Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Strategic Models Based on Management and Accounting - Dissertation Example

Comments (0) Cite this document
The paper “Strategic Models Based on Management and Accounting” discusses the model introduced by Airey and Young, which holds that strategic factors take precedence over financial factors; in other words, projects should be evaluated and accepted on the basis of sound strategy…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful
Strategic Models Based on Management and Accounting
Read TextPreview

Extract of sample "Strategic Models Based on Management and Accounting"

Download file to see previous pages Kaplan (1986) argues that if a company considers only strategic motivations and continually invests in projects with bad financial returns, it will, of course, go bankrupt. Kaplan comments that conventional DCF models based upon available data should be employed. If a new technology project shows positive net present value it should be accepted. Kaplan introduces the caveat that a DCF analysis may be mathematically complex; the proper discount rate and all related alternatives must be introduced into the analysis of new technology projects. Traditional techniques such as the DCF should not be ignored; traditional techniques should be modified to meet the evaluation demands of different projects. Management must weigh all benefits, both tangible and intangible. If there are large differences, the project should be rejected; if intangible benefits cancel out or outweigh tangible benefits, the new technology project should be acceptable to management. The evaluation model he introduces compares intangible benefits to negative NPV. His Financial Appraisal method brings the company’s strategic factors together with financial returns; once a project is accepted alternative strategic benefits are set aside. If the project is accepted only because of financial considerations, strategic factors become moot.
Kakati & Dhar (1991) concur with this assessment and add that a two-level model might also be applicable, combining financial criteria with a careful analysis of strategic criteria. This strategic planning is included in the budget along with the benefits of new technology projects. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Strategic Models Based on Management and Accounting Dissertation, n.d.)
Strategic Models Based on Management and Accounting Dissertation. Retrieved from
(Strategic Models Based on Management and Accounting Dissertation)
Strategic Models Based on Management and Accounting Dissertation.
“Strategic Models Based on Management and Accounting Dissertation”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Strategic Models Based on Management and Accounting

Strategic Management Accounting

...?Electronic Boards plc OVERVIEW Management accounting system is a mechanism that accounts for the entire conduct of a firm and counts for the contribution of each jobs’ share in revenue and expenses, irrespective of its level of contribution. Management accounting system provides insight about the business in the present and also helps in determining future prospects of the company with forecasting tools. These systems prepare company to strengthen itself to counter the detrimental impact from cyclical as well as competitive pressures (Johnson, & Scholes, 2001). Management accounting techniques help the management of the organization to understand which department or product is more profitable than others and thus, it facilitates... the...
9 Pages(2250 words)Essay

Strategic management accounting

...and the decisions are made at the top management and then communicated to the other levels of management in the company (Renishaw, 2012a). This report would highlight the competitive strategy and strategic position of the Renishaw Company. This strategic analysis would be regarding the market sector, employment of appropriate strategic management and management accounting tools. The internal analysis of the company would be analysed using the SW of SWOT analysis (Strenghts, Weaknesses, Opportunities and Threats) analysis and the external environment of the company would be analysed using the OT of SWOT...
11 Pages(2750 words)Essay

Strategic management accounting

...reductions in the zero based budgeting. Also, it is very much expected of the budget manager to prioritise the entire set of activities by also providing and giving a reasonable explanation for prioritising any set of activities. On the other hand, activity based budgeting provides an additional source that can be used for the purpose of doing the activity of budgeting. In this budgeting, first certain targets are determined and highlighted. After determining the certain targets, then activities are highlighted and determined for the purpose of attaining and meeting those targets with the help of these activities. Afterwards, only those available and required resources are used that help...
12 Pages(3000 words)Assignment

Strategic Management Accounting

.../working_capital_management/operating_cycle_assignment_help_online_tutoring.htm, Last accessed: 24/3/2011 Anonymous, 2010, Business Plan Papers: Managing Working Capital,. Planware, Available at: Last Accessed: 24/3/2011 Book References: Chandra, P 2006, Financial Planning & Forecasting, Financial Management: Theory & Practice, Tata Mc. Graw Hill Publishing Co. Ltd, New Delhi. Jain, S & Narang, K 2006, Budgetary Control, Cost Accounting: Principles & Practice, Kalyani Publishers, New Delhi. Khan, M & Olsen, D 1993, Operations Budgeting, VNR’s Encyclopedia of Hospitality and Tourism, John Wiley & Sons, U.K. Shim, J & Siegel, J 2009,...
12 Pages(3000 words)Essay

