningenterprises for empirical object, choose a suitable cost management method for itselfaccording to its characteristics. Meanwhile, this paper puts forward the feasibility ofimplementing target-activity-based costing management in the coal enterprises. Then,we combine one certain coal enterprise to implement the cost management methodsgradually. The concrete process is like this: first, establish active cost base, second,identify the target cost and collect the resource to the resources pool, then distributethem, finally put forward some suggestions according to the implementation effect.Finally, this article demonstrates the feasibility of target-activity-based costingmethod in coal enterprise operation of our country through the combination of theoryand practice. This not only conforms to our country coal enterprises to strengthen costmanagement and control but provides a good reference and basis for most otherenterprises, the most important is it can improve our coal enterprises in internationalcompetition status.