The Comprehensive Budget Management Research In S Enterprise Under Evaluation Of Economic Value Added

Comprehensive budget management was produced in early 1920 s.After constantly changing as well as development,nowadays it becomes a sophisticated management system which includes program,coordination,examination instead of being a tool that coordinated development and production planning for enterprise.As a consequence,it is now sitting the heart of enterprise management system.As the development of capital market and economic,the manufacturing and operation goals in enterprises is changing into achieving the maximize value for shareholders.Therefore,analytical skills of the key factors that influenced value creation have gained the recognition.Economic value added(EVA)is economic profit that is net operating profit after tax deducting weighted average capital cost(include equity and debt capital cost).It is first coming up with Stern Stewart—a American management and capital consulting firm which is globally renowned.Since then,this index is widely used for comprehensive evaluation that measured business performance.Compared with traditional evaluation index of budget,EVA can make the reflection of enterprise economic efficiency and the ability to create value more real.From different angles—both in domestic and abroad,this thesis explains the theory about budget management,EVA as well as the comprehensive budget management which is based on EVA,at the same time,it also analyzes problems like how EVA changed comprehensive budget management system from value management,agency by mandate and residual income.After all steps above,combine with the practical situation of S co.,LTD,established a budget management of EVA which is beneficial to the development of enterprise.This thesis also analyzes the mode of traditional budget management to S co.,LTD,and discovered that the mode above is deviating the main development strategy of the enterprise.As a result,it failed to promote the plan,coordination,assessment and supervise.What's more,the mainly procedure such as budget goal,organizational system,process for budgeting and merit system are needing improvement as well.Thinking about the environment enterprise is in and the ability of enterprise,the thesis is going to solve the problems above about S co.,LTD by establish a comprehensive budget management system.