Study On The Incentive-oriented Cost Budgeting Mode

With the further development of humanistic management concept in the enterprise andthe arrival of fast-developing information age, the current production cost budgeting model inour country cannot adapt to the ever changing environment. The dual role of currentproduction cost budgeting model cannot be played effectively because of the limitation ofincentives, the Single hierarchy of budge level and the poor quality of basic data.Based on the reference to much of the overseas and domestic research, using costmanagement theories, budging management theories and incentive theories, this paper has adeep analysis on the existing problems on the current Chinese companies’ production costbudgeting model. Based on the clarification of the connotation and feature of production costbudgeting model oriented by incentives, it proposes the production cost budgeting principlesand models.Base on the actual cost data and business condition of the S Company, this paperconducts an empirical analysis on production cost budgeting model which is oriented byincentives. This paper has a contrastive analysis between budging result and traditionalproduction cost budgeting result, and proves that production cost budgeting model which isoriented by incentives has more advantage on incentive function, control function andspecifications. In order to implement the production cost budgeting model oriented byincentives effectively, this paper proposes the detailed supporting measurement in aspect ofeffective incentive mechanism, the emphasis on basic data accumulation and reinforcement ofproduction cost budget.