Explain to me some definitions of budget management mode.

Budget includes operating budget, capital budget, financial budget and fund-raising budget, and the organic combination of these budgets constitutes the total budget of an enterprise, which is usually called comprehensive budget. Budget management can optimize the resource allocation of enterprises, fully mobilize the enthusiasm of employees at all levels of enterprises, is the whole process of accounting flexible application of internal management to budget management, and is a solid foundation for maximizing the interests of enterprises.

Budget management is divided into two categories, investment budget management and production and operation budget management.

1, investment budget management

Investment decision-making process is the process of compiling investment budget and optimizing different budget schemes. Investment budget refers to the purchase, reconstruction, transformation and renewal of fixed assets. On the basis of feasibility study, it determines when to invest, how much to invest, the source of funds, the income period, the rate of return on investment, the annual net cash flow, and how long it will take to recover all the investment. With the help of computer, the investment budget decision-making model is established, and the collected economic information, inputs and outputs are converted into quantities, optimized and combined into different budget schemes, and the schemes are optimized.

2, production and operation budget management

The plan compiled by the company to achieve business objectives in a certain period describes the quantitative standards of basic activities in this period, including sales budget and production budget. Direct material procurement budget, human resources budget, indirect cost budget (including manufacturing cost budget, management cost budget, sales cost budget and financial cost budget), operating profit and loss budget and cash flow budget. By establishing a budget model, the sales budget and other business divisions' budgets are input into the production and operation budget model to simulate, optimize the combination and choose the best budget scheme as the implementation scheme. The operating budget also reflects the company's business volume, income and expenditure list. Explain to the company and department heads how to achieve the work objectives, whether the budget items and quantities are reasonable, and clarify the work standards of the heads of various departments.