l1 : intro

Question 1

what is the purpose of management accounting?

Answer 1

to inform internal decisions & provide feedback and control on operating performance

Question 2

what is the balanced scorecard approach?

Answer 2

looks at strategic measures as well as trad. financial measures to get more balanced view of performance. can examine areas like internal processes (capacity utilisation, quality), customers (customer satisfaction & retention), shareholders (dividends, contribution, margin)

Question 3

what are the two ways the management process can be classified by?

Answer 3

• by time scale (long term / strategic decisions OR short term / tactical decisions)
• by stage (planning, implementation, control)