Management Accounting and Sustainability

This assignment delves into the crucial link between management accounting and sustainability reporting. Students are tasked with analyzing a set of scholarly articles focusing on how management accounting principles and tools can be effectively applied to measure, manage, and report on organizational sustainability performance. The analysis should highlight best practices, emerging trends, and potential challenges in integrating these concepts.

MANAGEMENT
ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Management accounting and essential requirements od different types of management
accounting system.......................................................................................................................1
P2 Different methods used for management accounting reporting.............................................3
M1 Benefits of management accounting system and their application in organisation context. 4
D1 Management accounting system and management accounting reporting integrated within
organisational processes..............................................................................................................4
TASK 2............................................................................................................................................5
P3 Appropriate techniques of cost analysis to prepare an income statement..............................5
M2 Apply a range of management accounting techniques and produce appropriate financial
accounting documents.................................................................................................................8
D2 Produce financial reports that accurately apply and interpret data for a range of business
activities......................................................................................................................................8
TASK 3............................................................................................................................................9
P3. Advantages and disadvantages of different types of planning tools used for budgetary
control.........................................................................................................................................9
M3. Analyses the use of planning tools and applications for preparation and forecasting
budgets......................................................................................................................................13
P5. Organisations are adapting management accounting systems to respond to financial
problems....................................................................................................................................13
D3. Various planning tools to resolve financial problems........................................................16
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Management accounting is the process of producing management accounts and reports
that provide accurate and timely financial and statistical information which can require by
managers to decision making process related to day to day activities (Alyousef and Mickan,
2016). It is used as management tool which look at the events hat happen in and around a
business while considering the needs of a business. In the present report selected company,
Clarasys Ltd which is London based management consultancy with their sights set on the United
states. It is a truly democratic company and constantly making improvements to the working
environment with new desks, divider and poster. In this report consist of different management
accounting system and different methods of management accounting reports. Apart from
calculate cost by using appropriate costing techniques and analysis cost to prepare income
statement. In addition identify different advantages and disadvantage of different types of
planning tools in budgetary control and selected company compare with other organisation to
respond financial problems.
TASK 1
P1 Management accounting and essential requirements od different types of management
accounting system
Introduction to Management Accounting
Management accounting is the process of identifying, measuring, analysing, interpreting
and communicating information to managers for the pursuit of an organization's goals. It is also
known as cost accounting and managerial accounting which is different from financial
accounting.
Difference between management and financial accounting
Basis Management Accounting Financial Accounting
Purpose It is prepared by accountant for
internal used.
It is used foe external reporting
primarily although the management
also reviews it.
Regulation It is not based on particular
regulation and law
It is presented by company as per
accounting concepts and standards.
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Users The users of this accounting is
internal management
Its users are shareholders, regulators
and investors.
Origin, role, principles of management accounting
Management accounting first emerged as a significant activity during the early industry
revolution, in the leading industries and enterprises of the day. As such, management accounting
arose after financial accounting, which can trace its origins to its stewardship role in European
merchant trading ventures. Double entry book keeping had been used for more than 300 years by
the time management accounting first emerged as a recognizable field (Armitage, Webb and
Glynn, 2016).
The management accounting play different role in an organisation as a internal part like
planing, organising, motivating, coordinating, control, communicate and interpret financial
information.
Principles of management accounting are mentioned which are – Influence
(communication provides insight that is influential), Relevance (Providing information is
relevant), value (This principle can show impact on value is analysed) and trust (stewardship
builds trust).
Different types of management accounting system
Management accounting system is the internal system of an organization which is used to
measure and determine it processes for the management of the organization.
Cost accounting system
A cost accounting system is a framework which is used by an organisation to determine
the cost of their products regarding to profitability analysis, inventory valuation and cost control.
This system mainly used by manufactures to record production activities using a perceptual
inventory system. This accounting system mainly designed for producers to track the the flow of
inventory continually through the several level of production. In Clarasys Ltd is used by the
managers to keep track record of cost which is faced by them while attend meetings with clients
(Bedford and Speklé, 2018).
Inventory management system
The system is used for identifying inventory item that can make products in efficient
manner. In Clarasys Ltd followed by this system in order to keep track record of all activities
related to inventory at each level. The company has applied three different types of inventory
2

