Research On Improving The Budgeting Appraisal Of D Machinery&Electric Co.Ltd

As an important tool for the allocation of enterprise resource and theachievement of strategic objectives, budget management has been widely used inmodern enterprise management. Budgeting appraisal, which is a significant link ofbudget management, guarantees the implementation of budget. Because of the lack ofgood budgeting appraisal, budget management of many companies becomes a mereformality, losing control and incentives. This research takes improvements onbudgeting appraisal as the the object, and it is of great significance for promoting theexecution of budget and accomplishing the target of budget, making budget serve thestrategy better.D Machinery&Electric Co.Ltd is a company whose main business is productionand sales of enamelled wires. Facing fierce competition and pressure fromtransformation of industrial structure, the company need a good budgeting appraisalsystem to stay ahead of the competition. However, since there are some defects in thebudgeting appraisal system, such as the poor basic preparation work, the missing ofagency in charge, unscientific indicator system and incentive program etc., the effectof budget management failed to meet the expectation. Based on existing research andrelevant theories, this article analyzes the current situation of budgeting appraisal inthe company, and gives suggestions for improvement on each link of budgetingappraisal, including preparation work, setting agency in charge, identifying theobjects and targets etc., according to the inductive principles of budgeting appraisal.And the author uses Balanced Score Card and Analytic Hierarchy Process to reset theindicator system and redesign the incentive program combined with budgetingappraisal. The effect of suggestions is introduced at the end of this article.This article aimed at providing comprehensive, specific and feasible measures ofimproving budgeting appraisal, hoping to promote the effect of budgeting appraisaland the budget management level of D Machinery&Electric Co.Ltd and similarcompanies.