The Application And Research Of Activity-based Cost Method In Budget Management In Jilin Oilfield

The Activity-based costing management theory is the frontiers of management accounting, it is a kind of method that can provide more accurate cost information, it could used to help enterprises improve a business decision making, budget control and economic activities analysis, and therefore, improve the performance evaluation.Jilin Oilfield Company has a huge amount of assets, so the linear relationship between the finished products and the cost is not obvious. If the activity-based costing method which represent the future cost management development direction to be applied in Jilin oilfield, it will upgrade the level of cost management in oilfield and scientific Fine quantitative management, so it have an important value of theory and application.Through field survey of Jilin oilfield company,The paper use this approach that interviews with Skilled Professionals, the relevant finance staff, access to costing information, etc. and understand the application of Activity-Based Costing in budget management. combining the budget software based on activity-based costing in Jilin oilfield company, According to production process to identify Activity, According to operation processes and resources to make data collection, and Confirm the Activity contains resource types, put the resource into the Activity, Compute resource consumption and cost in all years and in all Activity centers, in order to get motivation distribution rate, And then budgeted based on activities. Finally get a summary of the whole production budget. This article demonstrates the combination of theory and practice of application of activity-based costing in cost budget management to come up with activity-based costing can be used to achieve the goal of controlling and cost savings.The article include the following several parts: The first part is the introduction which introduces the research background, significance, and the innovation points , the second part is the summarization which Introduces the developing process and basic theory of the Activity-Based Costing, The third part is the significance of Activity-Based Costing in Jilin oilfield , which Introduces the current situation and problems existing in the traditional budget about the budget management in Jilin oilfield. The fourth part is the design of the activity-based costing method in Jilin oilfield. The fifth part is the practical application of the activity-based costing method in cost budget management in Jilin oilfield. The last part IS reaches a conclusion and suggestion.