Research On Budgeting Based On The Cost-Volume-Profit Model

With the deepening of market completely reforming,enterprises are in the rapidlychanging market environment,whether enterprises can meet the needs of market development and keep the continuous competitiveness in the market,the budget is playing a more important role.For the practical operation level,whether the budget can adapt to the objective development requirements of the enterprise,its preparation method is highly important.This article starts with the related contents of the comprehensive budget management,and represents a variety of budget preparation methods,combining with the knowledge of the Cost-Volume-Profit analysis,and puts forward the core role of the variable cost method in the budget preparation of related cases.In recent years,all industries are developing rapidly,if enterprises want to adapt to market demand,it is necessary for them to strengthen internal management,during which the enhancement of budget management is particularly important at this time.To take the market as the guidance,to strengthen the comprehensive budget management of enterprises,to establish the scientific budget preparation method of comprehensive budget management system of enterprises,will play a crucial role in achieving cost control and realization of strategic goals of enterprises.Establishment of enterprise comprehensive budget is to serve the strategic goal of the enterprise.Through evaluation of the production and operation of enterprises,we can establish a set of budget which is compatible with the enterprise and the future development,which may involve various aspects like investment,financing and business activities etc.Through the preparation of the budget,the operator can better coordinate and control the enterprise resources,thus achieve the strategic objectives of the enterprise through the implementation of the budget.This paper has described the general situation of the comprehensive budget management and various budgeting method;has studied the theoretical and practical meaning of CVP model;has compared the variable cost method with CVP model as the core,with other budgeting methods;has illustrated the important role of budgeting method,with CVP as the main part,in a life insurance company's budgeting.To adopt the budget management system with CVP model as the core,to introduce the concept of variable cost,can form a more effective budget management system and make the budget management more perfect for the enterprise mentioned in this paper.