Research On History And Prospects Of Enterprise Budgeting

Every perspective of management accounting is included implicitly to some sense in the scope of budgeting. Afterward of 1990's, enterprises in West think of prospect of budgeting management with disagreement, while some propose an improvement of traditional budgeting adaptive to environment changing, and others attempt to"abandon"budgeting in their arguments. Where shall we go under such confused debate, and what is the value of this debate for the budgeting practices of Chinese enterprises? These issues act as a motivation for my research in the theory of budgeting management. Another reason for writing this dissertation is to explore the interactive relation between organizational structure and budgetary management, and further on this basis advance proposals on establishing modern enterprises in China. The dissertation includes five parts with seven chapters. Part I (Chapter I) introduces background and purposes of this research, main issues discussed and the framework of this dissertation. Part II includes Chapter II.In Chapter II, The development of budgeting arose in the context of American modern enterprises, experienced phases as initial phase, growth phase and the phase of tending to mature. The management target for budgeting moved from the financial resources based on inventory and cash flows in the beginning to expanded resources of a whole organization including human resources and information resources. Meanwhile, its functions moved from the controlling function in the earliest stage to current functions with a combination of planning, performance evaluation, controlling, coordination and motivation. The essence of management of budgeting lies in the"centralized control under decentralization of authority and responsibility", and the interaction of management of budgeting and M Mode organizational structure. Organizational innovation is a fundamental driving force for the generation and development of new theory and methodology of budgeting, which on the other hand guarantees the new organizational forms and structures to operate stably in good order and with high efficiency.Part III includes chapter III, IV, V.In Chapter III, the author analyzed the strategic budgeting and Activity-based budgeting in improving traditional budgeting. Strategic budgeting acts as a solution to the compilation of budget from strategies through strategy maps and the...