Research On Budget Management System On The Basic Of TDABC Method

In recent years,the "world factory" transfers to Southeast Asia,weakening Chinese manufacturing's advantages,impairing private consumption's motivation,leaving enterprises facing with severe overcapacity,which leads to unprecedented challenges for traditional manufacturing industry.Enterprises started to ask for efficiency from management.At present,enterprises management concept has gone deeply into activity and procedure levels so the integration of activity-based costing and management tools is becoming a trend.Throughout domestic and foreign literature,foreign research on activity-based budgeting already has been for a long time and achieved fruitful results.Domestic research starts late,more of which has no development or innovation of related areas and integration research of theory and practice.Therefore,this paper chooses to subdivide a field from the activity-based budgeting: Putting forward the time-driven activity-based budgeting management system by combining TDABC and budget management system.First of all,this paper defines and compares some related concepts such as TDABC,ABB,TDABB,etc.Then,elaborates the budgeting principles and operation procedures of TDABC and builds theoretical framework of TDABB,constructs TDABB management system based on the analysis of its advantages and designs activity-based grading budgeting model.Then detailed designs activity-based grading budget table and analyses budget variance and illustrates the application of the budget results from variable activity-based costs and fixed activity-based costs.This paper selects the continuous process of advanced manufacturing —— FH company as the case background,discussing the application in practice of TDABB management system.Then taking the auxiliary production activity as an example,demonstrates TDABB operating procedures and analyses budget variance and budget control from aspects of idle capacity and efficiency.At last,this paper analyses the applicability of TDABB by combining enterprise current situation in our country and comes to a conclusion and enlightenment.