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the beyond budgeting approach may include the following use of rolling budgets concentrating on cash forecasts and not cost control budgets revised
a philosophy that believes traditional or conventional budgeting methods are of little use to management however beyond budgeting does not believe
q show the budgetary planning a budget is a forecast and quantified plan of action budgetary planning creates a budget like a part of the planning
q explain dimensional performance matrixthe 6-dimensional performance matrix similar to the balanced scorecard fitzgerald 1991 created a 6
q examples of external failure cost the customer perspective can control performance by the assessment of external quality failure costs incurred
illustrations of internal failure cost the internal perspective may control performance by assessment of internal quality failure costs incurred
q illustrate about value for money frameworkthe value for money vfm framework the 3es economy cheap eg is the organisation procuring resources
q financial perspective for not-for-profit organisationsthe primary objective is profit for most organisations but for an npo they are non-profit
q process to implement balanced scorecard1 a clear vision of introduction of a bsc communicated and demonstration which senior management are
q limitations of using balanced scorecard- historical performance analysis is no guide to the future- manipulation or massaging of performance
benefits of using balanced scorecard bsc- bsc encourages a long-term view of improving performance through time- bsc considers both non-financial as
four perspectives of the balanced scorecard customer perspective eg what should we do right for our customers and what do they value internal
a new technique to strategic management was developed in early 1990s by drs robert kaplan harvard business school and david norton kaplan and norton
identify suitable performance measures for an insurance company to detect false claims and measure the speed of how they are processing
q multidimensional performance measurementmultidimensional performance indicators recognise that the constant drive to increase profitability can
q explain activity based managementactivity based management abm is about satisfying customers whilst making fewer demands on internal resources
q managing value based management strategic selection of projects that create high shareholder wealth resource allocation and funding should have a
q explain about value based managementvalue based management vbm is an approach which focuses on strategies and actions to create more value for
q behaviour of divisional senior executiveseva can affect the behaviour of divisional senior executives in the following ways1 they would
division y has annual operating profit of pound40 million after charging pound6 million for the development cost of a new product which has been
differences of eva and ri eva uses the replacement not historical accounting cost of assets profit calculated under both methods are different eg
limitations of economic value added eva - not well understood by users of accounts- divisions of different sizes cannot be relatively
merits of economic value added eva- cash not accounting based measure therefore less distorted for performance measurement- consistent or
q explain economic value addedeconomic value added was developed by stern stewart amp co and is a registered trademark eva is an estimate of economic
q define market value addedmva is an external measure of shareholder wealth the market value added from one period to another it is measured by the