Case Study On Comprehensive Budget Management Of XL Company

The use of comprehensive budget management in western developed countries has been used for a long time,and has been continuously improved.Many Chinese scholars and institutions have learned successful experiences abroad,and have introduced the comprehensive budget management tool into China,which has been applied in many Chinese enterprises.XL company as an old state-owned enterprise specializing in the manufacture of aircraft landing gear,has also carried out a comprehensive budget management according to the unified requirements of the group,but for various reasons,the effect of this work is not satisfactory.In recent years,due to the influx of private enterprises into the military supporting industry,for XL,the advantage of the planned economy has disappeared for a long time,and the market competition is increasingly fierce.In such an internal and external environment,the author believes that the XL company is likely to improve the competitiveness of the enterprise only if it does a complete budget management.Therefore,by understanding the current budget management situation of XL company,digging deep hidden problems and finding solutions,we can further optimize the comprehensive budget management of XL company,and provide inspiration for other similar enterprises to solve the same or similar problems.This article is mainly composed of two parts:Theory and case analysis.In theory,this paper reviews the relevant literature of comprehensive budget management at home and abroad,defines the concept of comprehensive budget management,characteristics and functions of the three modules,combing the comprehensive budget system construction are:Target formulation of comprehensive budget management,budgeting,budget control,budget evaluation.In the case analysis part,this paper selects XL company as the research object,and through the analysis of its comprehensive budget management and implementation process,we find that XL company has five problems:1,The budget organization is unreasonable.2.The content system of budget preparation is not perfect.3.The financial method is simple.4.The budget management control has no key point setting and is mainly controlled afterwards.5.Lack of budget assessment and insufficient incentive Aiming at the problems existing in the budget management of XL company,the following solutions are put forward:1,improve the overall budget management organization;2,improve the overall budget management content;3,improve the budgeting method;4,Strengthening the control of the key business of the comprehensive budget.5.Encouraging the promotion of' budget evaluation.