This paper discusses the traditional costing approach
currently used in the underground coal mining industry.
Activity Based Costing (ABC) is identified as being a
potentially more effective manner in which to cost
underground coal mining systems. It is observed that
when a system is costed using ABC that better investment
decisions result when compared to costing the same
system using traditional costing techniques. It is
further seen that traditional costing techniques tend to
overestimate the total costs of a mining system. This
paper shows one application of ABC that can be
incorporated as a management tool. pdf
