Research On The Application Of Target-Activity-Based Cost Management Mode In The Coal Enterprises

As the pillar industry of the economic and social development, the coal industry plays a vital role in the national for a long time. However, as the economic globalization, the traditional coal industry is in the stage of cyclical adjustment for the application of new energy in the "new normal" of economic of China. The coal staffs are from "free-riding" high-profit era towards the small profit even loss period. What more difficult is to balance the benefit and cost. All these highlight the key role of cost management in the enterprise development.System study is presented on the basis of theory of cost management. Combined with the situation of existing cost application mode in the coal industry, the thesis establishes a framework of the new mode that draws lessons from the reference of the controllable activity-based costing. Then the thesis describes the implementation process of the framework.Target-activity-based cost management mode is the combination of the Target Cost Management and Activity-Based Cost Management. The Target Cost Management is major in feedforward control, and the other is mainly responsible for the process and feedback control. Through the cost analysis and improvement, target cost in activities could be carried out, from which this thesis realizes the effective and reasonable convergence in the two ways. A closed loop system is established by adjusting the target cost to the results of cost analysis and assessmen. Appling the new system, coal enterprises reach a new level of the cost control and management, which is of great significance for the overall competitiveness of coal industry.The question in cost management is the implemention. For this puprose, the thesis researches on the reform of ZK company and selects one of the main production(tunneling operation) for specific application. The mode in ZK company, providing more reasonable target cost and relatively cost information, finding a variety of problems in activities timely, and removing non-value added activities and inefficient activities, contributes the higher product capacity and economic benefit. Therefore, this kind of standard operating process should be taken as a reference or basis for most other coal enterprises.