Balance Scorecard - Assignment

Balance Scorecard

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 3...................................................................................................................................1
(a). Explaining balance scorecard and its uses to measure performance of AB Limited............1
(b). Explaining benchmarking and its uses to improve performance of AB Limited.................2
QUESTION 4...................................................................................................................................2
(a). Outlining uses of standard costing and its reasons to be reviewed.......................................3
(b). Explaining whether standard costing can be applied to both manufacturing and service
business.......................................................................................................................................3
CONCLUSION & RECOMMENDATIONS..................................................................................4
REFERENCES................................................................................................................................5
.........................................................................................................................................................5

INTRODUCTION
Evaluation of a business is a significant task to be performed by an organisation in order
to ascertain positive and negative influencers of that firm. Maim aim of this project report is to
build an understanding about various techniques which can help in assessing performance of a
company such as balance score card and benchmarking. In this project report standard costing is
examined in detail along with techniques of performance evaluation in order to serve managing
director of AB Limited (Prakash and Pant, 2013).
QUESTION 3
(a). Explaining balance scorecard and its uses to measure performance of AB Limited
Balance scorecard is a measure which is used under strategic management to enhance
internal functions and operations of a business organisation. It is a financial metric which
provides feedback to management of business by analysing data which is collected. Balance
scorecard is a metric which identifies strategic priorities of business which are typically finance,
customers, internal management and growth. These priorities are evaluated in order to ascertain
overall performance of a company (Balance scorecard, 2017).
In order to measure the performance of AB Limited, a balance scorecard is required to be
developed.
Strategic
priorities
Objectives Measures Targets Initiatives
Finance Making AB
Limited
financially strong
by enhancing
various ratios
such as ROCE,
profitability and
asset utilisation.
In order to
measure Finances
of this company
various metrics
must be used such
as ROCE, cash
flow, net margin
ratio and volume
growth.
It is important to
evaluate all the
targets which
were set by AB
Limited. ROCE
must be 19%,
cash flow 5000
dollars per month
and net margin
12%
In order to
achieve targets of
AB Limited,
initiative that
must be
performed is asset
deposition.
1