Construction Of ZY Company's Comprehensive Budget Management Oriented By EVA

Nowadays,China has experienced the rapid developing economic environment and the domestic economy reach to a 'new normal'..The proposal of supply-side structural reform raises stricter requirement to our medium and small enterprise's adjustment of industrial structure.The proposal also aims to explore and employ more scientific management methods.However,the existing system of integrated budget management exists many issues,such as the short term-oriented budget objectives;the potential friability among the budget management system and the superficiality of the implementation;Regarding to all these factors above,the existing system can no longer adapt to the modern enterprise,as it cannot satisfy the needs of the organizations.Therefore,many scholars and practitioners actively explore how to fix its bugs and upgrade the system.From the initial attempt such as moving the attention from activity-based costing to a more strategic perspective,now more developers shift their research direction to the economic value added(EVA).Among the modern enterprise management,the expectation to senior management is not simply to maximize the profit,but to benefit the shareholders,to create more value and eventually to achieve sustainable development for the enterprise.EVA is a measurement of performance management and it considers both the cost of capital and the enterprise's traditional cost index.EVA stands on the point of both non-financial indicators and the financial index to evaluate the enterprise's development.Currently,in China,EVA is frequently used in the valuation of state-owned enterprises.Nevertheless,Chinese scholars innovatively propose to combine EVA with the traditional comprehensive budget management.In order to adjust the existing budget,using EVA measurement as the basis of the comprehensive budget management,this combination enables senior manager to build a long-term perspective and to consider the enterprise growth potential,as well as its future strategies.This report selects the state-owned listed companies ZY Company as the research object,completes design rules and optimization on the comprehensive budget management system based on EVA through the reference of the literature and case study method.This report contains six branches.Firstly,it states the research background and the research significance.It also describes the related research at home,abroad and the research framework of the report.Secondly,it analyzes and summarizes the related theory and applies to the case study.Moreover,it elaborates the theoretical basis,introducing EVA to the basic theory of comprehensive budget management.Next,the research paper analyzes the background of ZY Company and the current situation budget management in ZY Company.The severe problems existing in its budget system and the necessity to optimal design ZY Company's budget management were also discussed.Fourthly,as the main body of the report,to begin with,it builds an indicator system for the comprehensive budget management system based on EVA performance measurement,and then it discusses the feasibility to build a comprehensive budget management system based on EVA and the concrete methods.Furthermore,there is a further discussion about what efforts still need to be made in order to better perform EVA oriented enterprise comprehensive budget management.Finally,a conclusion is added at the end of the paper.