The Study On Activity-Based Budget Based On Resource Consumption Accounting

Budget management is a important method of internal management control in enterprise. It played a crucial role in the development of modern business. Budget management is applied widely in the enterprises in the West. In China, more and more companies implement budget management actively.With the social development, economic progress,intensifying competition,the enterprise's internal and external business enveronment has undergone tremendous changes; the disadvantages of traditional ABB have emerged. Activity-based Budget management based on RCA becomes an inevitable trend. Activity-based budget using RCA pricinples can not only help businesses achieve strategy, but also help the staff have a better understanding of activities or processes. It can not only strenthen the control,but also combine staff performance with budget performance management system.This paper is a research on the theory and application of Activity-Based Budgeting based on RCA of domestic and foreign scholar's research results. In theory, It summarizes the definition and background of Activity-Based Budgeting based on RCA. The paper expound the process and application conditions of Activity-Based Budgeting based on RCA. In order to fully reflect the superiority of Activity-Based Budgeting based on RCA, this paper represent comprehensive implementation process of Activity-Based Budgeting based on RCA,covering the principles,Budget target setting, budgeting, budget control, performance Management.