Study On The Causes And Countermeasures Of Budget Slack For ZT Construction Company

In the practice of enterprise control in China,with further application of all-round budget management,the budgetary slack phenomena of different by companies generally exist,which makes budget management result deviate from budget goal.As a result,it will exert detrimental economic influences on corporations and will affect the long-term survival as well as future development.Therefore,budgetary slack serving as side effect in enterprise management has attracted wide attention in academic circles and in accounting fields.Comprehensive analysis on budgetary slack of ZT construction company is,by means of theoretical analysis,financial analysis and empirical test,conducted in this paper.Firstly,all-round budget management process is analyzed in detail.In the next place,the current situation of budgetary slack is analyzed from the following two aspects—financial data and all-round budget management process.What's more,negative effect of budgetary slack on ZT construction company is analyzed.Finally,cause of formation of budgetary slack is identified via financial index and empirical study.The conclusion in this paper show that budget participation? information asymmetry and budget emphasis are mainly responsible for budgetary slack of ZT.Thus,homologous way to deal with a situation is put forward.Make a reasonable budget participation system.The performance evaluation mechanism of balanced scorecard was introduced.Budget information collection channel ought to be consummated.Introduce reputation incentive mechanism.In this way,all-round budget management of ZT can play a positive role in implementing company strategy as well as in achieving resource allocation.