Activity-based Budget Accounting And Applications

At present, an essential problem facing strategic management of enterprise is that the carefully devised strategies cannot be effectively implemented. To solve this problem, many scholars have tried to use budget as tool for the strategic management. However, the traditional budgeting can not effectively link up with an enterprise's development strategy. This paper, with the balance card and value chain management, attempts to build a strategic management frame based on strategic budgeting and activity-based budgeting, and then mainly study the measures of its application in our enterprise.With the development of the society and economy, the great changes of operating environment take place inside and outside of enterprise. The science and technology develop and use widely, which the cost structure of product has substantive change, so the conditional distribution of expense does not provide the exact cost information even distort it which lead to make false decisions.Activity Based Budgeting (ABB) can help manager understand and manage activity and business process, and establish equilibrium measure and target system for every activity and business process, and take the target and responsibility in to the process's ratings system. Resulting analyzes and controls the budget carry out process and the result's evaluation.