Building A Comprehensive Budgeting System Based On EVA For Dexing Co.Ltd

Comprehensive budget management is the business management activities of animportant means and tools, since the1920s, the overall budget management ofproduction from the initial plan, the coordinated development of both the currentmonitoring, assessment and management incentives and other effects system, andbecome whole management processes and internal control system of the core. Butwith the economic development and capital markets continue to improve, more andmore enterprises begin to pay attention ability to create value and maximizeshareholder value as a corporate goal of production and business activities. EconomicValue Added (EVA) as a measure of a firm’s ability to create value indicators, in1982by the United States Schouten Manchester (Stern Steward) management consultingfirm was first proposed, and subsequently adopted by more and more enterprises. Andcompared to the traditional budget evaluation, EVA index as an important productionand operation activities evaluation index, which is capable of enterprise valuecreation capacity and economic efficiency more realistic reflection.In this paper, a comprehensive budget management at home and abroad andresearch status of EVA starting on the comprehensive budget management mode andthe EVA related theories explain, and EVA for comprehensive budget managementsystem to improve the mechanism and EVA-based comprehensive budget managementsystem construction Necessity analyzed. Based on the theoretical analysis, but alsoincorporates the company’s actual case Dexing on EVA-oriented budgeting systemunder construction are analyzed and explained. Dexing company is a logisticscompany, the company currently uses a traditional comprehensive budgeting model,the paper of the company in the current mode, goal-oriented budget, budgetorganization, budget preparation process to analyze the content and that thecompany’s In object-oriented budget system, organizational structure, preparationmethods and other aspects of the preparation of content s ystem problems, andhighlighted in the current budget mode, in order to profit as a budget-oriented andenterprise value creation objectives deviate from the core issue. To solve theseproblems, the introduction of the EVA concept, put forward by building acomprehensive budgeting based on EVA system and other measures Dexing budgetingprocess problems to be improved.According to the relevant contingency theory point of view, the company’s business strategy and management approach to internal and external environment andwith the enterprise resource changes. With Dexing company’s industry environmentand changes in their own development, using traditional budgeting model withcomprehensive business development strategy is divorced, making enterprise feature snot function effectively. In this case, only the combination of internal and externalenvironment, based on the uptake and adoption of more advanced managementconcepts and models, the existing management systems and budgeting system toimprove, to be able to adapt to business management activities needs. EVA-basedcomprehensive budgeting system construction and implementation process, inevitablythere will be some problems, there are still staying in practice improved andperfected.