Research On Activity-Based Budget Management

Under the condition of market-oriented economy, as a participant and owner of benefit, That how enterprise can realizes the reasonable disposition of resource effectively, under the function of market, is universal matter concerned by each country under the condition of knowledge economy in 21st century . Budget management is the champion in disposition of resource with its sole of plan-oriented management pattern in market. Along with the development of market economy and the change of internal and external environment of enterprise, the shortcoming of the traditional budget has exposed such as separation with the developmental strategy of enterprise, the unreasonable establishment foundation , inconvenience for control because of dividing the responsibility center according to the function , so on, and these questions have restricted the function of budget management seriously and result the disadvantageous influence to operating efficiency. At the same time, the appearance of new business environment and the application of activity-based cost has impelled the development of budget management theory, and has opened up the vision of budget management field , which needs to research the budget management from the angle of activity. Combining the activity-based cost with the budget management and launching the research to the activity-based budget, has certain significance both of theory and practice.Activity-based budget is the product of activity-based cost and the budget management , is the compatible transformation to traditional budget management towards the change of competition environment . It develops in the 20th century eighties , has not become mature in many sides, and has not the perfect theory frame. It constructs the theory frame of activity-based budget from the request of environment, the confirmsion of the goal, the principle and the operating procedure in this article, and provides the elementary theory instruction for the question that whether the activity-based budget is suitable . With the direction of the theory frame, the activity-based budget can circulate effectively. The circulation of activity-based budget include the establishment, the control, and the evaluation . They are a dynamic circulation system. The circulation has solved the question that how to apply . During the circulation of activity-based budget , the budget slack is inevitable .It analyzes the budget slack from the budget participation,agent theory,game theory and prompting theory. It points out the negative influences to the enterprise and puts forward the proposal of reducing the budget slack. As a advanced management...