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Author: Admin | 2025-04-28
Coal can affect production costs. More efficient methods and more sophisticated technology can reduce production costs.Raw Coal Quality: Coal that is of low quality or contains impurities and contaminants will require additional processing, which can increase production costs.Methods of Calculating Coal Mine Production CostsThere are several methods that can be used to calculate the production cost of a coal mine. Two common methods that are often used are:Full Costing MethodThe full costing method calculates production costs by taking into account all costs associated with coal production. This method includes extraction costs, processing costs, overhead costs, and other costs. By using this method, the calculation of production costs becomes more comprehensive and includes all related aspects.Variable Costing MethodThe variable costing method only takes into account the variable costs directly related to coal production. Variable costs include raw material costs, direct labor costs, and other operational costs that are directly related to production. This method does not take into account fixed costs such as factory overhead.Example of Calculation of Coal Mine Production CostsLet’s look at an example of calculating the production cost of a coal mine using the full costing method:Extraction Fee:a. Transportation costs: IDR 500,000,000b. Equipment costs: IDR 1,200,000,000c. Labor costs: IDR 800,000,000Processing Fee:a. Coal processing costs: IDR 1,500,000,000b. Processing labor costs: IDR 600,000,000Overheads:a. Electricity fee: IDR 200,000,000b. Maintenance fee: IDR 300,000,000Total production costs = Extraction costs + Processing costs + Overhead costsTotal production costs = (Rp 500,000,000 + Rp 1,200,000,000 + Rp 800,000,000) + (Rp 1,500,000,000 + Rp 600,000,000) +
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