Research On The Related Problems Of Comprehensive Budget Management System On The Basis Of Activity-Based Costing

Nowadays, more and more manufacturing industries enterprises adopt Activity-Based Costing (simple name-ABC). However, many enterprises adopting ABC still employ the traditional budeting method worked out according to functions, which inevitably leads to the bad coordination between the real cost reported on the basis of activities and the budgeting cost fixed according to functions. And it is not beneficial to stimulate the enthusiasm to reduce cost for the department with the responsibilities of working out budgeting. So it is necessary to make the ABC to extend to the budgeting area. The comprehensive budget management system on the basis of activity-based costing just adapts to the need. It is a new discussion to apply it to the comprehensive budget.The theoretic analysis is joined in the practical ones and the specific analysis is joined in the abstract ones in this paper. Firstly, this paper studies the comprehensive budget management system on the basis of activity-based costing systematically on the terms of theory and analyzes its formulation, execution and control, assessment and differences analysis and so on on the basis of activities-management. Secondly, this paper analyzes its formulating procedures and method deeply. Lastly, all of above are explained by an example.This paper hosts the standpoint that the comprehensive budget management system on the basis of activity-based costing is better than the traditional method on many aspects. It formulates the budget according to activity information, which makes the budget formulate on the real basis and strengthen the comparable character between the real cost and budgeting cost. It can make the key elements driven by value after draw ABC into budget. The new method makes strategy get in touch with the business process and make enterprises look over operating systems and the resources they consume. It offers more tools to adjust the budget-balance. The budget on the basis of activities-dividing and activity centers can break the closure of the departments.