Research On JM Company’s Budget Management Based On Economic Value Added

With the changing of the economic environment, our country’s economy has entered a new development status, the large and medium-sized enterprises are very busy for transformation of state-owned, small and medium-sized enterprises are trying on exploring the use of scientific management methods. Because of itself exists defects cannot fully meet the rapid development of the modern enterprise for comprehensive budget management. As a result, more and more scholars and enterprise management practice are finding better tools to make up for the deficiency of the comprehensive budget, from the beginning of operation cost to a strategic perspective, but now have more and more people are studying direction to the economic value added value management concept. The change of economic environment, so enterprise managers can’t just stand in the perspective of profits, also consider the enterprise in the development of the real, and more requirement is that they can stand in the perspective of various stakeholders enterprises, thinking about the long-term development of the enterprise strategy and enterprise value maximization. Economic value added is a kind of value management thought that enterprise managers must attach importance to the enterprise cost of capital, standing on the two aspects of non-financial indicators and financial indicators for the development of the enterprise. So far in our country, economic value added index more is made in the aspect of enterprise performance evaluation. However, the researchers put it combined with the comprehensive budget management on the budget adjustment, and more and more get the attention of people. Researchers and management practitioners are aware of must pay attention to the long-term development of the enterprise and create the value of the enterprise. So that can the enterprise be in such a complex economic environment development. In the article, I choose a small and medium-sized private enterprise as the research object, and design a set of comprehensive budget management based on EVA for it.The article uses the method of case study and literature reference for JM Company for economic value added as the guidance of comprehensive budget management improvement. Article is together six parts.the first part, the introduction of the article is mainly elaborated the paper research background and significance, the related research at home and abroad has carried on the detailed combing and summary, the research framework of the article and article conception and comb out insufficient place. The second part, mainly on the basis of case analysis used to theoretical summary and analysis, the paper mainly involves the comprehensive budget management and economic value added the calculation of the adjustment, and the necessity of the combination of these basic theories. The third part, the paper analyzes the case material JM company background and the status quo of the budget, budget problems and the analysis of problems and budget management, the necessity of improvement of JM Company. The fourth part, this is the main part of the article, through the analysis of theoretical knowledge and economic environment, select case JM Company, to improve its budget. The fifth part, mainly expounds further, safeguards of comprehensive budget management based on the economic value added will be carried out. The sixth part, the article has carried on the summary and comb, and the conclusion of the article make a promise.The innovation of the article is the comprehensive budget management has carried on the detailed study of JM Company based on economic value added, the entire process involves a large number of theoretical principle, such as, joint base method, economic value added accounting adjustment and so on. Make full use of the economic value added value management thought, development of JM Company and budget management provides scientific decision-making advice in the future, also provide an examples for the mall and medium-sized enterprises on the way to seek scientific management methods.