E-Book Overview
Management accountancy has a dynamic role to play in the competitive strategy of modern global businesses. This book sets out key strategic principles and then assesses how management accountancy can affect and direct these strategies. Engaging case studies reveal how theories and concepts translate into real business practice. Throughout, the book emphasizes: - how accounting initiatives can trigger assessment and improvement of performance management - the importance of managerial decision making to good business practice - how today's management accountancy measures against current research Written for advanced undergraduate, postgraduate and MBA students taking courses on management accounting and performance measurement and management, the book will be also of interest to management and business consultants, professional accountants and accounting academics.
E-Book Content
M A LC OLM SMITH PERFORMANCE MEASUREMENT & MANAGEMENT A STRATEG I C A P P ROAC H TO MANAGEME N T AC C O U N T I N G R3011049-Prelims.qxd 2/7/05 1:14 PM Page i PERFORMANCE MEASUREMENT & MANAGEMENT R3011049-Prelims.qxd 2/7/05 1:14 PM Page ii R3011049-Prelims.qxd 2/7/05 1:14 PM Page iii PERFORMANCE MEASUREMENT & MANAGEMENT A STRATEGIC APPROACH TO MANAGEMENT ACCOUNTING Malcolm Smith R3011049-Prelims.qxd 2/7/05 1:14 PM Page iv © Malcolm Smith, 2005 First published 2005 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permission in writing of the publishers, or in the case of reprographic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside those terms should be sent to the publishers. SAGE Publications Ltd 1 Oliver’s Yard 55 City Road London EC1Y 1SP SAGE Publications Inc. 2455 Teller Road Thousand Oaks, California 91320 SAGE Publications India Pvt Ltd B-42, Panchsheel Enclave Post Box 4109 New Delhi 110 017 British Library Cataloguing in Publication data A catalogue record for this book is available from the British Library ISBN 1-4129-0763-2 ISBN 1-4129-0764-0 (pbk) Library of Congress Control Number: 2004116097 Typeset by Selective Minds Infotech Pvt Ltd, Mohali, India Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall R3011049-Prelims.qxd 2/7/05 1:14 PM Page v Contents Preface vii Acknowledgements ix 1 Introduction 1 2 Emerging Issues 7 Historical development 7 Management accounting research 9 3 4 5 6 Performance Measurement and Analysis 14 Strategic management accounting 15 Objectives 19 Situation audit (SWOT analysis) 20 Benchmarking 53 Resource-based view of the firm 57 Performance measurement alternatives 60 Strategy Alternatives 64 Creative thinking 65 Developing an innovation culture 68 Evaluation 75 Product and Customer Profitability 86 Accounting system implications 86 Product profitability 87 Customer profitability 89 Customer relationship management 103 Know Your Processes 108 Cost behaviour: random vari