The Establishment And Application Of Total Budget Management For Medium And Small Petrochemical Enterprises

Based on the commitment to WTO, Chinese retailing price of refined oil has been released Dec 11 2004, and wholesaling price will be open at the bottom of this year. Foreign petrochemical corporations begin entering into Chinese market. For the safe of China oil resource, medium and small petrochemical enterprises have to function more effectively and heavily. Comparing to large petrochemical companies, medium and small petrochemical enterprises have lots of disadvantages, especially on the aspect of budget management, so it is necessary to study on how to improve of the model of budget management.Applying the combination of theory and practice, the combination of Quantitative and qualitative, this paper has build a new budgeting model for medium and small petrochemical enterprises, which includes previous alarm, in-time control and after evaluation to budget. With uniting operation management and budgeting ministration, this model includes sale budgeting, cost budgeting, capital budgeting and financial budgeting. This model is a dynamic budgeting system, which uses cost-diver analyzing, and takes cost budgeting as the central point.The paper has six parts. The first part is foreword, which introduce the background and direction of the research. The second chapter analyses the characters of medium and small petrochemical, and find out the disadvantages of budget management now. The third chapter gives the introduction about the budgeting theories,and which are the foundation of this paper. The fourth part is the main chapter of the whole paper, which makes the total budget model of medium and small petrochemical enterprises. The sixth chapter will draw conclusions to this paper.