ManageMent accounting in support of the strategic ManageMent process – for More inforMation viSit www.ciMaglobal.coM 10 SMa technique See appendix a for explanation of technique) degree utiliSed by participantS to thiS Study Activity based costing Used by one participant as a one-off exercise Attribute costing Not used Benchmarking Used to some degree by 50% of participants, particularly industry and best in class benchmarking Brand value budgeting and monitoring Not used Capital budgeting Investment appraisal techniques used by the majority of participants Competitor cost assessment Market position monitored and recognition of who competitors are. No real strategic analysis undertaken but prices and products monitored. Competitive position monitoring Competitor appraisal based on published financial statements Customer profitability analysis Undertaken to varying degrees of sophistication by all participants but only to contribution level Integrated performance measurement – balanced scorecard Non-financial data utilised both in routine reporting via monthly Board Pack and in strategic decisions, but formal Balanced Scorecard not used Life-cycle costing Not used Quality costing Not used Strategic cost management Not used although understanding of fixed and variable costs stressed by participants Strategic pricing Mostly cost plus and market pricing used Target costing One participant utilised target costing to good effect Value chain costing Not used (Strategic management accounting techniques compiled from surveys undertaken by guilding, cravens and tayles, 2000; roslender and hart, 2003; cadez, hocevar and Zaman, 2005) tAble 2. strAtegiC mAnAgement ACCounting teChniques
