Application Of Activity Based Budgeting In Production Budget Management Of MA Drilling Company

With the fierce competition in the oil engineering technology service market,the growth of the world's proven reserves has slowed down obviously,and the oil drilling industry is also demanding more and more production costs.Through the effective control cost of the budget management,the enterprise can find the source of the cost,reduce the cost in every link of the production process and enhance the profitability of the enterprise,so as to ensure the sustained and healthy development in the fierce market competition.Therefore,drilling companies have more and more pressure on budgeting management.Many enterprises in our country use the traditional method of budgeting,that is,the incremental budget on the basis of the last year's cost data,MA drilling company is one of them.The operating base budget(ABB)is based on the "product consumption operation,the job consumption resource",and forecasts the demand and resource demand by understanding the job motivation and the understanding of the resource drivers.Taking operation as the core of cost budget and focusing on the analysis of cost drivers,it is easy to analyze the end of the indirect cost.Under the traditional budget law,the indirect cost is allocated according to the proportion of working hours,fixed hours and production hours.The basic budget of operation can provide more scientific and accurate cost information.Especially for enterprises with complex production processes and larger indirect costs,the activity based budgeting will be more obvious than the traditional budget.Therefore,the application of activity based budgeting in drilling companies is the innovation of budgetary cost management to solve the problems existing in the current budget management system of the company.This article will take the MA drilling company's production budget management system as the research object,taking the MA drilling company's activity-based cost management method for the production budget management method as the research topic,which is divided into six chapters.The first chapter describes the background of this study and the status of domestic and foreign research.The second chapter expounds the meaning and content of enterprise production budget management,the basic principles and main steps of activity based budgeting.The third chapter will elaborate on the production budget status and evaluation of MA drilling company.The fourth chapter is the application of activity-basedcosting to the production budget management of MA drilling company and the design of operational process.Taking a project department as an example,the operation process budget is compiled and the budget of operation based and the actual cost are compared and evaluated.The application can clearly reflect the resource consumption of various operating processes,help to analyze the cost difference,find out the blind spot of drilling cost control,and find out the optimization and improvement measures in time.The fifth chapter discusses the guarantee measures of drilling company's operation basic budget.The sixth chapter is the conclusion and the prospect.This paper combines practice and theory to prove that the budgeting can reduce the difference between the budget and the reality,and provides a reference for the improvement of the enterprise production budget management system.