Week_10_Management_Accounting

Week_10_Management_A - Prepared by Bonnie Hampson WEEK 10 Strategic Management Accounting Performance Measurement Objectives Upon successful

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Prepared by Bonnie Hampson Objectives Upon successful completion of this module you should be able to: Define strategic management accounting; Explain the debate surrounding factors that have affected strategic management accounting; Appreciate the debate surrounding the role of accountants in adopting and implementing strategic management accounting; Define performance measurement; Appreciate a selective review of the literature that addresses adoption, implementation and success of strategic management practice of performance measurement; Explain the behavioural consequences of performance measurement when it is linked with incentive payments. Introduction: In the first section of this module I thought it best to introduce the general concept of strategic management accounting (SMA). By examining the definition of SMA and the extent of its adoption and implementation it is hoped that a context can be developed upon which you can review the current management accounting practice of performance measurement, which is the main focus of this module. In the second section of this module I introduce you to the strategic management practice of performance measurement. In this part of the module I introduce the practice of performance measurement. The readings provide you with an understanding of some of issues facing organisations which use performance measurement to gauge success in achieving its objectives. Such an appreciation will contribute toward building on the philosophical frameworks of performance measurement which we will cover in the later modules. A note about the Reading Materials for this course: 1
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Prepared by Bonnie Hampson I have spent a fair amount of effort to summarize and discuss the key points contained in the Required Readings. These summaries and discussion points appear in the lecture slides and weekly communication letter. Obviously you will benefit from reading the original articles. The content knowledge of these Required Readings is examinable. Additional Reading is provided for those students who wish to extend their knowledge beyond the minimum. Some of these readings you might find particularly useful as a reference for your Assignment 2. PART A: Strategic Management Accounting What is SMA? Strategic management accounting is the ‘new kid on the block’. It was first brought to light in 1981 by Simmonds who defined strategic management accounting as: “... the provision and analysis of management accounting data about a business and its competitors for use in developing and monitoring the business strategy (p.26).” Despite SMA being first proposed in 1981 there is much presented in the literature concerning the extent of adoption of SMA and the reasons underlying an apparent low adoption rate. There is no agreed definition of SMA. However, a number of definitions have been
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This note was uploaded on 07/31/2011 for the course MGMT 2027 taught by Professor Shak during the Three '07 term at Queensland.

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Week_10_Management_A - Prepared by Bonnie Hampson WEEK 10 Strategic Management Accounting Performance Measurement Objectives Upon successful

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