Case Study On Budget Slack In XH Group Company

As an effective way for enterprises to achieve management,comprehensive budget management is an indispensable tool for enterprises to pursue stability and growth and promote the realization of the group's strategic goals.With the complexity and volatility of economic development and the constant changes in the market,enterprises face various challenges.As a management control method,comprehensive budget management can effectively allocate enterprise resources,improve production efficiency,and play an increasingly important role in achieving enterprise management goals.It can be put into the height of enterprise management mechanism and strategic management.However,in the practical application of comprehensive budget management,some problems have arisen that do not match the development of enterprises,and budget slack is one of the "persistent problems".It limits the function of budget resource allocation and affects the management and development of enterprises.It can be seen that only by solving the problem of budget slack in enterprises can the role of budget management be fully played,the company's budget goals are promoted,and the company's development is fast and good.This paper summarizes and combs the research on budget slack at home and abroad,and believes that budget slack is the self-interested behavior of the budget preparers when the enterprise prepares the budget.In order to get better performance and higher evaluation,the budget management role is reduced.This paper analyzes the reasons of budget slack from the aspects of principal-agent theory,information asymmetry theory and behavioral science theory,and expounds the theoretical reasons of budget slack.Taking XH group company as an example,this paper discusses the current situation of comprehensive budget management and budget slack of XH group company,and puts forward some countermeasures and measures to solve the budget slack of XH group company,such as improve scientific indicator evaluation system,build a budget culture based on human-centered thought,strengthen the evaluation of subsidiary companies budgets,give full play to the role of multi-sector and cross-process auditing,and promote the level of information-based construction.It is expected that budget slack will be gradually reduced,comprehensive budget management will be improved and the enterprise comprehensive budget management system will be optimized in practice.