Construction Of The Comprehensive Budget Management System On The Basis Of Activity-based Budget

As an effective tool for internal management control, comprehensive budgetmanagement links up the business activities with the external environment andinternal resource allocation. It is a kind of business management model, whichgathering a set of strategic, systematic, and humanistic etc of all kind of philosophy.And it takes a control of the whole process of business operation activities. As thebudget management now, the theoretical system has been becoming more and moreperfect, a variety of ideas about budget management emerging in endlessly. However,its use in practical work is dissatisfactory, since most enterprises are still using thetraditional budget management model. And this model exists too many defects onmechanisms and loopholes on management, has been unable to meet the satisfactoryof modern knowledge-based and network-based enterprise development. From thepoint of activities, comprehensive budget management on the basis of activity-basedbudget combined with the idea of activity-based cost and activity-based management,and then applied to the comprehensive budget management processes, will improvethe competitive advantage, implement strategic management, create value-added forthe enterprises and other irreplaceable advantages of the traditional budget method.This paper adopts the method of combining normative analysis and case studies,from the budget targeting, budget making, budget controlling, and budget evaluationof four aspects to build a comprehensive budget management system based onactivity-based budget perspective. And applies them to the comprehensive budgetmanagement system process design of the DF company. When targeting budget,combining the strength and the confirmed opportunities with strategic objectives, andthen formed a strategy for the company. And the company strategy will down to everylevel through the activity-based budget system. As for budget making, on the basis ofcost drivers for the activity-based budget target decomposition, enterprise couldintroduce the concept of a person in charge of the process, to form a two-dimensionalbudget making idea closely linked functional department and activity process, and thebudget making process of the corporate is determined. In terms of budget control, onthe basis of determination of the budget control standards, take the differentialscontrolling through activities and budget execution. Timely adjustment of the relevantactivities could be used to ensure business efficiency goals, and identified specificcontrol system of the corporate budget. In the budget evaluation, in accordance with the scope of evaluation coverage and frequency of evaluation there have two kinds ofassessments, activity center budgetary assessment and activity-based assessment.Double evaluation provides a complete basis for the control effect of both during orafter it, and identified specific assessment indicators of the enterprise budgetevaluation. By drawing on the domestic and foreign advanced budget managementtheory, we can choose a process budget theory which is suitable for the flatteningorganizational structured enterprises in China. Importing the budget system ofrepresentative manufacturing enterprises to build the case to conduct feasibilitystudies, which summed up to reflect the Chinese enterprises characteristics of theactivity-based budget management theories and practices, and provide a reference forthe management practices of our activity-based budget.