OtherPapers.com - Other Term Papers and Free Essays
Search

Management Accounting

Essay by   •  September 15, 2012  •  Essay  •  580 Words (3 Pages)  •  1,102 Views

Essay Preview: Management Accounting

Report this essay
Page 1 of 3

The balanced scorecard is a performance management system that keeps a check whether there is an aalignment between the large scale objectives and the smaller scale operational activities of a company that too on terms of sight and smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and scheme. The balanced scorecard proposes the four general perspectives-

Financial perspective-

The financial perspective keeps a check weather the strategies implemented and applied by the company are contributing to the bottom-line improvement of the company. Key performance indicators of this perspective are the cash flow statement; return on fund invested; financial result; return on capital employed and return on equity. These key performance indicators would decide weather the strategy implemented by Natureview Farm is beneficial for the company and is providing contribution in the financial improvement of the company.

Customer perspective-

The customer perspective measures the value that is provided to the customer like time, quality, performance and service, and cost by the organization to satisfy customers to generate more sales and revenues. It also measures the results of this value proposition to the customer like customer satisfaction, market share etc. the measured results of value proposition indicates weather the value provided to customer generated more sales and revenues and increased customer satisfaction and market share in the same proportion or not.

Internal process perspective-

This internal process perspective deals with the complete processes that actually create and deliver the value proposition to the customer. Its main focus is to provide the value to the customers both productively and efficiently. The key performance indicators are number of activities; opportunity success rate; accident ratios; overall equipment effectiveness. These performance indicators would measure the efficiency of strategy implemented and applied by Natureview Farm Company.

Innovation and learning perspective-

The innovation and learning perspective keeps its focus mainly on the internal skills and capabilities that are required to support internal processes of value creation. It deals with the human capital; information capital and the organizational capital of the company and provides foundation in the strategy development. Key performance indicators of this perspective are Investment Rate; Illness rate; Internal Promotions %; Employee Turnover and Gender Ratios. The strategy is developed on the basis of internal skills and capabilities. Proposed strategy of expanding to a supermarket channel would be judged on the basis of investment rate and other key parameters

...

...

Download as:   txt (3.9 Kb)   pdf (68.3 Kb)   docx (9.8 Kb)  
Continue for 2 more pages »
Only available on OtherPapers.com
Citation Generator

(2012, 09). Management Accounting. OtherPapers.com. Retrieved 09, 2012, from https://www.otherpapers.com/essay/Management-Accounting/33631.html

"Management Accounting" OtherPapers.com. 09 2012. 2012. 09 2012 <https://www.otherpapers.com/essay/Management-Accounting/33631.html>.

"Management Accounting." OtherPapers.com. OtherPapers.com, 09 2012. Web. 09 2012. <https://www.otherpapers.com/essay/Management-Accounting/33631.html>.

"Management Accounting." OtherPapers.com. 09, 2012. Accessed 09, 2012. https://www.otherpapers.com/essay/Management-Accounting/33631.html.