Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed

Do not use only objective measures in the scorecard. 4

Download 1.72 Mb.

View original pdf

Page	462/469
Date	01.12.2021
Size	1.72 Mb.
	#57828

1 ... 458 459 460 461 462 463 464 465 ... 469

solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1

3
Do not use only objective measures in the scorecard.
4
Do not fail to consider both costs and benefits of different initiatives before including these initiatives in the scorecard.
5
Do not ignore non-financial measures when evaluating managers and employees.
22.7
Engineered costs result from a cause-and-effect relationship between the cost driver, output and the (director indirect) resources used to produce that output. Discretionary costs arise from periodic (usually) annual decisions regarding the maximum amount to be incurred. There is no measurable cause-and-effect relationship between output and resources used.
22.8
SMA is a form of management accounting in which the emphasis is placed on information that relates to factors external to the firm, as well as non-financial information and internally generated information.

Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
22.9
SMA practice is organisation-specific because all the factors that are generated in the analysis are very specific to the company and it is only by being specific to the company that the true strategic objectives and actions can be prescribed.
22.10
SMA’s potential is affected by strategic product costing and performance measurement the firm’s product markets and competitive market forces and the assessment of organisational strengths over a certain length of time.

Download 1.72 Mb.

Share with your friends:

1 ... 458 459 460 461 462 463 464 465 ... 469