Study On The Value Chain Budget Application Of LN Manufacture Corporation

In today's market environment,companies in the increasingly fierce competition,the role of cost control for enterprises is very important,LN in manufacturing company is also in the fierce competition of urgent want to reduce their costs,so the company carried out the budget management,but due to the external competition is fierce,the original budget is very limited to the promotion of the cost control lack of strategic guidance value management concepts backward,neglected,budget management mechanism is not sound,budget assessment ignore non-financial indicators and so on defective parts in preliminary,so the company is currently the most concern is how to reasonable use of resources,realizing the maximization of enterprise value,reasonable allocation of resources is the concerns of the company.The combination of the value chain and the comprehensive budget management is the effective solution to this problem,the comprehensive budget management using the value chain of the value chain management method,from the direction of the control cost drivers to pay attention to the cost budget,to strengthen the strategy of enterprise function and control function.It has played a certain role in the rational utilization of enterprise resources.Of this thesis on the value chain,comprehensive budget,the value chain concept is reviewed,such as comprehensive budget for the combination of the value chain and the comprehensive budget may is analyzed,and compared with the traditional budget,make the benefits of value chain comprehensive budget more highlighted.Made in LN the internal value chain the comprehensive application of comprehensive budget,has been clear about the basic value chain activities including sales operations center,production center,purchasing activities center,after-sales service operation center four parts,auxiliary value chain activities including human resource management operations center,technology development center,logistics center,financial operations center four parts.In budget preparation process,the detailed analysis on the company's value chain,divided into specific operations center,for homework assignments are detailed in the center of the division,the original according to the classification of sector allocation expenses shall be carried out in accordance with the operation center classification.According to the budget cost of specific operations,we can know the budget cost of each operation center.According to the budget of operation center,we can prepare the budgettable of product cost.A better analysis of the cost of the product can be made by comparing it with previous ones.