Strategic Management Accounting better goal congruence as well as proper implementation at the lower level of an organisation (Puolamaki, 2006). The most popular techniques that are used within Strategic Management Accounting are the Balanced Scorecard approach and the Activity Based Costing system. The Balanced Scorecard approach focuses on both the financial as well as non financial factors that may affect an organisation, besides these factors, it also looks upon the factors that have an external influence on to the organisation as well. The Activity Based Costing system on the other hand focuses on the financial aspects of an organisation in depth and this further helps in...
7 Pages(1750 words)Essay

Strategic Management Accounting

...?Strategic Management Accounting Table of Contents Introduction 3 Part A 4 Part B 6 Market based transfer pricing 6 2. Full cost transfer pricing 8 3. Cost plus a mark-up transfer prices 9 4. Negotiated transfer prices 10 Conclusion 11 Reference List 13 Introduction Financial management and strategic management have a lot of difference in the way the two are applied (Bajaj, 2001). For example, the financial management is mainly used for core financial purposes like maintain the books of accounts and maintain the financial soundness of the company. Financial management is...
12 Pages(3000 words)Term Paper

Academic Models in Strategic Management

...CRITICALLY ANALYZE THE USE OF ACADEMIC MODELS IN STRATEGIC MANAGEMENT School Introduction Definitions of strategic management focus on effectiveness and organizational efficiency - "making the right decisions" and "using resources wisely" (Davidson et al, 2003, p. 7). The large volumes of theoretical work supporting management practice aim to develop optimal performance strategies. There are numerous techniques and approaches that support strategic decision making, like PEST, SWOT, portfolio matrixes, life cycles, value chain concepts and many others. The most important aspect of these academic tools is to "what extent...
4 Pages(1000 words)Essay

Management Accounting Models

...Management Accounting Models Table of Contents Introduction 2 The Budgeting Process 3 The Inappropriate Budgeting Process of Management 4 The Revised Budgeting Process 7 9 The Costs of Functional Areas and the Decreasing Sales Volume 9 Conclusion 11 Reference 12 Bibliography 14 Introduction “Finance is the life blood of a business” (Thukaram, 2007, p.14). Business organisations of every kind, including the non profit making ones, try to ensure that they are financially sound since it alone attests their sustainability in the industry as well as in the society at large. Production of goods and services involve several primary operational activities which require a...
10 Pages(2500 words)Essay

Strategic Management Accounting

...Strategic Management And Accounting – The case of C Ltd. ID number: Number: Table of Contents Table of Contents 2 a) Methods of product costing and effect on competitive strategy and cost control 2 Standard Costing 3 Activity-dependent Costing 3 Absorption Costing 4 b) Adoption of alternative transfer pricing approaches and their effects 5 Cost-dependent pricing 5 Market-dependent Pricing 7 Bargained Pricing 7 c) Alternatives to traditional incremental budgeting 7 Activity-dependent Budgets 8 Performance-dependent Budgets 8 Zero-Based Budgets 9 References 10 a) Methods of product costing and effect on competitive strategy and cost control Product costing refers to the process of calculating the amount of money spent by a company... . Also,...
12 Pages(3000 words)Essay

Strategic Management Accounting

...Strategic Management Accounting: United s Postal Service Introduction Strategic management accounting is a contemporary approach of accountingsystem that takes into consideration the both financial and non-financial factors arising out of internal and external business environment. Business model interrogation and control is a critical aspect of strategic management accounting which leads to evaluate an organization’s interaction between its product market and capital market, analyze the internal architecture of the company and its cost considerations so that it can be...
9 Pages(2250 words)Essay
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 Dissertation on topic Strategic Models Based on Management and Accounting for FREE!

Contact Us