BU247 Lecture Notes - Lecture 2: Balanced Scorecard, Pest Analysis, Strategy Map
Document Summary
Retrospective, reporting, and summarizing in financial terms the results of past decisions and transactions. Oriented to external stakeholders (investors, creditors, regulators, tax authorities) Consistent with rules by standard setters specifies contents of reports, rules for how content gets developed, and how content will be presented. Both retrospective, providing feedback about past operations, and prospective, incorporating forecasts and estimates future events; uses both financial and nonfinancial measures. Oriented to meet decision-making needs of employees and managers inside organization; good management accounting. No prescribed form or rules about its content, how the content is developed, and how content is to be presented no standard setter or regulator specifically influences design of management accounting information and systems. Early 19th century: management accounting consisted of systems to measure the cost of producing individual products (piece of clothing, weapon) Middle 19th century: railroad managers implemented large, complex costing systems to compute costs of carrying different freights supported efficiency improvements and pricing decisions.
