Management Accounting through BSC Technique

Running head: MANAGEMENT ACCOUNTING THROUGH BSC TECHNIQUE
Management accounting through BSC technique
Name of the student:
Name of the University:
Author’s Note:

1MANAGEMENT ACCOUNTING THROUGH BSC TECHNIQUE
Executive summary
The study identifies the technique adopted through the BSC system. This measures
performance which helps in formulating strategy for the further improvement in the
performance. The study identifies various techniques undertaken by this method and also
explains the BSC system in 4 different dimensions. The study also undertakes an example of
Tesco for the better evaluation of this method. However, the study includes the identification
of the BSC technique that are being followed by the company and strategies which are being
made by the company for the improvement in their performance. This explains the strategies
into the 4 dimensions that are being formulated by the company through creating
communication with other departments and makes the organisation a better working place.
This study identifies the advantages and the disadvantages of the BSC to identify the
effectiveness of this technique.

2MANAGEMENT ACCOUNTING THROUGH BSC TECHNIQUE
Table of Contents
Introduction................................................................................................................................3
Evaluation of the balanced score card system and its effectiveness..........................................3
Balanced score card in relation to the Tesco..............................................................................7
Advantages and disadvantages of balance scorecard technique..............................................10
Conclusion................................................................................................................................10
References................................................................................................................................12

3MANAGEMENT ACCOUNTING THROUGH BSC TECHNIQUE
Introduction
Balanced score card is strategic management tool where the organizational strategies
are being evaluated depending on the achievement measurement. This also helps in choosing
right strategy so that the organization can reach the goal easily. This evaluates the
performance which helps the organization to identify their successive implementation of the
strategy. This evaluates the strategies with reference to the performance measurements. As
this judges the effectiveness of the strategies this includes certain activities to improve the
performance further. This has been used in many companies in recent times to evaluate their
performance into the 4 segments such as: customer, financial, learning and growth, internal
business process. However for the better understanding of this technique the report
undertakes a detailed BSC analysis on the Tesco. Further the analysis includes the
performance analysis of the Tesco through the evaluation of the effective ness of their
strategy. This includes the identification of the company’s strategy that has provided idea on
the strategic effectiveness and the benefit achieved through using the Balanced score card
into the organization.
Evaluation of the balanced score card system and its effectiveness
The balanced score card system is a strategic management process which helps the
strategic management accounting to produce cost efficiency into the business process. This
method of evaluating performance has been developed by the Kaplan and Norton in the year
1996 (Al-Hosaini & Sofian, 2015). The balanced score card is a technique of identifying the
required strategy for achieving cost efficiency through evaluating the performance of the
company. This helps the management accounting system to develop strategy through which
costs are calculated based on the activities and cost efficiency is achieved. The balanced
score card technique has been popular among all the sector of the business. However, this has
been mostly adopted by the big concerns to evaluated their performance at every level and