MANAGEMENT ACCOUNTING FOR DECISION MAKING

Running head: MANAGEMENT ACCOUNTING FOR DECISION MAKING
Management Accounting for Decision Making
Name of the Student
Name of the University
Author’s Note

MANAGEMENT ACCOUNTING FOR DECISION MAKING1
Table of Contents
Balanced Scorecard on Monthly Basis......................................................................................2
Explanation of the Measures of Balanced Scorecard.................................................................3
Financial Perspective.............................................................................................................3
Process Perspective................................................................................................................4
Customer Perspective.............................................................................................................6
Learning Perspective..............................................................................................................8
References................................................................................................................................10

MANAGEMENT ACCOUNTING FOR DECISION MAKING2
Balanced Scorecard on Monthly Basis
Financial Perspective Process Perspective
Measures Measures
 The profit is increased
 Growth in donation and grants
 Efficiency in using annual budget
 Using all resources with efficiency
 Enhanced cost structure
 Introducing and developing
innovative services
 Increase in awareness of the
available services among people
 Compliance with laws and
regulations
 Ensuring secure and safe
environment
 Enhancement in operational
standards
Customer Perspective Learning Perspective
Measures Measures
 Satisfaction to the patients and their
families
 Enhancement in accessing services
 Improvement in service quality
 Customized services for patients
 Increase in the resolution of
complaints
 Minimizing turnover of staffs
 Enhanced satisfaction of the
employees
 Reward and recognition initiatives
for staffs
 Delivering growth opportunities to
the staffs
 Enhanced skills, expertise and
abilities of the staffs

MANAGEMENT ACCOUNTING FOR DECISION MAKING3
Explanation of the Measures of Balanced Scorecard
Financial Perspective
1. Ensuring increase in profit is not considered as crucial, but a minimum amount of
profitability a charity like this small cancer charity needs to maintain in order to
remain operational (Boateng, Akamavi and Ndoro 2016). This requires the cancer
charity to ensure that their profitability is increased on every monthly basis as this is
crucial to uphold its overall stability in a good position. This can be done by tracking
the change in percentage of profitability on monthly basis. For example, there can be
a 5% increase in the current month’s profitability as compared to the previous month.
Alternative strategies need to be employed by the cancer charity in case it fails to be
profitable (Boateng, Akamavi and Ndoro 2016).
2. Donations and grants are the prime source of income of the cancer charity and
therefore, ensuring increase in these needs to be the greatest primacy for it. Increase in
donation is a good measure as this ensures the overall survival of the cancer charity.
This measure will tell that whether the charity is earning adequate income through
donations and grants in order to carry out its operations. Like profitability, this can be
measured by change in percentage. For instance, there can be 10% increase or
decrease in this in the present year (Colbran et al. 2019).
3. Efficient utilization of organizational resources is largely reliant of the development
of budget that includes the projection of income and expenditure. This is a good
measure because this helps in assessing the efficiency of budgetary control within the
cancer charity. This measures assesses the analysis of variance in budgeting. In the
cancer charity, this measure can well be used for assessing the increase or decrease in
the budget variance of one month as compared to the previous months. Variance