Strategic Management Accounting | Case Study

Running Head: STRATEGIC MANAGEMENT ACCOUNTING
STRATEGIC MANAGEMENT ACCOUNTING
Name of the Student
Name of the University
Author Note

STRATEGIC MANAGEMENT ACCOUNTING1
Table of Contents
a).................................................................................................................................................2
Introduction................................................................................................................................2
Background of Company.......................................................................................................2
Discussion..................................................................................................................................2
Comparison of Three Costing Methods.................................................................................2
Conclusion & Recommendations...............................................................................................5
b)................................................................................................................................................5
Introduction................................................................................................................................5
Discussion..................................................................................................................................5
Budgeting Methods................................................................................................................5
Comparison of Two Budgeting Methods...............................................................................6
Conclusion & Recommendations...............................................................................................8
c).................................................................................................................................................8
Introduction................................................................................................................................8
Discussion..................................................................................................................................9
Balanced Scorecard................................................................................................................9
Evaluation of Uses of Balanced Scorecard............................................................................9
Conclusion & Recommendations.............................................................................................12
Reference..................................................................................................................................13

STRATEGIC MANAGEMENT ACCOUNTING2

STRATEGIC MANAGEMENT ACCOUNTING3
a)
Introduction
Strategic management accounting is referred as form of the accounting, in which
emphasis is placed on information, which relates to external factors, internally generated
information as well as non-financial information of entity. Management accounting is the
internal function of accounting that is used for allocating costs of business towards services
or goods and preparing reports for the internal management decisions of business
(Abdelmoneim Mohamed & Jones, 2014). Hence, this assignment aims to compare critically
three methods of costing, which aid Flyme Plc for understanding and reducing their direct
costs. Further, critically comparison will be done on two methods of budgeting with current
method used at the Flyme Plc, which will aid reduction in the overheads. Lastly, evaluation
will be on the way Balanced Scorecard will be used by Flyme Plc for improving performance
of company.
Background of Company
The UK airline company, Flyme Plc is operating in mid of long haul market. The
company has become successful because of overall strategy of the company to offer excellent
service of customer for lower than the average prices of ticket. In recent years, the reputation
of company was impacted negatively by the mixed reviews of customers. Most often,
customers report inconsistent levels of the quality and service from flight to flight, for
instance numbers of cabin crew on the duty, availability of number of the in-flight movies
and various sixes of in-flight meals.