management system which can apply according to their requirement such as LIFO, FIFO and
AVCO. The manager of the company provide bes financial services and keep all details
regarding to their problems.
Job costing system
In this system business entities can record the jobs according to performance of customer.
In the context of company it is mainly used by managers to analyse the cost which is involved in
service providing of the company. This system very important for the business in order to
manage and analyse cost of each job to perform under particular time period.
Price Optimising system
This system used by company to know different perception of different customer
regarding to financial services. Management of Clarasys Ltd used this system and know about
best prices of their services. It can help to attract more customers and they are taking interest to
know financial advise. It is very beneficial for a company and help to survive long time (Christ
and Burritt, 2013).
P2 Different methods used for management accounting reporting
Information should be relevant
When the company prepare financial report of the company so it will be prepared
according to requirement and it will present in front of management for decision making process
and know financial performance of the company. These information should be presented
according to user perspective, reliable, accurate and up to date.
Different types of managerial accounting reports
Ratio Analysis – It is calculated to know financial performance of the business and
perform how well the business has performed in the different operational activities. For example
net profit ratio will inform the management on how much profit earn as a percentage of the sales
value. Clarasys Ltd can analysis ratio to compare performance from last year and provide all
reliable and under-stable information.
Budget Report – It very important for company to prepare budget report of each section
to predict future income and expenses in order to reduce risk. These budgets will assist the
management in controlling the resources in the most efficiency way possible. The budgets are
therefore used in planning decision making process as well as planning by the management of
Clarasys Ltd (Collis and Hussey, 2017).
3

Credit control Report – This report will evaluate credit limit granted to the customers in
particular time period. In this report highlighted those people who pay late and sometime can not
pay and take financial services from business. So this report prepare by Clarasys Ltd to control
credit and reducing amount of bad debt and facilitating the customers in order to maximise the
sales.
Job Cost Report – It is prepared to show actual amounts which can spent on completion
of the job. This can be compared with the expected amounts to find variances. This report will
assist the management to making sure about to control cost and the profit margins from the jobs.
It will help to Clarasys Ltd to meet the overall profitability targets of the business.
Inventory and manufacturing Report – With the help of this report focus on the stock
which is mainly used by manufacturing department to produce the budgeted production units.
This report help to highlight on wastage production and help to management of Clarasys Ltd to
understand work breakdown of the unit costs. So it will help to cost savings can be planned and
important pricing decision can be made (DRURY, 2013).
M1 Benefits of management accounting system and their application in organisation context
Management accounting system related to internal function of a company and it can
adopt by company to manage all business activities. Cost accounting system help to know
functional budget cost of each section and arrange according to product wise and department
wise for planning all resources. Price optimization system apply by organisation to know
different reaction of different customer and it can help to set best prices according to their
services. In inventory management system create bills of materials, work order and other
production document which is related to inventory data. In job costing system involve process to
accumulated information about regarding to costs with a specific production or service job.
D1 Management accounting system and management accounting reporting integrated within
organisational processes
every organisation required management accounting system or accounting report to to
perform well in the business to achieve their goals & objectives. with the help of cost accounting
system manager identify the each product cost where further decision taken by according to it.
Along with this, performance report help the manager to identify employees performance which
the help of this report offer incentives which motivate people regarding their work. so basically
these system or management accounting report helps in organisational process.
4

TASK 2
P3 Appropriate techniques of cost analysis to prepare an income statement
Absorption and marginal costing
Absorption costing defined as a method for evaluating the cost which is connected to
production process and apportioning them with individual products. The cost appointed to
products in the section of absorption costing system where including direct material, direct
labour, variable production overhead.
Marginal costing is the accounting system in which variable costs are charged to costs
unit and fixed cost in the particular period which are written off in full against the aggregate
contribution (Gibassier and Schaltegger, 2015).
Calculation of cost of each unit of radiators (Marginal costing )
Price per unit £25
Direct Material (£50000/£10000) £5
Direct Labour (£30000/£10000) £3
Variable manufacturing overhead (£20000/£10000) £2
Variable s& Admin exp (£30000/£10000) £3
Total Variable Cost £13
Contribution per unit £12
Cost per unit using absorption costing
Variable cost £13*100000 130000
Fixed S & Admin Exp 30000
Fixed Manufacturing overhead 40000
Total cost 200000
Absorption cost per unit TC/ Unit Produced £200000/£10000 =
£20
5

