Research On The Comprehensive Budget Management Of K Company Based On EVA Theory

Comprehensive budget management since the 1920 s,and gradually become an important means of enterprise daily management and tools,but also gradually become the enterprise internal control system and the core work of the whole management process.Because in the traditional enterprise comprehensive budget management mode,the budget targets is established by the accounting profit as the guidance,this leads to when making the budget goal is usually a short-term sex,blindness and volatility,not give full play to the advantages of comprehensive budget management.The goal of overall budget management should be to focus on the long-term value maximization of the enterprise,not just the profit maximization.In 1982,Stem Steward management consultancy,puts forward the concept of EVA,it was assumed that EVA can more objectively reflect the real corporate value creation ability and the management efficiency,enterprises have the supervision and examination management system at the same time,also attaches great importance to the coordinated development,the concept of EVA is an important criterion for evaluation of enterprise production and business operation activities.To make up for the deficiency of traditional comprehensive budget management,scholars began to introduce the idea of EVA into the enterprise budget management.As an advantage of value management tool,EVA should not only be used in performance evaluation,but also should be applied in various aspects such as production management and investment management.Therefore,it is an important research direction to establish a comprehensive budget management system based on EVA.Based on K company as an example,this paper is intended to improve the comprehensive competitiveness and value creation ability,combining EVA and comprehensive budget management related theory,hope for K company recommendations to the improvement of the comprehensive budget management,promote enterprise comprehensive budget management mode of deepening reform.This article first summarizes the domestic and foreign scholars on EVA theory and the related research in the theory of comprehensive budget management,respectively from the enterprise value creation ability,analyzing principal-agent relationship of the EVA the improvement mechanism of comprehensive budget management.And combined with the actual situation of K company,found in the traditional K company comprehensive budget management mode,the existing budget goal setting value creation ability insufficient attention to the enterprise,budget control,relaxation,etc.In regard to these problems,and then try to introduce the concept of EVA to the K company’s comprehensive budget management,clear EVA responsibility center,set up the target value of EVA,EVA target oriented to budgeting,control and adjustment.Add the EVA index to the budget assessment,increase the management assessment,and improve the enterprise’s enthusiasm to complete the budget target.Finally,we hope that through the above process,we can establish a comprehensive budget management system and related safeguard measures based on EVA in K company,and gradually improve and improve the company’s comprehensive budget management model.