The Study Of Budget Management In Yanji Cigarette Factory

The tobacco industry is a big one in our country in taxation and profit and an important industry in the national economy. At present many of the tobacco enterprise are in debt and consumption of raw materials is high and the profit rate, the rate of assets preserving and increasing the value and the rate of circulation of liquid assets are low. In the acute competition Yanji Tobacco Factory must implement the budget management so that to realize effective usage of the recourses, increase the economic efficiency of the enterprise and strengthen the competitiveness of the enterprise. Therefore the study of the implementation of the budget management of Yanji Tobacco Factory has very important realistic significance.The budget management is a quantitative expression of the enterprise's operation plan and expectation and it is the systematic and detailed expression of the production and operation of the enterprise at a certain period in the future in the form of currency and other quantitative forms and in order to reach a certain goal to make reasonable arrangement of limited recourses and it is a tool to control various economic activities. The paper discusses the budget management of Yanji Tobacco Factory in terms of the following aspects.PartⅠintroduces the basis conception and role of the budget management, capital budget, finance budget, fixed budget and flexible budget, incremental budget and zero-base budget, annual budget and moving budget and their preparation and thinking and characteristics and the focuses of the budget system in various market environment and enterprise's life period. From this the papers takes out the long suits and weaknesses of various budgeting. Yanji Tobacco Factory must select the useful method in preparation of budget in accordance with the features and needs of its own business and the greatest attention must be paid to combination of various methods.PartⅡintroduces the survey of Yanji Tobacco Factory and analyzes the finance management and budgeting under the long-term planned economic system the factory implemented the traditional production and operation plan and the finance management was limited to preparation of finance plan or the annual fund revenue and expenditure. In 2004 the factory set up the Budget Management Committee. The budget management went through non-existence to existence, and must a start and the budget had no clear strategic guidance of the enterprise and attention was paid only on the short-term activities of enterprise and neglected the long-term activity of the enterprise and, as a result, the short-term budget index did not fit to the long-term strategic target of the enterprise and the weakening of budgets of different periods and the implementation of budgets did not help realization of long-term strategic target and, as a result, the budget management hardly reached the expected effect. Therefore we can see the necessity and problems in implementation of the budget management.PartⅢelaborates the improvement plan of the budget management of the factor and with examples explains the methods and steps of establishment of the budget management of the factory and studies the time of establishment of budget management, the contents of gross budget and subbudget and how to set up effective budget managemental control system and explains the range, classification and sorting out of basic data before preparation of the budget. The budget management of Yanji Tobacco Factory has 3 aspects: operating budget, finance budget, and special budget of cigarettes. The operating budget includes the sales budget of cigarettes, the production budget of cigarettes, cost budget of production of cigarettes, expense budget etc. the finance budget includes the gain and loss budget, assets liability budget, cash flow budget etc. the special budget includes important investment budget, new product development budget etc. Organic combination of the three comprehensive balances from the overall direction, the budget management Committee and related responsible department fix to make the annual general operating target and budget plan through communication. It is supplemented by the factory's budget control plan and the control is carried in the whole process of the management and it provides a strong support for implementation of the budget.PartⅣelaborates the important aspects in the process of budget management of the factory and feasibility of the budget target, control of loosening of budget, avoidance of change of the target, combination of the annual budget and the long-term budget and explains how to set up the budget target in the scientific and reasonable way. As a result, the enterprise's present target of budget will focus on the long-term development of the enterprise and arrange recourses in an optimal way and avoid a short-term economic behavior. Although most of the majority of enterprises implement the budget management more or less, yet different basic management plays different promotive roles for budget management and the final effects are different. Therefore the budget management of Yanji Tobacco Factory must coordinate with other management and do well the supporting work for implementation of budget management such as in cultivation of personnel and control of process of implementation of the budget management so that form a concentrated force and systematically and all-roundedly enhance the operation and management level of the enterprise.