Flexible Budget
£ (5000 units) £ (10000 units)
Sales 125000 250000
Cost of Sales 50000 100000
Prod. Contri. Margin 75000 150000
Variable selling/Admin costs 15000 30000
Net Contribution Margin 60000 120000
Less – Total Fixed Costs
Fixed Manufacturing Overhead 40000 40000
Fixed Selling & Admin 30000 30000
Net Profit (10000) 50000
Income statement when 5000 units sold:
Absorption Costing Method
Sales (25*5000) 125000
Less – Variable Cost
Direct Material 50000
Direct Labour 30000
Variable overhead 20000
Variable S & A 30000
Total Variable cost (130000)
Fixed Cost
Fixed Manufacturing overhead 40000
Fixed S&A expenses 30000
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Total cost (200000)
Less – Closing Stock (5000*20) 100000 (100000)
Profit/(Loss) £25000
Marginal Costing Method
Sales (25* 5000) 125000
Less – Variable Cost
Direct Material 50000
Direct Labour 30000
Variable overhead 20000
Variable S & A 30000
Total Variable Cost (130000)
Less – Closing Stock valuation (5000 * £13) (65000)
Cost of goods sold (65000)
Contribution 6000
Fixed Cost (70000)
(Loss) (10000)
Income Statement using absorption costing
Sales (25 * 10000) 250000
Less – Variable Cost
Direct Material 50000
Direct Labour 30000
Variable overhead 20000
Variable S & A 30000
7

Total Variable cost (130000)
Fixed Cost
Fixed Manufacturing overhead 40000
Fixed S&A expenses 30000
Total cost (200000)
Profit 50000
Income Statement using Marginal Costing
Sales (£25 * 10000) 250000
Less – Variable Cost
Direct Material 50000
Direct Labour 30000
Variable overhead 20000
Variable S & A 30000
Total Variable Cost (130000)
Contribution 120000
Less – Fixed Cost
Manufacturing Overhead 40000
S & A exp. 30000 (70000)
Profit £50000
For Fans –
Labour Price Variances
(Budgeted Price – Actual price)* Actual Hours
(5 – 5.20 )* 3400 = (680) Unfavourable
Labour Usage Variance
(Budgeted hours – Actual hours ) * Budgeted price
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(3000 – 3400) * 5 = (2000) Unfavourable
For packaging Boxes
Material Price Variances
(Budgeted Price – Actual price ) * Actual Usage
(10 – 9.5) *2200 = 1100 (Favourable)
Material Usage Variance
(Budgeted use – Actual use) * budgeted price
(2000 – 2200) *10 = (2000) unfavourable
M2 Apply a range of management accounting techniques and produce appropriate financial
accounting documents
Cost
It is the amount of money that spends by company on production of goods and services.
There are not including the mark up for profit.
Direct & Indirect cost – It can be defined as costs which can accurately traced to a cost
object with little effort. Indirect cost are also called overhead cost. It is divided according to
different sections after than calculate the overhead costs.
Cost allocation is used for financial reporting purpose and it is spread to cost among
departments or inventory items. It is used in the calculation of profitability at the section or
subsidiary level which is turn may be used on the basis of bonuses and funding (Gibassier,
2017).
D2 Produce financial reports that accurately apply and interpret data for a range of business
activities
Fixed and variable cost and semi variable cost
A cost that does not change in total with the change in activity is known as fixed cost and
it is remain same in all year. It is changing according to production units and when company feel
that there are need to change fixed cost.
A cost that change in total with the change in the level of activity is called variable cost
and it is related to direct material cost.
A cost that the characteristics of both fixed cost is called mixed and semi variable cost.
Normal and standard costing
9

