References

Question 1

4 examples of SMA techniques
(Session 6/7)

Answer 1

Roslender and Hart, 2003
1. Target costing
2. Life-cycle costing
3. Customer profitability analysis
4. Activity-based management

Question 2

To illustrate the challenges and merits of open-book accounting

(Session 8)

Answer 2

Kajüter and Kulmala, 2005
- can reference this for the definitions of OBA also
1. Eurocar case, a German car manufacturing network {mainly the merits/successes}
2. 3 Finnish manufacturing networks

Question 3

Example to interpret the role of an ABC system in organisational change {pro and con}

(Session 9)

Answer 3

Soin et al., 2002
- In a UK-based multinational bank
1. the ABC system allowed NON-ACCOUNTANTS in the bank to appreciate COST DATA more,…
- …by providing a new set of categories through which individuals could order and structure their cost data

2. RELUCTANCE to employ the full strategic potential of ABC due to factors like MANAGERIAL CONSERVATISM & a desire to maintain previous levels of MANAGERIAL DISCRETION

Question 4

3 factors that must be present for potential for Management Accounting change + 3 barriers to implementation, eg. of balanced scorecard

(Session 9)

Answer 4

Kasurinen, 2002
1. Motivators, Catalysts and Facilitators
» Motivators - related to change in general, eg. competitive market, organisational structure
» Catalysts - directly associated w/ the change, eg. poor financial performance, loss of market share, launch of competing product
» Facilitators - necessary but not sufficient, eg. facilitating role of acct. staff, acct. computing resources, degree of autonomy from parent company
2. confusers, frustrators and delayers
- In a Finnish metals group
» Confusers - differences in goals between the division and biz unit management
» Delayers - lack of clear-cut strategies in the BSC

• If the business unit management is unable to send CLEAR STRATEGIC SIGNALS to employees, it is difficult to reach the project’s goals listed in the BSC.
• COMPLEX PROJECT ENVIRONMENT - lack of COORDINATION between various projects can create frustration and suspicion towards new initiatives in an org.
• The absence of a STRONG LEADER, eg. resignation of the division general manager, can reduce the MOTIVATION of the biz unit to implement the BSC

Question 5

3 limitations of the usefulness of Big data

(Session 10)

Answer 5

Warren et al., 2015 “How will Big Data Change Accounting”
Usefulness of big data to companies is limited to…
1. quantity (lack of data),
2. quality (irrelevant data / not credible source)
3. accessibility (lack of expertise in extracting information).

Question 6

Taken from Session 10 Podium Data case,
horizontal integration is usually pursued with which type of strategy? What about vertical integration?

Answer 6

Horizontal integration: cost leadership strategy

Vertical integration: product differentiation strategy