1 Accounting & Control Hansen▪Mowen▪Guan Chapter 13The Balanced Scorecard: Strategic-Based Control... Activity-Based versus Strategic-Based Responsibility Accounting • The activity-based
Trang 1COST MANAGEMENT
COPYRIGHT © 2009 South-Western Publishing, a division of Cengage Learning.
Cengage Learning and South-Western are trademarks used herein under license 1
Accounting & Control
Hansen▪Mowen▪Guan
Chapter 13The Balanced Scorecard:
Strategic-Based Control
Trang 2Study Objectives
1 Compare and contrast activity-based and
strategic-based responsibility accounting systems.
2 Discuss the basic features of the
Balanced Scorecard.
3 Explain how the Balanced Scorecard
links measures to strategy.
4 Describe how an organization can
achieve strategic alignment.
Trang 3Activity-Based versus
Strategic-Based Responsibility Accounting
• The activity-based system adds a process perspective to the financial perspective of the functional-based responsibility
Trang 4Activity-Based versus Based Responsibility Accounting
strategic-based performance management system that typically identifies objectives and
measures for four different perspectives.
– The financial perspective
– The customer perspective
– The process perspective
– The learning and growth perspective
Trang 5Activity-Based versus Based Responsibility Accounting
Trang 6Activity-Based versus Based Responsibility Accounting
Trang 7Activity-Based versus Based Responsibility Accounting
Trang 8Activity-Based versus Based Responsibility Accounting
Trang 9Basic Concepts of the Balanced
Scorecard
• choosing the market and customer segments the
business unit intends to service
• identifying the critical internal and business processes that the unit must excel at to deliver the value
propositions to customers in the targeted market
Trang 10Basic Concepts of the Balanced
Scorecard
Process value analysis
– is fundamental to activity-based responsibility
accounting
– focuses on accountability for activities rather than costs
– emphasizes the maximization of systemwide
performance instead of individual performance.
– is concerned with:
• Driver analysis
• Activity analysis
• Performance measurement
Trang 11Basic Concepts of the Balanced
Scorecard
Trang 12Basic Concepts of the Balanced
Scorecard
Trang 13Basic Concepts of the Balanced
Scorecard
Only financial measure among core objectives
Trang 14Basic Concepts of the Balanced
Scorecard
Customer value is the difference between
– Realization … what the customer receives
and
– Sacrifice … what the customer gives up
Trang 15Basic Concepts of the Balanced
Scorecard
• Internal business process perspective
– Describes the internal processes needed to provide value for customers and owners
• Process value chain consists of three
processes
– Innovation process
– Operations process
– Postsales process
Trang 16Basic Concepts of the Balanced
Scorecard
• Responsiveness: The time it takes a
company to respond to a customer order
– Cycle time (manufacturing) is the length of
time it takes to produce a unit of output from the time materials are received until the good
is delivered to finished goods inventory.
– Velocity is the number of units of output that
an be produced in a given period of time.
Trang 17Conversion Cost Example
Basic Concepts of the Balanced
Scorecard
Trang 18Basic Concepts of the Balanced
Scorecard
Trang 19Basic Concepts of the Balanced
Scorecard
Trang 20Basic Concepts of the Balanced
Scorecard
Trang 21Linking Measures to Strategy
Trang 22Strategic Management
Trang 23COST MANAGEMENT
COPYRIGHT © 2009 South-Western Publishing, a division of Cengage Learning.
Cengage Learning and South-Western are trademarks used herein under license 23
Accounting & Control
Hansen▪Mowen▪Guan
End Chapter 13