The Research Of Total Budget Analysis And Control System Based On The Activity-based Costing

Total budget management is one of important management control means within the enterprise, whose core rests with the cost control and activity management. The existing total budget management is weak in the function of budget analysis and control, which can not meet the demand of modern enterprise's management and decision. In the budget control system based on activity-based costing, the control is focused on the activity, the cause and effect of the product's cost is derived, more activity cost needed in the total budget analysis and control is supplied. The budget control system based on activity-based costing inherits the traditional budget control and has its own development in the aspect of theory and methods, which becomes the trend of enterprises' budget control in the future.Firstly, the theory and methods of activity-based costing are analyzed. The fundamental, notional models, mathematical models, calculation structure and steps of activity-based costing are summarized. Through the analysis of control principle of total budget control system, it is educed that total budget control system is actually one of the typical feedback control systems. The logical model of the budget control system based on activity-based costing is constructed by the whole target and functional structure. The further study is conducted to get the model and implementation techniques of the control of making the budget, the control of implementing the budget, the control of evaluating the budget by the order of time. In the period of making the budget, the total budget making system based on the activity-based budget and budgetary balance are established. The operational balance is guaranteed by the adjustment of budget plan, which is realized by the analysis of activity and calculation on trial. The financial balance is ensured by the analysis of calculation result. In the period of implementing the budget, the feedback control model is formed to monitor and control the process of budget implementation process by breaking down the whole budget and designing the observation system based on mapping cost drivers and the control system based on CUSUM. The supervision of the budget implementation process can be achieved then. At the end of budget period, in accordance with features of activity-based costing, the budget evaluation method is raised on the budget variance analysis and the combination of activity-based costing and balanced scorecard. The indirect control of enterprises' budget is realized. Finally, with the theory of software engineering, the total budget control system based on activity-based costing is analyzed and designed, and most of its functions are implemented.Several contributions are done in this paper. One of those is establishing the logistic model of the total budget control based on activity-based costing with the combination of fundamentals of activity-based costing and basic principles of budget control. The other one is that models and methods of the budget making control, the budget implementation control and the budget evaluation control are raised in this paper. Finally, the analysis and design of the total budget control system are done with the principle of software engineering, and most of the functions are implemented. The achievement of this research has a certain reference value for those enterprises which intend to implement the total budget control system based activity-based costing. The management control level can be remarkably improved.