Study On Budgeting Control System Of Activity-based Costs

The rapid development of science and technology and economic globalization,enterprises are facing increasing pressure of competition, cutting costs for thecompetitiveness of enterprise development is still an important means. Traditional by directlabor or the hour, based indirect costs distribution methods have been unable to provideaccurate costing information and even a serious distortion cost information anddecision-making. In addition, as consumer demand and diversification, personalizationbusiness opportunities in gaining profits also further intensified competition amongenterprises. In view of the above reasons, the traditional in trading or quantity to the cost towork for the cost in cost accounting scientific the inevitable trend of development. The costof work has begun to be adopted some companies. At the same time, facing the fiercecompetition, strengthening enterprise management of budget, the functions, and expand itsscope is a must. For enterprise management functions related to strategic objectives, in theprocess, more emphasis on comprehensive coordination within the enterprise management,stressing the business plan, organize and control of other functional integration of thebudget management functions will be from a single plan and control the development and isnow planning, controlling and coordinating, motivating, evaluation and functionalmanagement mechanism. To make the relevant management functions of more adequate, anew theory—activity-based budget was born, the work related to this theory applies to thebudget of the areas of a new theory and methods.This article firstly introduced the concept of tradition budgets and operation costs ofthe relevant concepts in the budget, on the analysis of the traditional budget itself isdifficult to overcome defects basis, the activity-based budget and tradition in contrast,traditional budget has put too much emphasis on financial nature, can’t very good andenterprise management and strategic aim of integrating. Activity-based budget is toovercome this weakness, and in its own unique superiority, good for the daily managementservice. Activity-based budget as a scientific method has been accepted by the theory andpractice. On the one hand, it would not only the shared responsibility and obligation to staffto control his behavior of staff performance, the realization of goals, but it also provides forthe work of the more real, including the service level of influence. On the other hand, itcould help enterprises to know what products or services consumed by your work, thus enhancing supervision and control the flow of the budget really real earnest. Finally, theproposed budgets control work in the framework, and its mode, the activity-based budget inpractical applications, problems, and give an example. Then provide instruction in the ourcountry application within other businesses for operation cost budget control mode.