Study On Improving Cost Budget Management With ABC Method In Oilfield Well-drilling Branches

Activity-Based Costing (ABC) method is a cost account & control method based on activity, which takes cost driver theory as the core concepts. Applying ABC method to cost budget makes great sense to deepen and specify budget management and advance the science of budget management. This paper tries to apply ABC method to cost budget of oilfield well-drilling branches, and makes study on how to improve actual budget management pattern. The center of this paper is to strike up a new well-drilling project cost budget method based on single well applying cost driver theory combined with Zero-based Budget.This paper is divided into nine parts. Chapter one, the preface; Chapter two, discusses the basic theory and method of budget management and ABC; Chapter three, analyzes the cost constitutes and influential factors of oilfield well-drilling branches based on explaining well-drilling process and organization process , and then analyzes the actual modus operandi and main questions in cost budget management of oilfield well-drilling branches; Chapter four, applies ABC method to single well cost budget of drilling branches, strikes up basic pattern of drilling project cost for single well based on activity cost driver analysis to improve cost budget management of oilfield well-drilling branches; Chapter five, embodies how to make single well drilling cost budget planning based on activity cost driver analysis after chapter four; Chapter six, explain specially cost driver of activity centers of well-drilling branches which specifies chapter five; Chapter seven, designs tables for making cost budget planning based on single well in well-drilling branches after chapter four, five and six; chapter eight, discusses the questions about executive analysis and perform evaluation of cost budget in well-drilling branches; Chapter nine, the conclusion.