5 - Strategic Management Accounting Flashcards
what is a balanced scorecard?
a strategic mgmt tool that integrates financial and non-financial performance measures in a single report
what is the aim of a balanced scorecard?
communicating strategy of the company to the employees and to shift focus from profit maximization to value creation
what is benchmarking?
measuring products and services against those of other best performing orgs
what is business process reengineering?
examining business processes and making substantial changes to how the org operates and redesign of how work is done
what is a cost of quality report?
indicates total cost to the org of producing p/s that do not conform with quality requirements
what is just-in-time production?
producing products at the required quality and quantity at the precise time required
what is kaizen costing?
making improvements to a process during manufacturing through small incremental amounts, rather than large innovations
what is target costing?
focuses on managing cost through a product’s planning and design phase by establishing a target cost for the p/s that is derived from target selling price
what is total quality mgmt?
customer-orientated process of continuous improvement that focuses on delivering p/s of consistent high quality in a timely manner
processes for continuous improvement?
- bus process reengineering
- total quality mgmt
- kaizen costing
what is PESTEL analysis used for?
to analyze how various external elements may impact their company
what are the components SWOT analysis?
strengths
weaknesses
opportunities
threats
what is the purpose of Porter’s 5 forces?
to determine the nature of competition in the industry
what are the components of Porter’s 5 forces?
- threat of new entrants
- bargaining power of suppliers
- bargaining power of customers
- threat of substitute products
- degree of competitive rivalry
what is the objective of benchmarking?
to find out how the process can be improved and ensure that the improvements are implemented
what does business process reengineering focus on?
- simplification
- cost reduction
- improved quality
- enhanced customer satisfaction
what is the diff between kaizen and target costing?
both focus on cost reduction. TC goes through the product design. KC goes through production processes and increased efficiency. TC has higher potential for cost reduction
what changes result from JIT purchasing?
- smaller, more frequent purchase orders
- fewer supplies for each item
- less paperwork and inspection
which two systems can be used for managing materials in manu companies?
- ERP
- JIT
what is ERP?
- enterprise resource planning
- a system that considers first the amount and timing of goods demand, then determines the derived demand for resources (materials, components)
what are the features of JIT production?
- production line focuses on actual customer demand
- minimizing setup time and lead-time
- production line is stopped if parts are absent/defective to create urgency about fixing issues
what are the four areas of performance measured by the balanced scorecard?
1) financial perspective
2) customer perspective
3) internal business perspective
4) learning and growth perspective
what is the purpose of strategy and strategic positioning?
finding the optimal mix of 3 strategies:
- cost leadership
- differentiation of products
- focusing on a niche in the market
what does business process reengineering aim to improve?
the key business processes
