Develop a Balanced Scorecard | Report

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the Student
Name of the University
Author’s Note

1MANAGEMENT ACCOUNTING
Table of Contents
Introduction......................................................................................................................................2
Evaluation of the Balanced Scorecard.............................................................................................2
Financial Perspective...................................................................................................................2
Customer Perspective..................................................................................................................3
Internal Business Process Perspective.........................................................................................5
Learning and Growth Perspective...............................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Appendix........................................................................................................................................11

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Introduction
The main aim of this report is to develop a balance scorecard of a small cancer charity.
The measures under the four perspective of this balance scorecard will help the trustee of the
charity to monitor its performance on monthly basis. Each perspective of this balance scorecard
includes five measures that can be monitored on monthly basis.
Evaluation of the Balanced Scorecard
Financial Perspective
1. Net amount of funds raised – This can be considered as the difference between the funds
raised in the present month and the funds raised in the last month. The main aim of this measure
is to assess the presence of adequate amount of funds for continuing the operations of the cancer
charity. This needs to be done on monthly basis. This measure is able in verifying whether the
cancer charity is being successful to raise the required money (Catuogno et al. 2017).
2. Number of Financial Donors – This refers to the difference between the number of donors in
the current month and the number of donors in the last month. This measure aims at assessing the
presence of sufficient amount of donors in the cancer charity as one large part of its funds comes
from these donors. This needs to be done on monthly basis. This measure helps in verifying the
ability of the charity in attracting and retaining the donors through different initiates (Tickell, Paz
and Rahman 2017).
3. Percentage budget increase – This is the difference between the monthly budget of the
current and the monthly budget of the previous year. The objective of this measure is to assess
the availability of the resources for maintaining the activities of the cancer charity and to make

3MANAGEMENT ACCOUNTING
investments for the improvements. This needs to be done on monthly basis. The main advantage
of this measure can be seen in verifying whether the charity is being successful to raise money
from its marketing and other initiatives. This also assures good performance of all activities of
the charity (Alharbi et al. 2016).
4. Percentage cost reduction – This can be considered as the estimated percentage of reduction
in costs because of the utilization of appropriate protocols. This can be ascertained as the total
number of cancer consultations or treatments through the use of appropriate protocol by the
above cost reduction for the use of protocol divided by total costs. The main aim of this measure
is to observe whether the cancer charity is able in the design and implementation of cost
reduction strategies while increasing overall efficiency. This needs to be on monthly basis.
5. Average cost per patient consulted – This can be defined as the total costs over number of
cancer patients consulted or advised or treated (Rahimi et al. 2017). The main objective of this
measure is the measurement of the efficiency of the cancer charity when consulting or advising
or treating the cancer patients, assessing whether it has the capability to provide care at low cost.
The indicator ‘cost per case’ is applicable in this measure. This needs to be measured on monthly
basis. Use of this measure guarantees measuring cost efficiency along with effectiveness of
treatments.
Customer Perspective
1. Number of Complaints from Patients – This measure can be considered as the total number
of complaints from the patients or their families in the present month as compared to the
previous month. The main aim of this measure is to monitor the readiness and efficiency of the
cancer charity to address the complaints from patients or their families and to resolve them.