The Research On Application Of Comprehensive Budget Management In Electric Power Enterprises

Comprehensive budget management (CBM) emerged in the early 20th and became themain method for internal administration control of enterprises. In the western developedcountry,it has been spread widely and become one of the significant components for internaladministration system of enterprises. But budget management appears so late in our country asa new management concept,there still exists some misunderstandings on the meanings,theeffectiveness and the foundations of budget management both in theory and practice field,which greatly restrict it's function in the field of enterprise management.The electric power enterprise was regulated too much by the nation in the past plannedeconomy time. While"Price competition to the Grid"has beeome the irresistible trends withreforms of electiec power system and the entrance to WTO of China. More and more electricpower enterprises are turning to"budget management"from"scheme"to deal with thecoming market competition and increase their core competitive abilities.The expatiation is done first on the reality of domestic and abroad budget management toanalyze the necessity for eleetric power enterprise to implement comprehensive budgetmanagement (CBM) and explain the corresponding theories. Then the actualities and mainproblems of budget management in electric power enterprise are analyzed, institutions andsystem for CBM are designed from compiling procedures, methods and formats of CBM. Atlast, an example of buduet management in year 2006 of one eleetric power enterprise is givento introduce the application of CBM and give countermeasures and advice to improve CBMwith the implementation result of CBM.With the maturity and enlargement of modern enterprise scale,budget management,which acts as an important management system to promote the development of enterprise,hasalready got extensive attention in the theory and industry fields because of its capability in thestandardization of enterprise behaviors and the strengthening of enterprise interior control. The purpose of this article is to draw the outline of CMB system for eleetric power enterprises byilluminating the whole application prcess of CMB, and help the electric power enterprises tocontrol the cost, improve efficiency, advance more benefits and achieve the long-termdevelopment strategies in new conditions and new environments.