Nobody downloaded yet

Performance Management: Gwent Housing Association - Essay Example

Comments (1) Cite this document
In the paper “Performance Management: Gwent Housing Association” the author analyzes adaptation of suitable budgeting and costing techniques within the organization to reduce the impact of the economic recession. The boost in performance was only deemed to be achievable…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.8% of users find it useful
Performance Management: Gwent Housing Association
Read TextPreview

Extract of sample "Performance Management: Gwent Housing Association"

Download file to see previous pages The recent conference conducted by the Chartered Institute of Management Accountants heavily emphasized on creating value and improving performance during such torrid times. The boost in performance and the value creation was only deemed to be achievable if certain costing techniques were followed and those different costing techniques are evaluated further in order to give a better picture. Evaluation of the techniques discussed Marginal Costing “Marginal costing is a costing methodology that takes into account only the variable or marginal costs in the valuation of the cost of sales” (Mtetwa, 2010). The marginal costing technique values the stock at variable production cost. Marginal cost is considered to be the cost of producing an additional item or product and in marginal costing technique, only these techniques are allocated as the costs of sales while the fixed costs are treated as pertaining to a particular period and are allocated in full against the profit of the period in which they are sustained. Marginal costing technique is a good decision-making tool, the basic issue with marginal costing is that the use of this technique would alter the contribution with respect to the number of products sold which means that profits would increase with respect to the additional number of products sold, this would be as a result of the extra contribution earned. The drawback within Marginal Costing is that it ignores the prepaid sunk costs and any future committed costs within the short-term, this, as a result, affects the profit statement of the firm within the medium and the long-term (Steven, 2005). Absorption Costing “Absorption costing is a costing method which charges both variable and fixed costs in the valuation of the cost of sales” (Mtetwa, 2010). Absorption costing is a three-stage technique which involves allocation, apportionment, and absorption. The allocation step involves the direct overhead costs to be charged to their respective cost centers/units. The apportionment stage involves charging the overhead costs through primary and secondary apportionment. Primary apportionment involves charging overhead costs to both productions as well as the service cost centers while secondary apportionment engages the non-production and the service costs to the production centers. Finally, the overheads are absorbed into the production costs using a suitable absorption rate. This overhead absorption rate is based upon the budgeted costs and the budgeted activity levels. With absorption costing, there is no relationship between profit and the sales volume (as seen in Marginal costing). Under absorption costing, the revenue and the total profit would increase with respect to the total gross profit per unit and the amount of the overhead absorbed per unit. The mere benefit of using absorption costing is that it includes the entire costs pertaining to a particular product and hence this helps in better pricing of the product. The only setback of this method is that it is a rather complex method of monitoring profitability (Smith, 2007). Activity Based Costing Activity-based costing, also known as ABC, is a costing technique that has evolved rapidly and has made a huge mark within management accountants. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Performance Management: Gwent Housing Association Essay”, n.d.)
Retrieved de
(Performance Management: Gwent Housing Association Essay)
“Performance Management: Gwent Housing Association Essay”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
noe14 added comment 1 year ago
Student rated this paper as
This essay was always my weak point. I could never finish it on time. Still, after I found this particular essay, I understood how it should be done. So, I performed my research afterward and completed the essay in several hours, instead of days as it was previously.

CHECK THESE SAMPLES OF Performance Management: Gwent Housing Association

Help Gwent Association

...?Running Head: Help Gwent Association Help Gwent Association [Institute’s Help Gwent Association The purpose of Gwent Association is to provide low-income people with contemporary as well as affordable houses. As it is clear from its name that this association is not a profit making organization, therefore it needs to strategize its policies and costs in a way that it is able to meet the demands of the people. The demand of these houses has increased, at the same time Welsh Government has reduced its funds by 3%, which it used to give to...
12 Pages(3000 words)Essay

Performance management

... The Performance Management Process in Colorado Boulder The review of literature covers readings and materials how performance management process has evolved and practiced in Colorado Boulder University. There are several studies that summarized the importance of performance management (PMP) and defined how it is done. In a similar state as in Berkeley, University of California, the PMP is a mission carried out in the campus through the individual and combined efforts of its employees. In this process, employees do their best because they know that their contributions are acknowledged and recognized. In PMP, an on-going process of communication is developed between the supervisor and the employee throughout the year in achieving... the...
2 Pages(500 words)Case Study

