Balance Score Card (BSC) is a performance measurement tool that enables the stakeholders to understand the growth and progress of an organization towards the strategic goals. It is developed by David Norton and Robert Kaplan. Balance Score Card mainly focuses on balancing the…
Those are financial perspective, customer perspective, internal perspective and learning and growth perspective. Financial perspective focuses on long term shareholder value. It is driven by cost efficiency and revenue growth. Performance of an organization towards the customer can be assessed on the price, service, brand, availability and quality. Regarding the internal perspective, it is based on the customer management process, operations management process, innovation process and regulatory and social process. For learning and growth, an organization should take care of human and organizational capital along with informational capital. Balance Score Card measure can be of four types. The lead indicator is an early warning measure, mainly used in learning and growth perspective. Lagging measure provides past data e.g. the data of previous year or previous quarter. It may not be reliable for future performance. The third measure is that of efficiency measure. It provides a clear view about the functioning of a process. An example of this is the productivity measure. Last one is that of effective measure. It identifies the lack on the production and subsequently provides instruction on the quality.
Management accounting is the process of preparing accounts and present all statistical and financial information required by the managers to take any short term decision. In case of management accounting, the targeted audience is the internal management unlike financial accounting that mainly serves for the external audience such as shareholders, creditors etc. It is also known as managerial accounting (Business Dictionary, n.d.).
The management accountants are mainly involved in designing the business process, forecasting and budgeting and monitoring internal control. They even synthesize all the information to derive the economic value (IMA, 2008).
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……………………………………………...6 References…………………………………………………………………………………………7 Introduction British Airways plc (BA) is one of the largest airlines worldwide and is considered as the national carrier of the United Kingdom based on its large fleet, international flights and destinations.
This contingency management depends on the manager’s personal leadership style. It also relies upon the talent and behaviours of the regular employees. The contingency theory is a line of thinking that there is no one ideal way of leadership. It also contends that certain leadership styles may be effective in some situations, but not so in others.
Specifically, the multi-divisional forms of business, which are the results of the emergence of large-scale business, led to a need for developing new forms of accounting. Furthermore, the strategic developments that were taking place occasioned new managerial structures, which in turn brought about the need to redesign the accounting system – these changes led to differentiation of management accounting on one hand and financial accounting on the other hand.
Since the director’s of companies cannot execute their company’s strategies on their own, they have to rely on people and thus create an organization structure that allows decentralization of management responsibilities. According to Hoskin & Macve (1990, pg.
Management accounting emphasizes on decision making and forward looking instead of the old or historical data which the basic accounting used to emphasize. There are different methods that have emerged because of management accounting and some of these techniques are; Activity Based Costing (ABC), Grenzplankostenrechnung (GPK), Resource Consumption Accounting (RCA), etc.
This paper contains an introduction to the topic of discussion, literature review, a research methodology that was used to collect data, a section for analyzing the data, and a last section for conclusion. Table of Contents 1 1.0 Introduction 3 2.0 Literature review 4 2.1 Accounting 4 2.2 Management control/ accounting systems 5 2.3 Management accounting and decision-making 6 3.0 Research methodology 7 4.0 Analysis 8 4.1 Supporting arguments for Johnson and Kaplan’s (1987) argument 8 4.1 Arguments against the criticism issued by Johnson and Kaplan 9 5.0 Conclusion 11 References 12 1.0 Introduction The field of management has witnessed numerous transformations that are mainly attributed to
Management accounting is a branch of accounting which mainly deals with various managerial aspects. This is primarily handled by the managers within the organization, and it is an essential component in taking appropriate decisions. The concept of management accounting comes under the Management accountant who is responsible for the preparation of financial statements, and management accounting report for appropriate decision making.
"The process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of financial information used by management to plan, evaluate, and control within an organization and to assure appropriate use of and accountability for its resources.
They play different roles in the process of satisfying the needs of the stakeholders of a particular organization. This essay attempts to provide a clear understanding regarding the differences that exist between the management
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