Monday, May 13, 2019
Strategic Management Accounting in University Essay
Strategic Management Accounting in University - Essay ExampleThe strategies are implemented with the help of a number of activities whose progress has to be quantifyed in order to control the activities and assure the achievement of the goals of the organisations various type of consummation indicators are used by the organisation. In this segment the various forms of performance indicators used by the organisations including those which are used by the University of Newland has been analysed to assess the present techniques used by the counsel of the of University of Newland and identify the alternative techniques which can be used by the university to measure the performance. 2.1 Traditional method Traditionally organisations used to measure their performance with the help of various pecuniary techniques like ratio abridgment, trend analysis etc. These techniques were used to evaluate the performance of the companies or former(a) organisations and the results were often compar ed with that of the desired level of the organisation which is also termed as benchmark. Ratio analysis is done on the historical selective information that is after the activities have already been done and the financial statements have been prepared. Most of the data used in ratio analysis are mainly used from the financial statements. The ratio analysis helps to ascertain the financial position of the organisation as well as the profitability and the managerial performance of the organisation. This is a very useful and convenient performance indicator which is prevalent in todays time also. The main disadvantage of ratio analysis is that ratio analysis uses historical data which cannot be used to analyse the ongoing performance of the organisation. Another disadvantage of this kind of performance measurement diaphysis is that through this type of analysis... The paper tells that every organization whether it is a profit making organization or non-profit making organization has v arious mess and charge. The objectives or the organisations are focussed on this achievement of the vision and mission of the organisation. The organisation at various time adopt a number of strategies to achieve the mission of the organisation. These strategies are focussed on the objectives of the organisation. To achieve the organisational objectives it is very important to control the activities of the organisation. In this regard tools and techniques of steering accounting can be used to control the organisational activities and direct them towards the attainment of the organisational goals. Thus strategic management accounting helps the mangers to take strategic decisions by providing useful financial and nonfinancial information. After analysing the strategic environment, be and budgeting techniques it can be concluded that the education environment is quite favourable to successfully run universities scarcely the costing and budgeting techniques used by the University i s quite outdated and the University must adopt the newer approaches of cost allocation and budgeting which would mend the strategic position and efficiency of the organisation. The organisation should also adopt the newer performance indicators which would not only increment the efficiency of the organisation but will also help the organisation in achieving the strategic goals.