R&D Budget Management Pattern Innovation ¿ Based on Principle of ABB

Abstract

With the competition of enterprises from productivity to R&D ability, it is imperative to reinforce the financial management during R&D progress. Budget management is especially important as it is a subset of financial management. Based on the analysis of activity-based budgeting (ABB ), combining the characteristic of R&D budget activity, the paper puts forward that ABB can be referred to R&D budget, and then, the authors design a R&D budget model and budget preparation method which based on ABB. The advantage of the pattern lays in through decomposing R&D process layer by layer, corresponding the cost and the activity consumption one by one, therefore realizing the dynamic controlling throughout the R&D process under the given resource of an enterprise, then getting balance of both operating and financial cycle.