Study On Application Of Comprehensive Budget Management In ABC Company

With the development of economy and capital market in China, comprehensive budget is implemented by more and more companies. As the important management tool, comprehensive budget can assists company to allocate enterprise resources, control the use of resources and evaluate the performance. For the requirement of internal management and capital market, ABC company has implemented comprehensive budget too. This paper collected the theory of comprehensive budget and other budget theories developed after comprehensive budget. And after compared these budget theories, this paper discussed the suitability of comprehensive budget for ABC company and the use for reference from other budget theories. Meanwhile it introduced the good budget management experiences of the successful company and make them useful for ABC company. In the process of implementation of comprehensive budget in ABC company, there were some problems and lacks which has influenced the effect of comprehensive budget. They included how to set the budget target, adjust budget, forecast the performance, and analyze the differences. This paper tried to settle these problems by using some management tools like Balance Score Card, Truth-inducing Budget Scheme etc; assisted ABC company to combine the budget and strategic goal; and made use of financial index and non-financial index to lead ABC company to realize the strategic goal. At the same time this paper emphasized the approaches and methods to achieve the budget target to make the budget become the tools to lead company operation. In addition this paper introduced suppliers'budget management which makes budget management extend out the company and ensure the realization of the budget targets.