Research On Budget Control From The View Of Sustainable Value Growth

Competent enterprises in china used to pursue value growth by opportunities, mergers and acquisitions. However, system management and the ability on establishing proper organization structures have become the most important parts for value creation entering into the 21st century. Budget control system is one of a few management control methods which combine the key factors of an organization into one. Therefore, it is meaningful to study the budget control on the basis of sustainable value growth. In this paper, we mainly researched on the budget control process from the view of sustainable value growth. Firstly, we briefly introduced the contents of budget control, value based management and sustainable growth rate. Then the relationships of budget control, value adding and sustainable growth were narrated and detailed the special budget control process. Finally, we summarized the thesis and forecast next study.The innovations of this paper are as follows: firstly, we analyzed situation that the competent companies were searching for ways to support their sustainable growth, and then proposed the budget control research from the view of sustainable value growth. Secondly, we studied the special budget control process: To find out the key value driver,we employed the mathematics methods, such as Linear regression model and sensitivity analysis. To obtain the sustainable growth accurately, we rectified the sustainable growth model by index-smoothing method. Lastly, as part of budget control process, the internal audit should also contribute to value growth. This paper reset the position of internal audit in the process of budget control which will make the best use of all the available resources in a company for sustainable value growth.