Study On Overall Budget Management Based On Eva Of X Coal Enterprises

As the process of economic globalization continues,capital,technology and management have been accelerating throughout the world.Some companies have gradually introduced overall budget management into their operations in order to maintain greater profit margins in the fierce competition.Budget management has also evolved from a function that initially had only planning and coordinated production to a management tool that combines the functions of guidance,motivation,control,and evaluation.It has become the core of the management of many modern enterprises.But as the capital market continues to improve,enterprises gradually began to pay more attention to the value increment.And the traditional overall budgetary management is based on the profit objective,and it's easy to run the short term of the operation and undermine the long-term interest of the enterprise.As result,a new overall budget management is needed to guide the enterprise activities.The reason why EVA received wide attention in 1982 is that it can reflect the appreciation of enterprise value;that is to say,the max of EVA and the max of value of the company are essentially unified.Therefore,the combination of EVA and overall budget management can meet the needs of modern enterprises to increase value.This article first summarizes the studies of the overall budget theory,the EVA theory and the overall budget theory based on EVA,and then discusses the relevant theories of EVA and overall budget in detail.Based on the specific case of X Coal Company,this paper briefly introduces the basic situation of the enterprise,budget organization system,preparation methods,evaluation system,etc.Then,this article analyzes the defect of current budget system and the necessity and feasibility of combining EVA with comprehensive budget management.Further,this article also introduced in detail the construction and specificpreparation process of the X coal enterprise's overall budget system framework.The study of comprehensive budget management based on EVA has matured,but there are few domestic applications for this theory.X coal companies will inevitably encounter some problems in the process of applying the theory and need to continuously summarize and improve them in practice.