The Study On Assessment Of Activity-based Budgeting

As an important way of internal control, budgeting was drawn in American organizations such as GE, Dupont Company and had great influence on management from 20s'last century. Then the method was adopted by much more companies one after another and traditional master budgeting management took shape. The later of 1980s',organization structure changed from perpendicular which was suitable to traditional master budgeting management to parallel, the validity and effectiveness was doubted. At the same time,"activity"was drawn in and took place of"product"as the basic unit of business management and had good effectiveness on management, so activity-based budgeting was gradually drawn in and became the key model of budgeting management in the times of western activity-based budgeting management as well as attracted more and more attention. Activity-based budgeting is the application of activity-based costing in the area of business management.From the view of processes, as a complete system of organization, implementation and assessment of budgeting, it controls ultimately to business operation to go round and begin again. And budgeting assessment is the end of this circle as well as the beginning of the next. The paper displayed and summarized records about activity-based budgeting including domestic and abroad, then emphasized on the activity of its assessment and illustrated it with examples based on the analysis of its theoretical basis. The model contains two aspects: First is the assessment of activity. The assessment and evaluation of activity-based budgeting requested the assessment of the activity center to command the implementing situation and the evaluation of entirety effects after some time especially a financial year by synthetic analysis. Under this case, we designed a series of targets to assess the effects of course and results by the assessment of activity-based budgeting to identify whether we achieve the strategics targets or adjust the currently strategy. It was the final action and self- inspection of activity-based budgeting management.