The Case Analysis On Administration Expense Budget Control Of HD Company

As China’s economic development and market competition become more and more intense,enterprises are constantly increasing their control over cost expenditure while fighting for market share.Among them,the cost compression space is limited,the product quality and service is difficult to guarantee,the enterprise competition ability is reduced while excessive compressing cost.Expenses include Administrative expense,Sales expenses and Financial expenses,which are directly included in the annual profit.In particular,Administrative expense is large,which involves a wide range of business,while the control cost is relatively low,and the control of expenditure on administrative expenses becomes the focus of the enterprise.The administrative expenses control is good,helps the enterprise target profit to realize,the product competitiveness increases.In recent years,with the gradual expansion of the enterprise scale and the management of refined demand,HD company has increased the Administrative expense,and Administrative expense control becomes the focus of attention.Administrative expense control means variety,including building the good cost control environment,build the perfect accounting system,strengthen the budget management,etc.one of the most direct and effective throughout method is to budget management,through the budget management improving the administrative efficiency of enterprises,optimizing the cost of the enterprise,realizing the effective utilization of resources.In this paper,based on the research of the Administrative expense budget control literature at home and abroad,the definition and classification of Administrative expense,Summary of Administrative expense budget control process and methods,combining the reality of HD company,from the system management,budgeting,budget execution,budget analysis evaluation,and budget information to introduce Administrative expense budget situation,found the problems existing in the Administrative expense budget control,and put forward constructive control in view of the problem.First of all,formulate the administrative rules for Administrative expense expenditure,let Administrative expense expenditure be standardized in the framework to ensure the scope of Administrative expense accounting and procedure compliance controllable.Secondly,refine and implement the overall budget management,propose optimization plan for the existing budget management problems of HD company,and improve the Administrative expense control ability.Finally,speed up the construction of information on budget information for Administrative expense,set up a control platform at the stage of the budget,and implement the budget information management system for budget preparation and analysis and assessment.From the construction of the system to the specific budget management and information construction,this paper ensures that the Administrative expense can be expected,implemented and controlled.