A Research On Budget Slack Of T Company's Management Costs

As a budget management system has many functions.As a set of management system,it reflects the management needs of enterprises and is widely used in many enterprises at home and abroad.However,as the market environment continues to change,the overall budget management has not yet achieved the expected implementation results.Some related budget issues have gradually emerged.An invalid budget management model is something that any business wants to avoid.Its existence will affect the company's long-term stability and future development,and budget slack is one of the most important issues.If the problem of budget slack is not well controlled and solved,then budget management is just a piece of empty talk,which wastes corporate resources while not allowing resources to create benefits for the enterprise.In this paper,T Company's subordinate branches are 10.Due to the huge scale of the group company,the budget management is not in place,so there are big problems,the budget.Relaxation is one of the problems.In the case of T company managers using the budget completion as an indicator to measure the performance of their subordinate companies,the subordinate company budget executives tend to set a more relaxed budget standard in order to successfully complete the budget,so that they can complete the budget of a certain task.The amount of resources is greater than the actual amount of resources required or the output of the budget is less than the amount of possible output.This phenomenon is budget slack.To put it simply,the expected value of the T company's senior management level(the value that the executor can achieve with the best effort)has a certain deviation from the reported value of the subordinate unit executor in the budget preparation process.This deviation is called budget slack.Or the budget is loose.Budget slack will have unfavorable budget differences for the entire enterprise.The phenomenon of budget slack is common among major companies in the world,leading to a series of economic consequences,which makes the budget management of enterprises deviate from the expected goals.What are the reasons for the occurrence of budget slack,and what factors lead to budget slack?This is the key to the relaxation of corporate budget control,and it is also the starting point of this paper.This paper reviews the research results of budgetary relaxation on the domestic and foreign scholars,and redefines the scope of budget slack.The budget slack includes two aspects:"relaxation of budget preparation"and "relaxation of budget execution",It also points out that the agent's rent-seeking behavior is its essence.From the perspective of behavioral science theory,principal-agent theory and game theory,this paper analyzes the causes of budget slack,and analyzes the factors affecting budget slack in combination with budget analysis of a subsidiary company of T Company,from budget participation,information asymmetry and existing management system.A perspective analysis of the factors that induce budget slack.It should be divided into three areas to strengthen control over budget slack:the first aspect is to avoid budget slack in budgeting;the second is to avoid budget Implement measures to generate budget slack;the third aspect is to improve budget slack by establishing a more comprehensive performance appraisal mechanism and incentive mechanism.By analyzing the causes and research countermeasures,it is hoped that the company's budget slack problem can be effectively prevented and controlled.