Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30127
Strategic Management Accounting: Implementation and Control

Authors: Alireza Azimi Sani

Abstract:

This paper discusses the design characteristics management accounting systems should have to be useful for strategic planning and control and provides brief introductions to strategic variance analysis, profit-linked performance measurement models and balanced scorecard. It shows two multi-period, multiproduct models are specified, can be related to Porter's strategy framework and cost and revenue drivers, and can be used to support strategic planning, control and cost management.

Keywords: Accounting, balanced scorecard, profit-linked, strategic management, variance analysis.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1058577

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 4468

References:


[1] Ward, K. (1992), Strategic Management Accounting, Butterworth- Heinemann, Oxford.
[2] Bromwich, 1990, "The case for strategic management accounting: the role of accounting information for strategy in competitive markets", Accounting, Organizations and Society,Vol. 15 Nos 1/2, pp. 27-46.
[3] Kaplan, R. S., and D. P. Norton, The Strategy-focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment, Harvard Business School Press, Boston, MA USA, 2000.
[4] Shank, J. K., and V. Govindarajan, Strategic Cost Management: The New Tool for Competitive Advantage, The Free Press, New York, NY USA, 1993.
[5] Simons, R., Performance Measurement and Control Systems for Implementing Strategy: Text and Cases, Prentice Hall, Upper Saddle River, NJ USA, 2000.
[6] American Productivity Center, Total Performance Measurement, American Productivity Center, Houston, TX USA, 1981.
[7] Banker, R. D., H. Chang, and S. K. Majumdar, "Analyzing the Underlying Dimensions of Firm Profitability", Managerial and Decision Economics, 14(1) (1993), 25-36.
[8] Banker, R. D., S. M. Datar and R. S. Kaplan, "Productivity Measurement and Management Accounting", Journal of Accounting, Auditing and Finance, 4(4) (1989), 528-554.
[9] Banker, R. D., and H. H. Johnston, "Strategic Profitability Ratio Analysis: An Application to the U.S. Airline Industry Following Deregulation", Working Paper, Carnegie Mellon University, 1989.
[10] Porter, M. E., Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, New York, NY USA, 1980.
[11] Porter, M. E., Competitive Advantage: Creating and Sustaining Superior Performance, The Free Press, New York, NY USA, 1985.
[12] Porter, M. E., "Towards a Dynamic Theory of Strategy", Strategic Management Journal, 12 (Winter Special Issue 1991), 95-117.
[13] Porter, M. E., "What Is Strategy?", Harvard Business Review, 74(6) (November-December 1996), 61-79.
[14] Johnston, H. H., and R. D. Banker, "Economic Justification for the Use of Profit-linked Performance Measures in Research and Practice", Working Paper, September 2000a.
[15] Johnston, H. H., and R. D. Banker, "The Validity of Profit-linked Performance Measures as Indicators of Low Cost and Product Differentiation Strategies: Empirical Evidence from U.S. Airlines following Deregulation", Working Paper, October 2000b.
[16] Kaplan, R.S. and Norton, D.P. 1996, Using the Balanced Scorecard as a Strategic Management System, January-February, Harvard Business Review, pp.75-85.
[17] Grifell-Tatjé, E., and C. A. K. Lovell, "Profits and Productivity", Management Science, 45(9) (September 1999), 1177-1193.
[18] Cooper, R., and R. S. Kaplan, The Design of Cost Management Systems: Text and Cases, Second Edition, Prentice Hall, Upper Saddle River, NJ USA, 1999.
[19] Klammer, T., Editor, The CAM-I Capacity Interest Group, Capacity Measurement and Improvement, Irwin Professional Publishing, Chicago IL USA, 1996.