The Application Of Activity Based Costing Systerm In Budget Management Of Fuyu Oil Production Plant

With the rapid development of the science and technology and the changes in themarket,business pay more attention on budget management.So the budget management hasbeen the hot topic of management accounting research.Also because of the enterpriseproduction mode changing, the traditional budget management methods constantly exposedits shortcomings, So many scholars do a lot of research to improve the budget managementmethods.This paper mainly studies the budget management based on Activity-BasedCosting.Jilin fuyu Oilfield Company has a large number of funds,and its production process iscomplex.So the cost and production volume is unlikely to be a simple linear relationship, thetraditional budget management method is no longer applicable, but exactly in line with thebudget management method based on Activity-Based Costing’s application condition. So inthis paper, through on-the-spot investigation of fuyu Oilfield Company, interviewing allprocess of the production operation personnel, financial personnel, understanding the fuyuOilfield Company ‘s production and operation situation. Determining the level of activity thesecondary assignments and activity chain. To analyze the characteristics of each activity andthe actual situation, identify each resource agent, secondary operations and return it to thecorresponding resources, again through agent data about resource quantity, this motivationallocation rate to calculate the resources.The again to creative the previous research by usingthe three years’ budget allocation rate allocation rate to calculate the average rate. eventuallyget next year’s cost budget theory with practice, this paper not only presents a generalmethod based on Activity-Based Costing and calculation model, but also applied in theactual situation to show its feasibility.This paper mainly includes the following six parts: the first part is introduction, in thispart mainly introduced the background of topic, and the main research methods andinnovative points in this paper, the research idea and structure of the paper.The second partis the introduction of relevant theories, in this part mainly introduces the importance ofbudget management,Activity-Based Costing ‘s theories and the development background inour country.And the differences of Activity-Based Costing and traditional method.In thethird part,mainly introduce the problems now in the fuyu Oilfield Company.From here,I’ll combine my working experience to introduces the fuyu Oilfield Company ‘s necessity to doActivity-Based Costing.The fourth part and the fifth part is the focus of this article,introducing the calculation method of the design process and the Activity-BasedCosting,and the result summary in this paper, then simple evaluation and analysis of theresults.The last part is the conclusion, the paper ‘s introduction and the research conclusionof this paper and the prospect for the future.