strategic management accounting | assignment
13 Pages4042 Words77 Views
Added on 2020-01-28
strategic management accounting | assignment
Added on 2020-01-28
ShareRelated Documents
Accounting for Strategic Managementand Control
Table of Contents1) Introduction.................................................................................................................................12) Content on:..................................................................................................................................1a) How Balance score card may help in performance management......................................1b) Implement the use of Balance score card across FCH.......................................................2c. Potential difficulties that company will face in choice of performance measures.............3d) Elaborate further on likely difficulties the interpretation of performance measures.........43. Conclusion...................................................................................................................................54. Part 2 Tuition block.....................................................................................................................6a. Applying the concept of target costing and compute gap...................................................6b. Suggesting the manner through which company can minimize the cost gap.....................8c. Discussing the pricing method which is highly appropriate for GPL................................8A. Discussing the differences that takes place between internal and external cost failure....8b. Identifying the significant risks that are facing by CP.......................................................95. Conclusion........................................................................................................................10References......................................................................................................................................11
1) Introduction In the business unit, strategic management and control is highly required to attain successin the competitive arena (DRURY, 2013). Cost is one of the main factors that closely influencethe profit margin of firm. Hence, it is highly required for the firm to exert control on cost levelby employing suitable tools and techniques (Simons, 2013). Hence, cost control techniques arehighly significant which in turn helps in enhancing profitability aspect to a great extent. Further,strategic management aspect is highly associated with making effectual use of financialresources through the means of sound framework. Thus, by framing highly competent strategiesand policies business unit can get desired level of outcome or success. The present report isbased on different case situations which will develop understanding regarding the concept ofbalance scorecard, target and other costing methods. Report will shed light on the mannerthrough which cost gap can be reduced by the firm to significant level (Rothaermel, 2015). 2) Content on:a) How Balance score card may help in performance managementBalance score card is the essential tool that supports the organization in measuring theirperformance. It is the semi standard structured report that supports the managers in tacking theexecution of all activities which are related to the business operations. The main characteristicsof the balance score card is that it focuses on the strategic agenda and selects the small data itemsin order to monitor the overall performance of the all activities (Simons, 2013). It is the toolwhich acts as closed loop controller that is applied by the management of the organization inorder to compare the actual performance of the company with expected performance. It is thekind of semi standard structured report which is used by the management of FCH in tracking theexecution of each activity and making control over them. Managers of cited firm can monitor theactivities and can take necessary action on time to reduce consequences (DRURY, 2013).Balance scorecard is the strategic planning tool that splits the essential activities into four parts;financial, customers, operational and people. These four perspectives give clear path to the FCHfirm in implementing the action plan . Balance score card is the great tool through whichcompany can align its day to day business operations and can make effective strategy in order to1
accomplish its goal soon. It helps in measuring the overall business performance so thatdrawback and strength can be identified, it helps in making strong strategy for the growth of theFCH (Hiebl, 2014). b) Implement the use of Balance score card across FCHBalance score card is the business approach that helps the FCH in making coordinationwith the business operations so that resources can be utilized effectively and wastage can beminimized. It helps in improving the efficiency of the FCH and assist the organization inimproving its operations. When this tool applies in the finance department then company can getto know about return on investment, cash flow and financial results (Simons, 2013). By this wayit can identify whether the investment would be profitable for the organization or not. By thisway company can measure its performance and can take sound decisions which can assist inimproving the business performances. When it is applied in the sales operations then FCH canevaluate the delivery performance to consumers, quality performance, customer retention,customer satisfaction level with the help of balance score card. In this tool management level,people score the each activity and measure their level in the organization. Hat helps them inidentifying the loop fall in the system so that they can improve the issues soon. By this way citedfirm can enhance t its brand reputation and can deliver quality services to the target audience(DRURY, 2013). Balance score card plays an important role in managing the future growth of an organisation. Itmeasures that the goals been set up by the company have been met or not. Based on the needsand deeds of the company, balance score card is set up. It also helps to measure the capabilitiesof the workforce and get the work done according to it.FCH faces the difficulties in establishing the mechanism but with the help of this balancescore card cited firm can get to know that whether modified process will be able to achieve thegoal of the company or not. So according its evaluate the situation and implement the activitiessignificantly Balance score card is the great tool that find out the drawback in the current processand modify the existing procedure in such manner so that overall goal of the entity can beachieved. It is the great tools through which FCH can reduce the time frame works and canutilize its resources well. With the help of this mechanism, cited firm can improve its decision2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Management Accounting Assignemnt : Imda Techlg...
|16
|4373
|144
Advanced Management Accounting Assignment - Doclg...
|17
|5138
|148
(Solution) Balance Score Card : PDFlg...
|10
|2136
|104
The Effect of Balanced Scorecards on Decision Makers of Management in the Oil & Gas Industrylg...
|13
|4475
|180
Effect of Balanced Scorecards on Decision Makers of Management in the Oil & Gas Industrylg...
|2
|551
|311
Strategic Managementlg...
|5
|1115
|65