Normal costing is used to value manufactured products with the actual material cost, the
actual direct labour cost and manufacturing overhead based on a predetermination manufacturing
overhead rate.
Standard costing values its manufactured products with a predetermined material cost, a
planned direct labour cost and planned manufacturing overhead cost.
Inventory cost- This cost is associated with expenses of holding and storing stocks for
the purpose of sale. There are three types of inventory costs:-
 Inventory purchase cost- It is related to buying raw materials or other components for
the purpose of resale or producing new product.
 Inventory processing costs- These are related to doing some work on already existing
inventory and further selling it. For example assembling parts of product.
 Inventory distribution cost- It is concerned with expenses of shipping and storing
inventory at distribution centre or warehouse before sales (Hilton and Platt, 2013).
TASK 3
P3. Advantages and disadvantages of different types of planning tools used for budgetary control
Budgetary control: It is a technique which helps in utilization of budgets by the
managers for evaluation, monitoring as well as controlling various costs associated with the
operations in a financial year. It provides a framework to the managers for setting financial along
with performance objectives with budgets for the purpose of comparing the actual results with
the forecasted budgets.
Budgetary planning: It is a tool which helps in preparing the budgets as well as utilizing
them for controlling the business operations. These are helpful in planning for future based on
past experiences.
Preparing a budget: Different organisations follow different procedures for preparing its
budgets. Clarasys Ltd prepares its budgets by listing its sources of incomes and tally them with
the past budgets. Then fixed costs are recorded of the current year along with expenses. Later all
the items are carefully analysed and recorded by the accountants in their budgetary statements.
All the steps are carefully monitored at all processes (Hirsch, Nitzl and Schauß, 2015).
Different types of budgets: The selected consultancy firm uses different types of budgets. These
are explained as:
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Capital budgets: It is a budget which includes receipts and expenses related to capital
transactions. Such budgeting helps in allocating the funds for the purpose of acquiring and
maintaining the fixed assets. Every organisation maintains capital budgets to continue the growth
of their business by acquiring assets which helps in producing results.
Operating budgets: It is an annual plan which helps in projecting the incomes and
expenses of day to day activities. Such budgets helps the organisation to determine the required
funds for carry out daily expenses. These are required for smooth functioning of business
operations without any hurdles.
Alternate methods of budgeting: The selected firm also uses various alternate methods of
budgeting to plan and control various costs. The descriptions of some budgets with advantages
and disadvantages are as follows:
 Rolling Budgeting: It is a budget which helps in long term financial planning. Such
type of budget continue to new budgeting period at the time the current financial period
completed. It involves the extension of existing budgeting model.
Advantages: Such budget is flexible in nature as it helps in revising the assumptions from the last
budget made. It helps in extending the period of existing budget.
Disadvantages: The preparations of this budget are not advisable when many changes are done.
It requires huge money along with time for the preparation of such budget.
 Static budgeting: It is a type of budget which helps in formulating model of expected
results to determine the financial position for coming year to provide expected results in b
the selected time period. No changes are made with respect to the output changes in this
budget (Kalkhouran and et.al., 2015).
Advantages: A static budget is more useful when sales would be expected and more result are
required.
Disadvantages: Such budget depends on single outcome which are difficult to analyse and
achieve.
 Incremental budgeting: It is a budget which is prepared with the use of past period
budget along with actual performance as a base for the purpose of adding incremental
amounts in the new budget periods.
Advantages: The impact of such budgets can be monitored easily. The changes can be easily
understandable of this budget.
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Disadvantages: Such budget encourages the spending of the organisation for obtaining variances.
Behavioural implications of budgets: The budgets plays vital role in Clarasys Ltd for planning,
organising, directing and controlling all the favourable as well as unfavourable variances. All the
budgets helps in planning and controlling the organisational resources in different departments
for the purpose of providing appropriate information (Leitner, 2013).
Pricing: It is a process to set the prices of the companies products and services to be
offered in market. It helps in determining the values of the securities as well as investments
offered to customers in the chosen firm. Various pricing strategies are as follows:
Penetration pricing: Such pricing strategy helps in gaining the market share to enter in the
new market or strengthening the customer base by setting the low prices for limited time period.
Premium pricing: This pricing strategy is used to set the prices higher than the
competitors prices for the purpose of increasing the perceptions of customers or clients regarding
to the products and services.
Competitors determine the prices: The competitors in the market determine their prices
through direct or indirect competition. They also uses cost plus strategy, markup pricing strategy.
Supply and demand considerations: The supply and demand considers time series forecasting,
software tools, economic impacts, adequate resources, statistical forecasting, relevant metrics,
income level, consumers preferences and various other factors.
Common Costing systems: It is a framework which helps the organisations to set their
products costs for the purpose of analysing profitability, controlling costs, revenue management
and controlling costs. Common costing systems used by the accountants of Clarasys Ltd are as
follows:
 Standard costing system: It is a tool for estimating the costs in the business process of
production. It helps in planning budgets, controlling costs and evaluating performances.
 Actual costing system: Such costing system helps in using the actual costs associated
with material as well as labour for the purpose of calculating the costs of production.
 Normal costing system: this type of system uses the indirect costs for calculating costs of
production. It helps in providing the accurate evaluation of associated costs by
eliminating fluctuations (Maas, Schaltegger and Crutzen, 2016).
Cost system differs depending on various costing activities.
Cost system Job costing Process costing Batch costing Contract costing
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It is a method which
monitors the costs
association in the
production processes
