Application Of Cost Motivation Budgeting Control

Cost motivation budget control is a cost budget management method proposed according to the problems existing in enterprises in our country, based on operation cost management and total budgeting management.The paper describes the design idea and the management application of the cost motivation budgeting control, but also describes the problems concerned in the application. The practical case applied in Shuguang Engineering and Technology Services of Liaohe Oilfield shows the effects of cost motivation budget control. Firstly, it helps the administrative authority to find out the basic reasons of resource consumption. Thus, the administrative authority can target to seek ways to reduce costs. Secondly, it is helpful to improve traditional cost budget. Thirdly, it provides an accurate basis for the enterprise performance evaluation and effectively improves the management level. At present, the conditions that enterprises in our country apply Cost Motivation Budgeting Control are available.