A Company Budget Control Study Based On The Value Chain

With the market competition increasing, enterprise management is continuouslydemanded to reach a higher level. As a large state-owned power company, the A companyhas completed the division of five business link management of "planning, construction,operation, maintenance, marketing " for the sake of achieving the upgrading of thefinancial control mode. However, the pressure from the company’s inside and outsidepushed the A company strengthen cost control and improve the business operation of finemanagement. Yan Dawu put forward the "Value-chain Accounting" which is theintegration of financial accounting and management accounting. The idea helps the Acompany optimize the budget work.This paper carries on a thorough analysis on the budget control of A company,summarizes the operation characteristics, operation situation and the main operating riskand analyzes the value chain of the company. In addition, this paper comprehensivelysummarizes the achievements and shortcomings of its budget work and pointed out thecurrent requirements of budget control and the difficulties of building optimal budget mode.Fully understanding the company status, this paper studies the budget control mode ofelectric power enterprises abroad and puts forward the two-dimensional budget model.This paper chose the way of research to explore the feasibility of the new budget controlmode and concluded that A company has firm foundation to use this mode. Finally, thispaper put forward the detailed designs based on results of the research, highlight the"operation, maintenance, marketing" business links. Through the study of this paper, thebudget model optimization scheme, in a certain extent, will promote the improvement anddevelopment of A company’s financial work and provide the reference for othercompanies.