Study On Activity Based Budgeting Management Of Food Enterprises

Activity-Based Budgeting (ABB) is a kind of ABCM based on the new budgetmanagement method, along with the enterprise management more and more enterprisemanagers begin to pay attention to activity based budget management. In recent years, foodindustry due to the food safety issues continue to emerge, more and more attention on thequality and safety of food and attention are increasingly stringent, so the industry competitivepressure increases. Companies in order to build and develop long-term, not only need toimprove product quality, but also need to explore the issue of corporate governance and howto effectively control economic activity, to find suitable cost control and accounting methodsfor companies themselves is particularly important. So this paper attempts to apply theadvanced budget management method-ABB in food enterprise, to improve phenomena thatfood enterprises’ budget is off the strategic target, and they put too much emphasis onfinancial indicators, and to reduce the distortion of budget and other financial problems.The food enterprise as the research object, in carries on the theoretical analysis and theactivity based budget management, to study the implementation of activity-based budget foodenterprises, and establish a system according to the basic theory. First of all, the paperanalyzes the research background and significance and summaries the research status at homeand abroad, elaborates the theory of activity-based costing, activity based budgeting, andactivity based budgeting theory and method, and the activity based budgeting and traditionalbudget of a comparative analysis, a clear operational advantages and characteristics of thebasic budget; Secondly, according to the present situation of budget management in foodenterprises and the characteristics of the industry, the necessity and feasibility analysis on theimplementation of activity based budgeting food enterprises; Then, by constructing foodenterprises to implement activity-based budget management system, including the activitybased budgeting, adjustment, implementation, control and performance evaluation, accordingto the specific food enterprises, division and confirmation of its operations and the operationscenter, analysis of work motivation and causes of resources, operational balance and financialbalance a budget, and in strict accordance with the preparation steps, in the matter and afterrespectively control analysis, the results of the implementation of assessment; Finally, in orderto effective implementation of activity based budget in food enterprises, some guarantee measures should be used from several aspects such as enterprise culture, organization,information communication mechanism and incentive mechanism, as the security measuresfor the implementation of activity-based budget.