Management Accounting and Performance Management Assignment

Added on - 29 Apr 2020

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RUNNING HEAD: Performance management[TYPE THE COMPANY NAME]PerformancemanagementLloyd bank
Performance management1Table of ContentsIntroduction...........................................................................................................................................2The objective of management accounting:...........................................................................................2Assistance in Planning and Formulation of Future Policies................................................................2Serves as methods for correspondence.............................................................................................2Measuring performance....................................................................................................................3Decision making.................................................................................................................................3Internal reporting..............................................................................................................................4Trends in management accounting:......................................................................................................4Six Sigma approach............................................................................................................................4Total quality management.................................................................................................................5Nature of management accounting:......................................................................................................7Sources of information:.........................................................................................................................8Internal sources:................................................................................................................................8External sources:...............................................................................................................................8References...........................................................................................................................................10
Performance management2IntroductionLloyds Banking Group is a financial services organization with huge base ofcustomers with presence all over the world. It is famous in the high street with highestvolume of business revenue. The following reports are analysing about the objective ofmanagement accounting in bank performance management.The objective of management accounting:The objectives of management accounting helps the bank in finding out the role and use ofmanagement accounting in the organization. The following objectives are significant forLloyd bank:Assistance in Planning and Formulation of Future Policies:Management accounting helps Lloyd Banking Group in managing and deciding in advanceabout the planning that needs to be initiated to deal with financial matters. It involvesestimating on basis of given information, defining goals, creating policies and defining thealternative course of actions and determining the activities of programmes which are to becommenced. Planning will help Lloyd group in maintaining the performance as well(Macintosh & Quattrone, 2010).The forecasting done is based on the information that hasbeen collected from the market survey and past financial performance of the bank. It isimportant to collect the data from the reliable source that will help to ensure that the properfinancial planning can be implemented.Serves as methods for correspondence: Management accounting gives a method toLloyd groupto take administrative decisions related to the performance of the financedepartment. It can also help the bank to properly analyse the bank’s annual report. In the year2016 the underlying profit was calculated to be 7.9 billion pound with the strong capital
Performance management3generation of c.190 bps. The statutory profit before the tax was more than 4.2 billion pound(Lloydsbankinggroup.com, 2017).These figures of the report helps to deal with the overall system of management accountingfor the finance department of the Lloyd bank(Hilton, 2011). At later stages, it keeps allcustomer of bank educated about the plans that have been settled upon and their parts in theseplans.Management accounting helps Lloyd group of the bank in communicating the financial plansand facts about the company to the desired stakeholders of the company.With the record ofthe financial data, it is possible for the bank to understand the progress with the help of thedata. They can also communicate with the financial stakeholders about the matters related tothe financial performance. The management team of Lloyd bank needs assistance for takingconclusions and for estimating performance.Measuring performance: Management accounting practices in Lloyd measures twokinds of execution. Firstly it Lloyd assists its employee execution and the second is aptitudeassessment. The actual execution is measured in terms of plans decided with the establishedplans and a report of deviation from the standard plans. This deviation should be tracked tothe management for the successful basic control and also to show the competence of theprocedures used. The two sorts of performance evaluation in management are utilized toinfluence corrective activities with a specific end goal to enhance execution.Decision making:The most significant objective of managerial accounting is to furnish administration andproprietorship with the capacity to Lloyd bank and making them settle on information-drivenchoices. Lloyd bank is settling on numerous choices consistently (Baldvinsdottir, Mitchell &
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