Research On Problems Of Z Company’s Cost Budget Compilation

In recent years,with the continuous development of China’s cities and the increasing improvement of social living standards,drinking water quality standards are gradually improving,and water supply enterprises are facing greater cost pressure.For the sake of better long-term promising future,water supply enterprises must expand the profit space by saving costs.Z company is a traditional water supply enterprise,as an independent business entity in the market economy,facing the increasing cost pressure,it urgently needs to effectively manage costs and improve the efficiency of resource utilization.Comprehensive budget management is an internal control measure widely recognized by modern enterprises,and it performs significant functions in the planning,communication,coordination,supervision and performance evaluation of cost management.Budget-making is the starting point and important foundation of budget management.Therefore,improving the quality and efficiency of budget-making is an important way to help enterprises reduce costs and increase economic benefits.Based on the in-depth study of domestic and foreign literatures and basic theories of comprehensive budget management,combined with internal control theory and cost management theory,this paper takes Z Company as the research case and makes a centralized research on its cost budgeting management.Through on-the-spot investigation,sorting out the information about the cost budget-making of Z company,and consulting the process of budget management with the relevant personnel,some prominent problems are found out,such as unclear budget management system,imperfect budget management mechanism,inadequate supervision,and low level of information technology utilization.Analyzed the causes of these problems,this paper provides some practical solutions to ameliorate the cost budgeting management,including that establishing budget management committee,clarifying the responsibilities and authorities of all parties involved in the budget,improving the understanding of the importance of budget management,strengthening the training of budget-making related personnel,ameliorating the cost budget-making process,selecting the appropriate method to make the cost budget,standardizing the cost budget analysis work,modifying the cost budget assessment standards,strengthening the audit and supervision of the cost budgeting process and improving the information technology utilization level of cost budgeting.The research results of this paper can improve the budget management level and optimize the resources allocation of Z company,and also be worthy of reference for other water supply enterprises.