Application Study Of Activity-based Costing Budget In A Company

With the continuous intensification of market competition,the pressure faced by the development of enterprises is also increasing.The excessive consumption of resources makes the operating costs rising.In order to maintain the competitive advantage of enterprises and stimulate the vitality of enterprises,the innovation of management methods has attracted the attention of enterprises.Budget management,as one of the important ways of enterprise management,is more and more popular with managers.As a new method of budget management,activity-based costing budgeting deeps production management to the level of activity,improves the level of budget management through the analysis and control of activity,and achieves the goal of reducing cost and increasing efficiency of the company.On the basis of literature review,the author uses the method of combining theory with practice,takes A company as the research object,analyses the current situation and existing problems of A company's cost budget management,and constructs the activity-based cost budget management system for A company.This paper analyses the current situation of A company's cost budget management,and finds that there are some problems in A company's cost budget management,such as unscientific cost budget management method,inaccurate budget preparation basis,inadequate budget control,inadequate budget analysis and imperfect budget assessment.The necessity and feasibility of implementing activity-based cost budget in A company are analyzed.Combining with the production and operation situation of Company A,the activity-based costing budget system is constructed.According to the principle of activity-based costing,"product consumes operation,activity consumes resources",the budget is compiled,executed,controlled,analyzed and assessed.According to the links: in the budgeting process,combined with the company's process,starting from identifying activities,activity centers and cost drivers,a prediction model of product activity cost,resource demand and value of resource demand is built for A company.In the budget execution link,the operation centers organize production and operation according to the approved budget,report the problems found in the execution process regularly,and provide valuable information for managers to make decisions.In the budgetary control link,in the process of implementing the activity-based budgeting,the company takes the activity as the control object,takes each activity level as the control center,and reduces the activity-based cost through the activity-based control.In the process of budget analysis,budget analysis goes deep into the operational level,and analyses the various operations of the company.By eliminating non-value-added operations and improving the efficiency of value-added operations,the production cost can be reduced.In the budgetary assessment link,the company should combine financial and non-financial indicators,take the whole company and the operation centers as the assessment object,so as to make the budget assessment more perfect.Finally,in order to implement the activity-based costing budget method smoothly in Company A,the safeguard measures are put forward.It is hoped that ABC budget will help the company achieve the goal of cost control and ensure the company's sustainable,stable and long-term development.