A Study On The Problems And Countermeasures Of The Cost Budget Management In A Forest Farm

The cost budget management is an important part of the comprehensive budget management.A scientific and effective cost budget management has an important effect on reasonable allocation of resources,promoting information communication between internal and external of enterprises,and it also plays an important role on enterprise performance evaluation.Recently,the macroeconomic environment is not very optimistic,as the industry's leading enterprise in the forest industry,A forest farm has a faster rising speed on cost than revenue,which lead to a compression on profit margins.What's more,there are still many defects in cost budget management of A forest farm.So,it is important to perfect cost budget management of A forest farm.Cost budget management of A forest farm was taken as a study in this paper after reviewing on studies on cost budget management systematically.This paper analyzed the influence factors of the cost budget management based on control theory,information asymmetry theory and contingency theory.I found out four major problems on the cost management of A forest farm by investigations-the budget organization is not perfect and the unreasonable division of labor on cost budgeting is not scientific,the execution stage of cost budget is lack of monitoring and the execution is weak,the cost budget evaluation system is not reasonable.The main reasons for these problems are:Firstly,A forest farm does not pay enough attention to cost budget-the budget system and organizational structure is not perfect.Secondly,the company ignores the overall budget-general staffs are not active in the budget participation.Thirdly,the company ignores the whole characteristic of budget-does not pay enough attention to the execution and evaluation stages of cost budget management,and fails do analysis of concrete problems.Last,the company fails to to chose appropriate budgeting methods and evaluation standards according to different characteristics of different costs.In view of the problems and reasons above,and considering the characteristics of forestry industry and A forest farm,this paper suggests that the budget organization should be improved,the budget system should be improved,the control and execution of the budget execution process should be strengthened,and the cost budget evaluation system should be improved.