A Study On The CQ Petroleum Company Of Budget Slack Phenomenon

With the deep implementation of comprehensive budget, more and more questions are beginning to appear, among them, budgetary slack behavior which is engendered in the enterprise is becoming a common phenomena. Budgetary slack will cause of dislocation of enterprise resources, inaccuracy of performance appraisal, low efficiency of business management and other problems. Therefore, budgetary slack has been a hot issue in academic research since the concept was raised.In this paper, first of all, analyses the comprehensive budget management, introduces the meaning of comprehensive budget management, the concept of budget slack, and then based on the behavioral science theory, principal-agent theory, game theory to analyze the causes of budget slack, a comprehensive explanation of the theory of the causes of budgetary slack. On this basis, analysis of the budgetary slack meaning, and points out that the budget slack can influence the coordinated operation of the various departments and enterprises, the lower management efficiency, too loose budget can not minimize cost and maximize profit. In the case study part, through the analysis of the basic business of CQ oilfield company and comprehensive budget management situation and the financial budget, annual financial data, and combined with CQ oilfield company of the main cause of budget slack from the internal factors of budget system, budget system analysis in three aspects: the external factors and individual factors. Studies have shown that cause of budget slack of CQ oilfield which includes: budget stressed that budget participation, the uncertainty of external environment, information asymmetry, task is not clear, the pressure of budget implementation, etc. Finally, to control the main budget slack from the whole process of budget management, budget target standardization using company’s performance appraisal and incentive mechanism and improving oilfield the three aspects of management, to ensure that the field control in the reasonable scope of budget slack, eventually to promote the sustainable development of the oilfield.