Strategic Budgeting Control System:Theory and Evidence from China Company

摘要

In China,budget management has historically played a key role in management control for about 20 years.And there are a lot of theoretical research results on budgeting theory and its application recently to support some new budgeting mode.This paper constructs a new model SBC (Strategic Budgeting Control) which combines strategy management with budget management and solve the problems of traditional budgeting and considerable criticism Hansen et al (2003)[5] had proposed in his paper and book (Hope and Fraser,2003a[1]; Hansen et al,2003).Moreover,in this paper,there are two other contributions: 1) by the new model to answer the criticisms for budgeting and management accounting; 2) this model not only provides a way to show that budgets continue to be used for control purposes and are perceived to be value-added but also provides a tool how to improve those weaknesses of budgets in China company.