ACC203: Balanced Scorecard Application in Management Accounting

This report examines the balanced scorecard approach in management accounting, emphasizing its role in understanding organizational performance through customer, internal business, learning and innovation, and financial perspectives. It highlights the importance of management accounting practices (MAPs) in decision-making, particularly in costing and pricing. The report also analyzes Qantas's critical success factors, including route management, strong leadership, non-stop flights, and a competent workforce, alongside key performance indicators (KPIs) such as customer satisfaction and brand reputation. The document provides insights into how larger companies adopt modern MAPs to compete effectively and make informed decisions.

ACC203 Management
Accounting

Balanced Scorecard Approach
 Incorporating middle management in
the management selection
 Balanced scorecard approach is
globally accepted and implemented
(Larry & Christopher , 2012)
 constructed in such a manner so as
to assist managers and executives in
understanding the performance
pattern of the organization

4 relevant perspectives
 customer’s perspective
it is important for the managers to be aware of the
company’s potential and ability to meet the consumer
requirements
 Internal business perspective (Vaitilingam, 2014)
managers are required to concentrate on the critical
internal affairs of business
 learning and innovation perspective
organization’s will and efforts to innovate, improve and
learning shall add value to the organization (Vaitilingam,
2014)
 Financial perspective
focused on the market share and making profits primarily

Management accounting practice
 influences the performance of companies
 Larger companies may adopt modern
management accounting practices like
sophisticated management and cost
accounting system (Venanci, 2012)
 Helps in taking decisions regarding costing
and pricing of their goods
 MAP’s allows the organizations to compete
with their competitors in such a manner that
facilitates decision making (Needles, 2011)

Qantas’s critical success factors
The critical success factors of Qantas airlines:
Route
 operating in more than 120 countries
 186 destinations including Australia
 Adoption of route
Strong management
 Qantas’s management is strong and profound in its duties
 the employees of Qantas are given proper training in hospitality
(Qantas, 2017)
Non-stop flights
 more non-stop flights over layoff flights
 saves the passengers from the harassment of waiting for another
flight
Competent workforce
 excellent and highly competent workforce
 personnel is hostile and well trained (Qantas, 2017)

Key performance indicators (KPIs) of Qantas
Consumer satisfaction
 Customer satisfaction
 building its reputation over the years of its
operations
Brand reputation
 reputed brand by providing best quality
services
 catering to the consumer needs and managing
the reputation (Qantas, 2017)
Social media and awareness of the brand
 easy for brands to reach its customers.

References
Vaitilingam, R. (2014) The Financial Times Guide to Using the Financial
Pages. London: FT Prentice Hall.
Larry M. W & Christopher J. S. (2012) Managerial and Cost Accounting.
Pearson Press
Needles, S. C. (2011) Managerial Accounting. USA: South-Western
Cengage Learning .
Venanci, D. (2012) Financial Performance Measures and Value
Creation. State of art . New York: Springer.
Qantas. (2017). Qantas 2017 annual report & accounts. Available from:
https://www.qantasnewsroom.com.au/media-releases/qantas-group-fu
ll-year-2017-financial-result/
[Accessed 10 September 2018]
Rompho, N. (2011) Why the Balanced Scorecard Fails in SMEs: A Case
Study. International Journal of Business and Management.
[online]. 6 (11), p. 39–46. Available from:
http://www.ccsenet.org/journal/index.php/ijbm/article/view/10247
[Accessed 10 September 2018]