Research Of Enterprise A Budget Management System Establishment Based On Cost Control

For the long time, China’s high rapid development of economy is at the cost of hugeconsumption of the economic resources，and the weak cost control restricts the sustainabledevelopment of enterprises, thus it put forward higher requirement for the internalmanagement of the enterprises. At present, many domestic enterprises original cost controland budget management status can not meet the demand of enterprises to participate inmarket competition, it is required the full awareness of the implementation of the budgetmanagement as an important role to improve enterprise management level and economicefficiency.This research adopts the method of literature study analysis, field survey analysis andsample-case analysis,cited Company A’s cost control and budget management， andanalyzes the underlying causes. In view of cost control and budget management theories，it proposes the tentative idea to build a budget management system based on the costcontrol:①analyzes from the operation process and cost structure,②establishes costcontrol index by scientific experiments and specification analysis,③establish es thebudget target based on the cost control index,④combines the budget index&performanceindex with the company strategy. From the aspects above it explores how to establish thebudget management system, and further expounds the safeguard measures of theimplementation of budget management based on cost control in company A.This research, stresses the importance of budget management in the conjunction withthe company strategy and the assessment, This research stressed the importance of budgetmanagement in conjunction with the company’s strategy and the examination andevaluation by exploring how to build the budget management system in the enterprise,reveals the importance of budget management system establishment to the cost reduction.