Research On The Activity-based Budget Management Of The NO.3 Oil Production Plant Of Zhongyuan Oil Field

With oil prices continued to decline,oil reserves of slow growth,oil and gas development technical difficulty,increasing investment and the degree of risk,facing serious internal and external form,oil company will optimize the exploitation of oil and gas field,reduce cost of oil exploration.With the continual development and maturation of the theory of Activity-based Cost and Activity-based Costing Management,Activity Based Budget arises at the historic moment.Activity Based Budgeting take works as the foundation,according to "products consume activities and activities consume resources" principle,which could clearly reflect the enterprise resource consumption.The combination of Activity-Based Budget and production practice has important significance to strengthen cost control and improve management level of oil production plant.The author through the operation of the basic theory of the budget system understanding,as well as the detailed analysis of production of the NO.3 Oil Production Plant,it can be concluded that the operation of the Activity-Based Budget on the NO.3 Oil Production Plant is feasible.Firstly,the homework introduced the basic theory of the Activity-Based Costing,the Activity-Based Costing Management and the Activity-Based budget.At the same time,the paper analyzes the characteristics of the NO.3 Oil Production Plan which is located in the exploitation of oil and gas industry;secondly,this paper analyzed current characteristics of budget management and the existing problems of the NO.3 Oil Production Plan from the aspects of organization,preparation method and assessment and analysis.Then it is concluded that the necessity and significance of the third oil production plant of the application of Activity-Based budget.Then the paper introduced the Activity-Based budget into production of the NO.3 Oil Production Plan.With detailed work division and cost driver analysis as the foundation,this paper constructed the budget management and application system in oil production plant,including data estimates,preparation of the statements,data adjustment,variance analysis and performance assessment of several aspects,which would provides a new idea for the NO.3 Oil Production Plan of cost control.