The Research On Application Of Responsibility Cost Management In W Mining Co.LTD

Makingmore profits isthe purpose of enterprises. Increasing income and reducing expenditureis the basic way for enterprise development. With the increasing competition in the market, strengthening cost control becomes increasingly important. At present, more and more enterprises of our country adopt the responsibility cost management methods to optimize the cost management, especially the project construction enterprise. Responsibility cost is a kind of cost which puts responsibility center as the object. It is able to improve awareness of cost control of staff, to save cost as much as possible,to improve the economic benefit. For now, the responsibility cost management has not been widely used in non-ferrous metal mining enterprises.In order to optimize the mining enterprise cost management, this paper will study the application of responsibility cost management in W mining company.This paper adopts the logic structure of problem oriented, starting from the basic theory of the responsibility cost management, combining with the characteristics of non-ferrous metal mining industry company, according to W company’s cost management problem, the responsibility cost management system is established. This paper first to the responsibility cost management theory in literature review and summary, the analysis of the existing theory of the existence of some disadvantages, such as responsibility center division is not based on specific, there is no clear standard cost center and cost center budget compiled on the basis of the difference, no responsibility cost accounting of the specific procedures and so on are put forward.Secondly, In this paper, it discusses the reasons for the poor profitability of W company in recent years, even when the external market environment is optimistic, the reasons are as follows: unclear responsibilities of different departments, unreasonable budget mechanism and deficient evaluation system. The necessity of construction of responsibilit y cost management system is put forward in this paper in order to solve the problem of cost management of W company. Secondly, according to the production features of the company, a set of complete responsibility cost management system is designed, including responsibility center division, the preparation of cost budgeting, as well as cost accounting and assessment. Finally, this paper will focus on the problems that responsibility cost management method encountered in practice, including: division of responsibility centers, determination of growth rate of expense budget, analysis on cost controllability and internal transfer pricing, the corresponding solutions measures are also included.The core of this paper is to design a set of specific responsibility for W company cost management plan, and for other non-ferrous metal mining companies provide reference in responsibility cost management. It filled the management method from the theory to the industry practice of blank, and then to improve the level of cost management of the entire mining industry contribution meager strength.