Significance of Balance Scorecard in Management Accounting

Running head: MANAGEMENT ACCOUNTING
MANAGEMENT ACCOUNTING
Name of the student:
Name of the university:
Author Note:

MANAGEMENT ACCOUNTING1
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Significance of the balance scorecards..................................................................................2
BSC different from other metrics...........................................................................................4
BSC suitability for jb hifi ltd..................................................................................................6
Conclusion................................................................................................................................10
References................................................................................................................................12

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Introduction
The assignment actually deals with the chosen organization which is jb hifi ltd and
basically the significance of the balance scorecard of the organization and its features. The
report actually concentrates on the application of the balance scorecard on the organization
which is jb hifi ltd. The organization jb hifi ltd is a consumer and entertainment based
electronics chain store which actually provides the access towards the music records and
branded electronics products. In recent years, there is a huge demand in the electronics
industry which is also experiencing a tremendous growth. Due to the rapid enhancements in
the technology where new and latest technologies are appearing each and every moment and
further the electronics store are utilizing the benefits of it by selling the potential products in
the market for the purpose of attracting the customers. The growth is basically based on the
new products which are the smart phones, tablets and laptops in showings a tremendous
growth in this department.
Discussion
Significance of the balance scorecards
Balance scorecard is basically a tool to evaluate the performance metric which is
actually used at the time of the strategic management. The main reason to implement the
balance scorecard is to enhance the internal function of the business along with that
strengthening the internal factors so that that the organization can get the expected outcome
which the organization was actually desiring to get at the end of the year (Hoque 2018). It is
basically used to evaluate the overall financial and other aspects of the organization along
with that providing feedback to the upper management level organization at the same time is
similarly. Along with that the data collection is also a crucial role which is to provide the
qualitative result based on the information gathered by the senior level management and later
on the managers and the executives makes the significant decisions during the process.
The significance of the balance scorecard for the organization are given bellow:

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 The balanced scorecard is used to enhance the management behaviors by the process
separating four different legs which are involved in this case are the learning and
growth, business processes, customers, and finance. Based on the four parameters the
overall situational analysis of the organization is led in order to appreciate the
financial performance of the corporation in various dimensions (Schroeder, Clark and
Cathey 2019).
 It is also used to accomplish certain objectives of the organization along with the
evaluations, initiatives and the goals which are actually the primary objectives which
each and every organization tries to accomplish. This is actually utilized by the
management in order to understand the present act of the business in the end. In case
of the significant loopholes in the business it is further important for the organization
to identify the significant changes which must be adopted by the organization in order
to track the future business scorecard of the corporation (Shoup 2017).
 The balanced scorecard can further provide the necessary information about the
organization after identifying the actual objectives of the organization which may be
of short and long term business purpose. The organization in that case must adopt the
balance scorecard and accordingly the significant strategies will further add value to
the organization. The main purpose of the organization to utilize the balance
scorecard is that to develop the strategic initiatives and the key objectives which must
be adopted by the business at the time of decisions making (Battiston et al. 2016).
Based on the business of the organization which is jb hifi ltd it will be better to go for the
balance scorecard rather than the traditional performance measurement which are the six
sigma black belt or the total quality management of the organization. The balance scorecard
of the organization actually provides a clear understanding regarding the strategy, which is