for analysing
profitability,
controlling costs,
revenue management
and controlling costs .
It is a method
which helps in
recording all
the
manufacturing
costs for
keeping a
summary of
expenses.
It is a technique
which helps in
identifying direct
costs and at the
same time
allocating the
indirect costs in
the production
process.
It is a system
where all the
homogeneous
products are
categorised in
batches. Such
batches helps to
determine the cost
per unit of
product.
It is a method
which identifies
all the costs
associated in the
completion of a
contract. A
contract ledger is
prepared for such
purpose.
Strategic planning: A strategic plans are the written guidelines which includes
guidelines, actions and are communicated to attain the organisational targets along with goals.
Strategic planning is an effort which helps in taking critical decisions as well as actions to guide
the organisation to focus on future activities. Various strategic planning tools are adopted by the
executives of Clarasys Ltd for analysing their financial position in the competitive market.
Porter's five forces analysis: Such analysis helps in exploring the market forces which impact
the future demands. Such forces are applicable all types of environment to measure competition,
attractiveness and the intensity of an industry or a market. The five forces are described below:
 Threat to new entrant: Scarcity of resources, government restrictions, capital
requirements, etc. are some factors which limits the entry of a new firm. It helps the
selected firm to plan its activities by considering the entrant strategies.
 Threat of substitute: The threat of substitute is high as there are distinct consultancies
available to provide the same services in the market (Mahesha and Akash, 2013).
 Bargaining power of supplier: The suppliers are those who provide funds to the selected
organisation for planning its operations. The power in the hands of suppliers is less as
multiple suppliers are available to provide many services to the firm.
 Bargaining power of customer: The customers affects the profitability margins as well as
volume of the chosen organisation.
 Competitive rivalry: Several rivals are surrounded with the organization and these are
major determinant factors which determines the intensity level of competition level in the
market.
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The managers of Clarasys Ltd carefully analyses all the forces for exploring the impact and
formulation essential policies to remain in competitive position. It also helps in preparation of
various budgets to analyse the financial position.
Balance scorecard: It is a tool for measuring strategic performances. The aim of such scorecard
is to implement the mission, vision into actions for achieving results. It helps in identifying and
improving certain functions through providing feedbacks for getting external outcomes. It is an
important tool to determine the organisational priorities by focusing on key areas.
The accountants of chosen entity uses the approach of balance scorecard for focusing on various
strategic issues as well as monitoring the performances by designing appropriate reports for the
purpose of analysing the financial position.
M3. Analyses the use of planning tools and applications for preparation and forecasting budgets
Budgetary planning and controlling is essential in any business to evaluate, monitors and
control associated costs with the operations. The planning budgets which are used by the
management of Clarasys Ltd includes capital budgets, operating budgets, rolling budgets, static
budgets and incremental budgets. All the tools are used for preparation of the financial budgets
and forecasting their use in the future based on the performance of the organisation. The firm
uses Porter's five forces analysis and balance scorecard for analysing their financial position
(McLellan, 2014).
P5. Organisations are adapting management accounting systems to respond to financial problems
Financial problems: Financial problems are the factors which impacts the working of
the business operations. Different organisations are suffering from different financial problems.
Various strategies, actions are formulated to overcome from the problems in effective manner for
achieve the efficiency. Various financial problems faced by the selected consultancy firm are as
follows:
 Cost management: It is very essential to manage all the direct as well indirect costs
associated with completion of any task. The managers are not able to identify the indirect
costs for measuring the performances and evaluating the results (Strauß and Zecher,
2013).
 Spending more than earning: All the firms should focus on earning more rather than
spending of unnecessary transactions. The chosen consultancy formulated various
provisions for spending less but due to some reasons unable fulfil them.
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 Issue related to balance sheet: The accountants of respective companies faces the problem
of mismatch in balance sheet. This occurs due to lower profit and sells. The selected
company face this issue because in the balance sheet of company, they have more
liabilities in compare to assets.
Management accounting approaches: These approaches helps in resolving the financial
problems for attaining the mission, vision of any firm. Various approaches formulated by
Clarasys Ltd are as described:
 Benchmarking: Such approach helps in formulating the ways to achieve the best
performance by comparing the plans. procedures and performances with other companies
performing their working in same industry. These provide informations to the
accountants for the purpose of identifying gaps in the achievement of goals (Nørreklit,
2014).
 KPI: Key Performance Indicators are the designed objectives which are set for
individuals as well as departments. These are known as measurements which helps in
decision making by arranging all the informations and feedbacks. Such performance
indicators inspires valuable actions for growth and success of the selected firm.
Financial governance: Financial governance includes various tactics for collecting,
calculating, controlling as well as presenting relevant financial information in understandable
manner. Such governance ensures that a firm is accountable to its members, government
authorities, contributors to complete the financial transactions. All the rules and regulations helps
in maintaining the accuracy of financial statements. Various techniques are described to prevent
financial problems by tracking all the transactions, management of performances and controlling
of data along with operations of the business processes. Financial governance is also helpful in
monitoring the formulated strategies before implementing them into actions (Pavlatos and
Kostakis, 2015).
Management accounting skills: These are the skills which distinguishes an accountant
from other people at work place. The accountant must be aware related to any changes,
collaborate all the department to work as team, flexible to fit in multiple roles, must have
technological skills, proper management skills. The accountants uses these skills to prevent
problems through formulating strategies by understanding the problems and taking effective
decisions.
15