Performance Management

..., in high technology firms, technological innovations becomes critical in responding to fast changes, so much so that innovation highly depends on acquiring new knowledge. 3. As a senior leader in an organization what can you do to change the culture and in turn increase performance of the business? To change an organizational culture is a difficult task because it has been entrenched and grown over time. Often times, people and management are too comfortable in it to attempt for a change and only a dramatic or significant event can change this culture like bankruptcy, loss of sales and customers or maybe lives. In starting a cultural change, senior leader should make an assessment, results of which could...
3 Pages(750 words)Essay

Performance management play and people will apply self-direction and control in attaining organisational objectives, thus eliminating the need of coercion and punishments. In addition, employees will accept and seek more responsibility if rewards are associated with achievement and creativity of the individual employee. McGregor suggested that independent teams with high self-direction and proper leadership skills will improve the organisational performance. Abraham Maslow contributed to the theory of performance management through his theory of hierarchy of needs. The theory asserts that employees have a hierarchy of needs whereby individuals seek to fulfill the lower needs in order to...
6 Pages(1500 words)Essay

Performance Management

.... Using performance management can help track employee performance better. The total compensation of employees increases. Despite the benefits associated with performance management there are also cons associated with its implementation. Often work related stress increases as a direct consequence of the use of performance management. Cooperation and teamwork decreases among the employees. When performance management is used competition among the laborers rises. Friction and conflict may surge. For performance management...
3 Pages(750 words)Assignment

Performance Management

.... Such scenario is mostly accompanied by the need of making several considerable changes in budget which are not feasible for the companies adopting traditional budgeting model. It has been argued that owing to the inflexibility associated with the traditional budgeting model, the entire budget often becomes unproductive to be utilised resulting in wastage of valuable resources and time altogether (Shim & et. al., 2011; American Management Association, 2009). Besides, traditional budgeting hampers organisational efficiency in certain other way as well. Notably, most of the companies follow an approach where they compensate the employees on the basis of the performance of...
10 Pages(2500 words)Essay

Medical Group Management Association

... of the physician about the patient’s safety, thus creating a benchmark output for the physician. Better care and safety, lesser liability and better interaction is focused on to achieve higher level of performance and delivery on the part of the physician. Medical profession is a highly respected profession in the country, and that is because it helps to improve our lives. MGMA does warrant credit for doing that job so well. References " Medical Group Management Association (MGMA) ." Medical Group Management Association (MGMA) . N.p., n.d. Web. 23 Feb. 2011. .... to me, they would be PHR Guide and PPPSA (Medical Group Management Association (MGMA). With the ready help of information about a patient,...
1 Pages(250 words)Personal Statement


...1. Planned Maintenance Issues 1. Type and Location of Building The building of interest is a block dwelling along with cottage type dwellings located in Salford, England. The block dwelling building will be concentrated on because it has some planned maintenance in the pipeline. The block dwelling is considered as part of social housing and is managed by a private registered provider of social housing (PRP). Another major reason for choosing this building is the fact that it represents common problems found with social housing especially in terms of typical maintenance issues that tend to arise. Figure 1 - Black Friars, Salford The building as well as the community is...
10 Pages(2500 words)Essay

Research Proposal about: Moral and Motivation at Circle Housing Association

...MORAL AND MOTIVATION AT CIRCLE HOUSING ASSOCIATION Introduction Circle Housing Association is an organisation which provides affordable housing and other related services within the United Kingdom. The organisation mainly provides the support for various individuals residing within the large cities. This has made the group to become one of the largest housing associations within the United Kingdom. The association provides funding for different individuals and manages many homes within the country. The organisation operates various small associations within the country...
5 Pages(1250 words)Assignment

Performance Management

...behaviors that complement with the job description and are important for job performance. The key behaviors that are important for the better job performance are: Effective communication: For retail sales associates, it is necessary to convey complete information and express facts and thoughts in a clear manner. Listen and understand actively to every situation in order to respond creatively. It is essential to adjust communication style according to customers and situations. Create good relationships with customers so that they do not feel reluctant to repeat the store anytime. Inclusiveness: Interact suitably with team, business partners, employees, community and customers without...
4 Pages(1000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Performance Management: Gwent Housing Association for FREE!

Contact Us