Chain cost management method is a kind of cost management method relying on information technologies and using ERP software.The concept and characteristics of the chain cost management method were introduced, and the operation mode and application effects of Yangdong Mine chain cost management method were focused on. It was pointed out that the chain cost management method had the characteristics of clarification of job duties, working initiative of workers, marketization of income distribution, assessment of power transfer, and could improve enterprise management level, effectively control coal costs, realize internal market movements, and was a typical example of improving the economic efficiency through introduction of advanced management methods, should be worth popularization and application.