Research On Dynamic Budgeting System Based On EVA For A Co.,Ltd.

Economic Value Added is a new budgetary method,which is the value of after-tax profit minus the cost of capital,which includes the cost of equity and bonds.Essentially,EVA is a new performance evaluation index which integrates economic profit,residual income and accounting adjustment.The combination of EVA and dynamic budget forms the value contribution model of the integration of EVA and BSC,which enables budget managers to take EVA as the core but not the only one in budget preparation,but to take into account other financial indicators and non-financial indicators reflecting business motivation.Based on the analysis of the relevant cases of Company A and the discussion of relevant literature,this paper establishes a dynamic budget management system matching the economic added value of its enterprise framework structure.First,the introduction.This paper mainly introduces the topics,including research background,research objective and significance,research content and ideas,research methods and innovations.Secondly,this paper introduces the theoretical basis related to EVA and dynamic budget,as well as the specific application of accounting adjustment in EVA budget preparation,and makes a comprehensive comment on the research status of EVA and dynamic budget.Thirdly,it introduces the implementation process of dynamic budget of A company,pays attention to the deficiencies of the budget preparation system of A company,and analyses the specific reasons for its emergence.Fourthly,introducing the dynamic budget of EVA,analyzing the feasibility and necessity of dynamic budgeting based on EVA,and putting forward the design of dynamic budgeting system based on EVA according to the specific situation of Company A.Based on the application analysis of the dynamic budget system of EVA,this paper takes 2018 as the budget cycle,compares the budget value with the actual value,analyses the differences to propose solutions,and puts forward the preparation method and specific application of the dynamic budget system based on EVA.Finally,this paper summarizes the whole paper,points out the shortcomings of the study,and looks forward to the future prospects of EVA.The innovations of this paper are as follows:(1)This paper not only studies the construction of the dynamic budget system of a specific case company,but also analyses the test of the optimization effect of the system.Through the implementation of dynamic budget evaluation system based on EVA,operation process and budget management guarantee implementation,make budget management more systematic and dynamic.(2)This paper combines EVA with dynamic budget structure,optimizes the original budget system,and applies EVA concept and dynamic budget concept to enterprise budget system.