Accounting Information for Decision Making - Finance Report

This report explores the application of accounting information in decision-making, specifically focusing on British Petroleum. It delves into the practical application of the Balanced Scorecard and Activity Based Costing methodologies. The report explains the importance of these management tools in the context of British Petroleum and how they facilitate effective management and organization of work. The report highlights the utility of these tools in providing a framework for aligning day-to-day operations with strategic goals, and in prioritizing projects and services within the company. The report concludes by emphasizing the significance of these tools for enhancing decision-making processes within a global oil and gas company. The report also references key literature on the topic, providing additional context and depth to the analysis.

Running head: ACCOUNTS
Accounts
Name of the Student:
Name of the University:
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1ACCOUNTING INFORMATION FOR DECISION MAKING
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Activity Based Accounting..........................................................................................................2
Balanced Scorecard.....................................................................................................................2
Conclusion.......................................................................................................................................2
References........................................................................................................................................3

2ACCOUNTING INFORMATION FOR DECISION MAKING
Introduction
British Petroleum is a British Multinational Oil and Gas Company operating globally and
is headquartered in London, United Kingdom. The company operates its work by delivering Oil
and Gas Products and Services. The operations of the company can be well explained with the
help of Managerial Accounting Concepts like Balanced Scorecard and Activity Based Costing.
Discussion
Activity Based Accounting
The activity based accounting is a key costing method that undertakes the various
activities in an organisations and assigns the cost of various activity undertaken to each kind of
products and services consumed by each of the department. The allocation of the various costs
that are incurred by the British Petroleum Company that would allow them to allocate more
indirect costs into direct costs as otherwise compared to a conventional costing method (Dale &
Plunkett, 2017).
Balanced Scorecard
The Balanced Scorecard is the other key strategic management tool that is used for the
purpose of execution of various activities by the staff within their ability. The same is
implemented for the purpose of controlling and monitoring the consequences that can arise from
the taken action.
The British Petroleum Company can align the day-to-day work that everyone performs in an
organisation with the help of Balanced Scorecard with the implemented strategy. The company
with the same can also prioritize projects and various other products and services (Cooper,
2017).

3ACCOUNTING INFORMATION FOR DECISION MAKING
Conclusion
The management tools would be helping the company in better management and
organising the various operations of work.
References
Cooper, R. (2017). Target costing and value engineering. Routledge.
Dale, B. G., & Plunkett, J. J. (2017). Quality costing. Routledge.