Analysis and Implication of Balance Scorecard in Management Accounting

Management accounting

Table of Contents
Introduction......................................................................................................................................3
Analysis and implication of Balance scorecard...............................................................................3
Balance Scorecard.......................................................................................................................3
Line of Causation.........................................................................................................................3
The implication of Balance Scorecard.........................................................................................5
Critical Evaluation – arguments for and against the statement...................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

INTRODUCTION
Balance Scorecard model is developed by Robert Kaplan and David Norton, which measures the
strategic performance of the company (Kaplan, & Norton, 1992). The thesis is based on the
Evaluation of the statement
“What’s measured is what matters” and implication of the balance scorecard.
In this study, elements of balance scorecard will be analyzed. There are four elements, which
plays a significant role for the company, namely learning and growth perspective, internal
business process perspective, customer perspective, and financial perspective, are measured by
the company for evaluation of its performance. It assists the company in gaining a competitive
advantage as well as success in the long run period (Moore, Rowe, & Widener 2001). Further,
the critical evaluation for and against the statement is also described. The present report also
represents the manner in which balance Scorecard can be implemented by the company. The
argument against and in favour of the statement is reported in this study.
ANALYSIS AND IMPLICATION OF BALANCE SCORECARD
Balance Scorecard
The main objective of this approach is to convert the mission and vision of the company into the
actual performance. Thus, it is used by the management for the strategic planning and
communicating to the employees about their goals and objective of the company. It also assists
the company to balance the routine activities of employees according to their strategies and
evaluate and assess the performance in the direction of the strategic planning (Norreklit,
Jacobsen, & Mitchell, 2008). This approach is measured by the four crucial elements that have a
significant impact on the company. In the layman language, it can be said that Balance scorecard
measures the factors that build the value for the organization.
Line of Causation
The statement is what is measured is what matters; it means if X matters then it will be
measured. There are four elements such as learning and growth perspective, internal business