Got a tricky question? Receive an answer from students like you! Try us!

Management Accounting and Performance Evaluation - Essay Example

Only on StudentShare
Author : madisonlehner

Summary

Management Accounting and Performance Evaluation- PFA Limited Table of Contents Table of Contents 2 Introduction 3 Facts of the Case 3 Nature of the Problem 4 Management Accounting Control Systems 4 Responsibility Accounting 5 Identification of Controllability 5 Determination of difficulty of financial targets 5 Participation of managers in setting the financial targets 7 Contingency Theory 8 Characteristics of an Effective Performance Measurement 8 Use of Accounting Information in Performance Evaluation 9 Recommendations 10 Conclusion 12 References 13 Introduction This project is an analysis of the management control problems faced by Plastics For All Ltd…

Extract of sample
Management Accounting and Performance Evaluation

Facts of the Case Following are the facts of the case: Shirley Banks has recently joined PFA Ltd as factory manager with a motive to increase the turnover and market share. The factory runs for 24 hours with three eight-hour shifts. The shifts are rotated in such a manner that no one team has to consistently work at night. Currently the factory has a high number of temporary staff and the production is behind the targets. The shipment of orders is always done late. The workers are highly discontent due to the frequent impractical actions by the management regarding the factory management. Recent examples are the decisions to change every shift to twelve hours, cancellation of overtime payments and introduction of weekly performance reports. The high unachievable monthly targets have put undue strain on the workers. Moreover, the general office costs are allocated to each shift manager. The overall effect is that the workers are not motivated enough. ...
Download paper

Related Essays

Management accounting is a new branch of accounting that promotes the overall managerial performance of an organisation
As scholars indicate, an organisation’s management accounting discipline can have a great influence on its other functions. Mainly, management accounting discipline defines an organisation’s managerial ethics. Hence, the concept of management accounting discipline greatly relates to the firm’s corporate governance policies. This paper will particularly discuss the evolution of management accounting discipline and its relationship with other functions in organisations. The paper will give specific focus to the ethical aspects in management accounting, performance management, balanced…
12 pages (3012 words)
Management Accounting: Performance Evaluation (Balanced Scorecard)
Moreover, the organization uses performance measurement tools to motivate the employees and identify the best performers within the organization as well. Performance measurement tools are not only restricted to these functions, but these tools can be helpful in analyzing where the organization has incurred high costs and to identify areas where productivity can be enhanced so that the profitability of the organization can be increased. Therefore performance measurement tools are beneficial for the organization in increasing their financial performances as well as their operational performances…
10 pages (2510 words)
Management Accounting
Available at: . Anderson, DR, Sweeny, DJ, Williams, TA & Martin, RK 2007, An introduction to management science: Quantitative approaches to decision making, 12th edn, Cengage Learning. This book is quite helpful in the field of management accounting and the quantitative perspectives in decision making. The book has a great deal of citations proving academic value of wide content. The methods, calculations and examples in the book are accurate and simple to understand and can be used for real world cases. This text…
10 pages (2510 words)
Essay on Management Accounting
Management accounting has a design and intention, used by the management in the organization. Confidentiality plays an enormous role in management accounting as opposed to financial accounting. The information in management accounting has a computational dimension tailored for the managers; it uses management information systems, as opposed to financial accounting standards. Various concepts of management accounting exist for usage by managers and management teams within organizations and companies (Caplan, p. 156). This information plays a crucial role in decision making processes within the…
3 pages (753 words)
management accounting
However, with the right tools information and skills, a company is guaranteed to stay afloat in a world where businesses keep dropping out of the corporate world. How companies manage their finances and workforce dictates whether the company is bound to open its doors come the next financial year. One of the major concerns in management is the management of accounts which is usually handled a company’s accountants in conjunction with the management of the company. Management accounting specifically deals with generating information pertaining to a given company and basically relates on how…
4 pages (1004 words)
Performance management
Studies have revealed that the simplification process has produced results that have not only been conflicting but also ambiguous. Due to the disadvantages stated above, Ferreira & Otley's formulated the performance management framework that clearly describes the operation and structure of performance management system. Researchers have emphasized that to obtain accurate results that are essential in developing skills and knowledge on management performance, it is important to use theoretical foundations. Managers of an organization need to select rational theories that will guide them when…
3 pages (753 words)
MANAGEMENT ACCOUNTING
external and internal factors. These factors have redefined how management practices or functions are performed across business organizations. In the writings by Burgstahler et al. (2007), they stated that the transformations have largely affected the decision making process since there is a change in the management structure, which has integrated new roles as well as position holders. In addition, technology is also been increasingly applied in performing management functions.
10 pages (2510 words)