Application Study On Activity-based Costing In H Mining Company

With the rapid development of modern science and technology and globalization,the traditional manufacturing industry in China is continuously impacted.Enterprises are facing both challenges from operating environment and management mode.In this case,cost-management competition has become a strong factor between your enterprises and competitors,thus it has become more and more important to provide accurate and effective cost management accounting methods for enterprises.At the same time,it is clear that traditional costing methods for cost management in modern enterprises have gradually failed to meet the needs of accuracy.There is also a fact that the research and application of ABC in China lags slightly compared with the research and practical application of activity-based cost method(ABC)abroad.At present,China is still in the stage of theoretical research and pilot application in the study and applying of activity-based cost management.However,with the development of information technology,especially the continuous application of artificial intelligence in various fields,traditional cost management methods is certain to be eliminated.A growing numbers of domestic enterprises have started to launch the test of refine cost management,especially the study of ABC application in practice,in order to optimize the current cost management methods,and to improve the accuracy of cost information,thus the resource allocation of enterprises,and competitive advantage of enterprises will be cutting-edge in the business environment.Starting from the background of the study,this paper elaborates the significance of the implementation of job-cost method to mining enterprises from four aspects.Firstly,with the development and progress of mechanization,there is a change in the cost structure: the direct cost proportion decreases while the indirect cost proportion increases.Moreover,the seller's market has changed to the buyer's market,which leads to more and more intense market competition.Customer demand has changed from large-scale,unified to small-volume,differentiated.It has become a heated topic of modern enterprises on How to quickly respond to the changing needs of customers,to produce different new products in a short time,and to meet the needs of customers in time.Thirdly,the ever-changing economic environment has been increasingly exposing the drawbacks of the traditional cost method.Enterprises need to make corresponding changes in the internal environment in order to adapt to the rapid external economic environment changes while traditional cost methods often fails to match the changes of enterprises in cost accounting,causing a distorted cost information,and fails to provide real decision support for enterprise management.Fourthly,the implementation of ABC is not a goal,but a means to help enterprises achieve their final strategic goals.In the second chapter,through sorting out the theoretical and practical research of ABC Method at home and abroad,it is concluded that ABC Method has some research in traditional manufacturing industry,but there are few research on its application in mining enterprises,so the research direction of this paper is determined.Chapter III is the theoretical research on Activity-Based Costing in mining enterprises.Starting from the basic analysis,it briefly introduces the four basic elements of Activity-Based Costing.Cost drivers are the key elements of Activity-Based Costing.The second section points out the drawbacks of the traditional cost method after the changes of the internal and external environment of the enterprise through the theoretical comparison between the traditional activity-based cost method and the ABC method.The third section has set an aspect of the current economic form of mining industry in China,and has put forward the applicability of ABC method in mining enterprises and the solution of supporting the cost management strategy of mining enterprises.The fourth chapter of this article is to analyze the current situation of cost management in H Mining Company.The research of H Mining Company is carried out through introducing the background,scale,product characteristics of the enterprise,and the important production process of H Mining Company.It is worth mentioning the three important processing and production processes of sodium,drying and grinding,as well as the loading,electromechanical maintenance and quality control workshops of three auxiliary production departments.The introduction of production processes is to make it easier to identify the activities and prepare for the establishment of activity zone.After the background and production process,it is an analysis of the current status of cost management in H Mining Company.There are two main aspects to analyze: the content of cost accounting and the method of cost management which reveals that the current cost management is out of line with the product structure of the enterprise and the strategic direction of the enterprise cost management in four aspects.Chapter V is the analysis of the necessity to introducing ABC Method into H Mining Company.The limitation of the current cost calculation method has been put aside as: the failure of cost accounting accuracy that originally related to production process,process flow,production operation and resource consumption,and its specific performance is further analyzed to reflect the limitations of the current cost calculation.This concludes the necessity of implementing the activity-based cost method.The last part of the feasibility analysis starts from four aspects,outlines the conditions and basis for H Mining Company to implement the activity-based cost accounting system.Chapter VI is the construction of the cost accounting system of H Mining Company based on the activity-based cost method.Through on-the-spot investigation and long-term research of H Mining Company,the cost accounting system is constructed from three aspects: the division of operation cost,the confirmation of cost motivation and cost planning.By comparing with the traditional cost accounting method,the research conclusion is that the implementation of ABC method by H Mining Company can improve the accuracy and validity,it also can optimize cost management,and more effectively configure enterprise resources.At the same time,it is pointed out that the purpose and significance of establishing ABC accounting system should not be ignored because of the strategic cost management and the principle of cost-effectiveness.Finally,I hope that the empirical study of H Mining Company can provide a solution for the mining enterprises to implement the activity-based cost method,and truly provide reference for improving the cost efficiency of mining enterprises.In the era of overall mining economy,it provides a way for mining enterprises to optimize cost management,and help them maintain low cost advantages and overcome the difficulties at this stage.