Building A Dynamic Budgeting System Based On EVA For Y Co.Ltd

Budget management has become an important management means and tools of enterprise in a long history.From the initial production planning to develop into with the function of supervision,motivation,evaluation management system and budget management system has become the core of enterprise management control system.But in practice,the problem of budget management emerge in endlessly,the design of the budgeting system is flawed,so that budget implementation,control,adjustment,analysis and assessment work are hard to carry on.The enterprise internal management of complexity and uncertainty of external environment puts forward new requirements on budget management.Budgeting system is an important content in the budget management system,so it is urgent to improve it.This paper based on the enterprise value maximization objectives and internal and external environment of dynamic complexity,the basic fact that it puts forward dynamic budgeting system based on EVA,aims to make the budget and value creation goal,and at the same time improving the flexibility of the budget.In this paper,theoretical analysis and case study is divided into three main research contents,on the research review,two aspects of research results at home and abroad are reviewed,including dynamic management and the application of EVA in the budget.On the theoretical analysis,this paper analyses the dynamic budgeting system based on EVA based on the related theories of budget and EVA,thus the structure is roughly discussed.Case analysis is a focus in the study of this paper,first of all,we discuss the case company-YL company's profile and its current budge making system,and build a dynamic budgeting system based on EVA to solve the problems existing in the current budgeting system.At last,we take the company's budgeting of 2015 for example,to discuss the system with the specific budget data for financial and non-financial dimensions of budgeting and variance analysis,and evaluate and analyze the application of the new system to verify the effectiveness of dynamic budgeting system based on EVA.Using EVA concept and dynamic budget management idea into the budgeting system has certain scientific rationality.The study of this article will help to improve budgeting system in our country.