I`d like to have a 600 words essay on this topic. I don`t have the specific question so i have attached 2 files that contain all the relevant points that have to be include in the essay. Management...

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I`d like to have a 600 words essay on this topic. I don`t have the specific question so i have attached 2 files that contain all the relevant points that have to be include in the essay.

Management Accounting


Management Accounting Issues


  • Van de Stede – budgetary slack and management short-term orientation.


  • Balanced score card, Just-in-time (JIT) inventory management, Total quality management (TQM)


  • Participation – the advantages and disadvantages




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Management Accounting Management Accounting Issues Van de Stede – budgetary slack and management short-term orientation. Balanced score card, Just-in-time (JIT) inventory management, Total quality management (TQM) Participation – the advantages and disadvantages






Management Accounting Management Accounting Issues · Van de Stede – budgetary slack and management short-term orientation. · Balanced score card, Just-in-time (JIT) inventory management, Total quality management (TQM) · Participation – the advantages and disadvantages Management Accounting Summary A) Balanced Scorecard · Involves conceptualizing the performance of the business across multiple dimensions (4 dimensions): · Financial: How should we appear financially to our shareholders? 1. Cost and profit measures 2. Return on investment 3. Shareholder value measures · Customer: How do customers see us? 1. Customer satisfaction 2. Market share 3. Number of new customers · Internal business processes: What business processes must we excel at? 1. Cost 2. Product quality · Learning and growth: How can we sustain our ability to change and improve? 1. Employee capabilities (Employee satisfaction, absenteeism, training) 2. Info system capabilities (Customer service employees having real time access to customer satisfaction) 3. Organizational climate for employee motivation and initiative (number of employee suggestions made and implemented, number of employee with goals aligned with those of organization) · A well-designed scorecard will have performance measures that are balanced in multiple ways · Leading and lagging measures (e.g. Customer complains and repeat business) · Financial and non-financial · A primary advantage of the balanced scorecard is that is not sector-specific (it is mean any business could use balanced scorecard) · Balanced scorecard further information’s: · Can be tailored to your organization · 30% of BRW top 500 companies in Australia use BSC · E.g. AMP Limited, Australia Post, Honeywell Australia ATO, Centrelink, Uncle Tobys, Westpac Financial Services, Qantas Airport Operations. · Some organizations include an additional Social Perspective: · E.g. Shell, Body Shop B) Just-in-time (JIT) · Another important innovation has been the move by some companies to eliminate excess inventory · A well-designed JIT system offers distinct financial benefits for the company C) Total quality management (TQM) · This is a broader innovation attributed to managerial accounting, which focuses on improvements across various dimensions of company operations on an ongoing basis (Involves cultural and attitudinal change) · TQM model: 1. Customer focus 2. Planning process 3. Process management 4. Process improvement 5. Total participation D) Van de Stede: Definition: The relationship between two consequences of budgetary controls: budgetary slack creation and managerial short-term orientation. •H1: Rigid budgetary controls are: a. Negatively related to budgetary slack b. Positively related to managerial short-term orientation. •H2: Budgetary slack and managerial short-term orientation are negatively related. •H3: Relative to cost leadership strategies, differentiation strategies are: a. Negatively associated with rigid budgetary controls; b. Positively associated with budgetary slack. •H4: Past business unit performance is: (recall lecture 9 material) a. Negatively related to rigid budgetary controls; b. Positively related to budgetary slack; and, c. Negatively related to managerial short-term orientation. E) The Advantages and disadvantages of Management accounting Similar: 1. Primary Users a. Internal managers of the business b. External users: Investors, Creditors, Government authorities (ATO, ASIC etc.) 2. Purpose of Information a. Help managers make decisions, plan and control business operations b. Help investors, creditors, and others make investment, credit, and other decisions 3. Focus and Time Dimension a. Relevance and focus on the future b. Reliability, objectivity, and focus on the past 4. Type of Report a. Internal reports not restricted by GAAP b. Financial statements restricted by GAAP 5. Verification a. No independent external audit b. Annual independent audit 6. Scope of Information a. Detailed reports on parts of the company b. Summary reports primarily on the company as a whole 7. Behavioral Implications a. Concern about how reports will affect employees behavior b. Concern about adequacy of disclosure Differences:
Answered Same DayDec 20, 2021

Answer To: I`d like to have a 600 words essay on this topic. I don`t have the specific question so i have...

David answered on Dec 20 2021
101 Votes
A) Balance Scorecard
Balanced score card was introduced as a measurement tool, today it acts like a strategic management system that enables an organization to work on its vision and helps in translating the vision into the action which is inculcated across the organization. It help
s in evaluating the performance of an organization and helps in bridging the gap between the strategic objectives and the execution of the objectives. The feedback from both internal as well as external sources can be obtained which in turn helps in improving the strategic performance of the organization so as to accomplish the set goals. ‘The balanced score card complements the financial measures with operational measures on customer satisfaction, internal processes and the organization’s innovation and improvement activities that are the drivers of future financial performance’. (Kalpan, Norton, 1991)
The balanced score card for the organization and functional unit has been built on four perspective i.e. Financial perspective, Customer perspective, Internal business perspective and Innovation and learning perspective.
1. Customer Perspective:The Company will aim on differentiation and low cost strategy with a strong focus on providing satisfaction to the consumers by creating value preposition. The organization will aim on improving the satisfaction of consumers by giving them those goods and services which are up to or above their expectation level. Once a customer is satisfied and delighted he will be committed to the organization and will likely to promote the company through the word of mouth.
2. Financial Perspective:Financial perspective is an important concept of the organization as it measures the economic consequences of the strategy that has been implemented by the organization. It helps in evaluating the financial performance or bottom line improvement (i.e. increase in the net income) of the company due to the implemented strategy.
3. Internal Business Process Perspective: This is one of the most important perspectives which aim at accomplishing the customers and shareholder’s objectives. It allows the management to know how well their business is running and whether the products and services developed by them are in accordance to the customer requirements and planned cost structure.
4. Learning & Growth Perspective: It includes the training of employees and corporate cultural attitudes related to the self-improvement of corporate and individual. In the dynamic environment where technology is changing rapidly, it becomes necessary for the employees to be in continuous learning mode. The learning and growth constitute the basic and main foundation for success of any organization.
Some of the organizations like Shell; Body Shop involves additional Social perspective in thebalance scorecard. The...
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