Comparison between Clarasys Ltd and Hurst Financial Consultancy Limited
Basis of comparison Clarasys Ltd Hurst Financial Consultancy
Limited
Problem: The accountants of Clarasys Ltd
are facing problems of cost
management, spending more
than earning, issue related to
balance sheet. They have poor
cost management techniques,
focuses more on spending in
promotional campaigns to
attract new clients and expenses
are more than incomes.
The accountants of Hurst Financial
Consultancy Limited faces the
financial problems related to
problem of risk management. They
fails to understand and formulate
various strategies to minimize or
eliminate the undetermined risk.
Approach: The management applies
approach of benchmarking
(Schaltegger and Zvezdov,
2015).
The management applies approach
of Key performance indicators.
M4. Management accounting in response to financial problems which leads organisation to
sustainable success
Various problems are faced by different firms in the competitive environment. To solve
the financial issues or problems, Clarasys Ltd and Hurst Financial Consultancy Limited uses
management approach of benchmarking and key performance indicators respectively. Financial
governance helps in collecting, calculating, controlling as well as presenting relevant financial
information with the helps of systems as well as effective strategies to lead a sustainable success.
D3. Various planning tools to resolve financial problems
Planning is done in advance for the future. The accountants of Clarasys Ltd as well as
Hurst Financial Consultancy Limited uses various planning tools for resolving their issues. The
selected consultancy firm uses planning tools such as capital budgets, operating budgets, rolling
budgets, static budgets and incremental budgets. All the tools are helpful in preparation of the
16

financial budgets for future based on present or past events for resolving all its problems to lead
a sustainable position and success for long time (Teittinen, Pellinen and Järvenpää, 2013).
CONCLUSION
From the above project report it has been concluded that management accounting is an
essential component to achieve the objectives of the Clarasys Ltd. This report includes all the
information related to management accounting and its systems such as cost accounting system,
inventory management system, job costing system and price optimisation system. The benefits of
each system are clearly defined. It further includes management accounting reports such as ratio
analysis, budget report, credit control report, job cost report and inventory management report.
The respective company uses marginal costing and absorption costing techniques to prepare
income statement. The planning budgets which are used by the management of Clarasys Ltd
includes capital budgets, operating budgets, rolling budgets, static budgets and incremental
budgets. It uses Porter's five forces analysis and balance scorecard for analysing their financial
position. Clarasys Ltd and Hurst Financial Consultancy Limited uses management approach of
benchmarking and key performance indicators respectively for solving the financial issues or
problems to sustain lead a sustainable position and success for long time.
17

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