Research On Improving The Budget Of Cost In CPIC Co.Ltd

With the development of market economy and the diversification of the internal and external environment, the drawback of budget management such as disjoint on company strategy, unreasonable budget planning, invalid control of responsibility center is exposed. These problems have bad effects on budget function and operational efficiency. Moreover, the business environment and Activity-based costing broaden the vision of budget management. It is an inexorable trend to survey budget management according to ABC.CPIC is a listed insurance company in China who is a leader in this industry. With the diversification of the internal and external environment, the profit is shrinking so that senior managers pay more attention to the level of internal control. But some problems such as unclear responsibility, planning centralization, lacking control tools and budget statements about different products hinder the process of carrying on comprehensive budget management. Firstly, this article reveals the drawback of budget management in CPIC. Then, It can establish a responsibility centre through breaking the line of functional department, regulate the subject who plan the budget, arouse the staff enthusiasm by using a decentralized model and make an import role on budget adjustment. Besides, ABB makes a possibility of building expense report about different insurance products, which plays a vital role on core-competitiveness. A case analysis is introduces at the end of the article.The article aimed at providing comprehensive, specific and feasible measures of improving budgeting management, hoping to promote the effect of budgeting management and the budget management level of CPIC Co. Ltd and similar companies.