Management Accounting: Balanced Scorecard Approach for Qantas Airlines

Running head: MANAGEMENT ACCOUNTING
Management Accounting
Name of the University:
Name of the Student:
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1MANAGEMENT ACCOUNTING
Table of Contents
Part A.........................................................................................................................................2
Part B..........................................................................................................................................5
Part 1......................................................................................................................................5
Part 2......................................................................................................................................6
Part 3......................................................................................................................................8
References................................................................................................................................11

2MANAGEMENT ACCOUNTING
Part A
Control, compliance along with competitive report serves as vital aspects that have
facilitated in development of the management accounting practice. Such tradition process of
carrying out management accounting practice has certain limitations that includes that they
just focus on the financially based business performance measures so that the financial
perspective has a considerably increased weighing in comparison to other aspects (Basuony
2014). Conversely, financial perspectives just focus on a company’s previous performances.
In order to forecast an organizations future success certain important presumptions and
information is deemed necessary. Moreover, traditional management accounting practices
related with control, compliance and competitive report does not consider certain non-
financial scopes that is necessary in attaining financial objectives. Such factors include
process improvement, product development, employee motivation and qualification along
with consumer satisfaction. Considering such limitations, the modern business practices an
increased focus on competitive support for attaining necessary strategic objectives along with
proving less focus on control and compliance (Cooper, Ezzamel and Qu 2017). Based on the
mentioned statement certain factors those have contributed to development of the
management accounting practice is explained below along with analyzing the usefulness of
the balanced scorecard.
 Balanced scorecard serves as an effective management accounting technique that has
several features in it in transforming and translating accounting technique. Such
translation includes labelling, framing, modification along with specification of
certain abstract categories along with cause-effect association.
 It can also be stated that balanced scorecard facilitates in developing aa balance
between certain financial and non-financial perspectives that includes factors such as
financial, consumer, internal business processes and learning and growth (Gibbons

3MANAGEMENT ACCOUNTING
and Kaplan 2015). This facilitates the companies in attaining rapid and effective
implementation of strategy.
 Perspectives mentioned in the balanced scorecard also facilitates the managers in
attaining controlling tasks such as planning, briefing, driving and supervising the
organizational activities.
Balanced scorecard (BSC) serves as aa strategic planning and management system that is
employed by the companies as modern accounting practice in order to:
 Align daily work which every individual is doing with the strategy
 Measuring and monitoring progress in attaining strategic targets
 Communicating the aspects that the companies are centered on attaining
 Prioritizing products, projects along with services
Balanced scorecard includes a set of financial and non-financial measures associated with
an organization’s critical success factors (Hansen and Schaltegger 2016). For this reason, the
major intention of this modern management accounting framework is to offer a
comprehensive structure in transforming a company’s strategic objectives into a well-
developed set of performance measures. The reasons for which the balanced scorecard
approach has facilitated in serving as an effective management accounting practice is focused
on its useful attributes. Certain benefits offered by implementing balanced scorecard
approach in the organizations fir its management accounting practices are indicated below:
 BSC offers a long-term strategic performance view rather than a short-term
performance position view. Moreover, it can also widen the dilutional managers view
in representing better organizational performance rather than just analyzing
financially oriented view.