Research On The Application Of Comprehensive Budget Management In Cost Control

Since the melamine incident in 2008,the reputation of domestic dairy enterprises has suffered a major blow.At that time,it is worrying that the quality problems of domestic consumers for domestic milk powder did not disappear with the end of the incident.Through statistical data,we found that the annual growth of domestic dairy consumption in recent years is about 8%,while the annual growth of domestic dairy production is about 5%,With the development of global economy,China has signed free trade agreements with New Zealand and Australia successively.Tariffs on New Zealand milk powder and Australian milk are almost zero.Especially since the China Australia free trade agreement came into force on December 20,2015,mature foreign dairy enterprises have entered the Chinese market in large quantities,and the domestic dairy industry has been greatly impacted.For example,in a dairy farming group,the price of raw milk fell from 4.25 to 3.90 in January 2016,down 8.3%,and the 16-year average price was 3.67,down 13.6% compared with the 15-year average price of 4.25,which makes the development of dairy industry face great challenges.How to improve the confidence of Chinese people in domestic milk powder,how to build the cost advantage relative to the international brand on the premise of ensuring the product quality,has become the main way for domestic dairy enterprises to break through the dilemma.In the environment of intensified competition and reduced product price,cost control is the only way for the healthy development of dairy farming industry and the improvement of management performance.This paper uses the method of combining literature research and case analysis,first describes the research significance,research ideas and methods of company a,then systematically introduces the theoretical basis of comprehensive budget control,value chain analysis and activity-based costing,and analyzes the specific research situation of the three,and then takes company a as the specific object of study,This paper mainly introduces the basic situation,management problems,organizational system and business performance of company a,and combs the main problems in the actual operation and cost budget control of company a,such as no systematic financial business control system,the function of financial department can not be fully reflected,the purchase price comparison is only in form,the feed cost control is not meticulous,and the main equipment purchase On the basis of further analysis of the problems such as being monopolized,we have formulated management measures to strengthen the cost control system.First,management measures at the enterprise level are directly connected with the cost drivers under the enterprise value chain and activity-based cost.The second is the management system at the financial department level,which is highly connected with the previous enterprise development goals,so as to achieve the target connection between the business and the financial department.After the index system is determined,the company has realized the path and measures of cost control of enterprise a according to the design.Through a series of measures such as the organizational structure,management functions,procurement system,cost accounting and the construction of financial reimbursement system,the company has established the management structure of comprehensive budget cost control of company a and put it into practice.After applying the above management methods for a period of time,we have made a precise comparative analysis on the operation of the ranch,and found that the feed cost has been effectively controlled or cost control solutions have been found,the daily material procurement has been reduced by nearly 20% compared with that before control,the financial supervision and assessment of the business department has been significantly improved,key spare parts or components have been partially localized,and employees have been reimbursed The system has been strictly implemented.The financial revenue and expenditure accounts are clear and the management is in place,which solves the long-standing phenomenon that the enthusiasm and initiative of stateowned enterprises are not strong.The enterprise goals and employee goals are basically consistent,and the enterprise value management is preliminarily realized.The innovation of this paper is to take the value chain and activity-based costing as the starting point,combined with the actual situation of company a’s management,to design the dual management mode of company a’s enterprise and financial management.The realization of the dual management mode makes the employee’s interests consistent with the enterprise’s management system and enterprise’s objectives,and at the same time,through the process and standardized operation,greatly reduces the Because of the quality control problems brought by the operation instability and individual differences,the quality is guaranteed and the impact of repeated labor is reduced.On the basis of this,the value chain indexes such as equipment purchase and maintenance,cow purchase and breeding,alfalfa planting and activity-based cost driver indexes are designed,which realizes the high integration of the business department and the financial department of the company and serves as the main body of the company Business provides strong support.