Implementation Of Budget Management Based On Activity-Based Costing In A Coal Enterprises

Since the end of 2011,great changes have taken place in the external environment faced by the development of coal enterprises in China.The overcapacity and oversupply of domestic coal market have led to the continuous decline of coal price for a period of time,and the situation of the whole industry is not optimistic.In this case,if coal enterprises want to continue to develop and survive in the fierce market competition,cost budget management is particularly important.At present,with the development and improvement of modern science and technology,more and more processes can be automated in the production and operation process of coal enterprises in China,which leads to less weight of direct labor cost in the cost,but the proportion of indirect cost increases.However,most of the coal enterprises in our country currently use a single way of cost accounting.Facing this kind of cost change,it is impossible to calculate accurate cost data.Budget management under activity-based costing can connect resources and activities,not only can calculate more accurate cost information for enterprises,but also can play the real role of cost budget management.Therefore,taking a coal company as an example,this paper deeply studies how to make the budget management based on activitybased costing really apply to the enterprise,and improve the current situation of budget management in the enterprise.In this paper,the domestic and foreign scholars on the basis of activity-based costing budget management related research are summarized and collated.Secondly,this paper selects a coal company as the research object,combined with its own characteristics and existing conditions,finds and points out the existing problems in its current cost budget management,and points out the necessity and feasibility of the application of budget management in a company under the activity-based costing.Thirdly,this paper deeply analyzes the production process of company a,builds a budget management system based on activity-based costing,and compares the results of budget management under activity-based costing and traditional budget management.Finally,in view of the shortcomings of a company's budget management environment,it puts forward specific safeguard measures.Through the research on the implementation of budget management under activity-based costing in company a,this paper draws the following conclusions: firstly,the cost data calculated by activity-based costing is more objective and scientific,which improves the inaccuracy of cost accounting in company A.Secondly,the accurate cost data makes the budget management more reliable,the budget management results more real and reasonable,and effectively play the real role of budget management,which is conducive to a company for more accurate cost control.Finally,company a can successfully carry out the budget management based on activity-based costing,which needs to strengthen the attention of the company's senior staff to the budget and mobilize the enthusiasm of all employees.