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ACCA F2

Management Accounting (MA)

管理会计

ACCA Lecturer: Belinda Qiu

Copyright © ACCAspace.com ACCAspace 中国ACCA特许公认会计师教育平台 2

Part D Reconciliation of budgeted and actual profit

1. Operating statement under AC and MC

2. Investigation of variances


Part D Reconciliation of budgeted and actual profit

1. Standard costing system

2. Cost variance calculation and analysis


Part E Performance measurement

I. Performance measurement overview

II. Performance measurement –application

III. Cost reductions and value enhancement


Part E Performance measurement overview

1. Mission statement

2. Critical success factor

3. Key performance indicator

4. Financial performance measurement

5. Non-financial performance measures

6. 3E

7. The balanced scorecard

8. External consideration



1. Mission statement



1.1 The elements of mission



1.2 The importance of mission



2. Objectives

Operational objective

Non-operational objective

Long-term objective

Short-term objective

Strategic objective

Tactical objective

operational objective



3. Critical success factor and key performance indicators

3.1 Critical success factor



3.2 The Link between mission statement and KPIs



Example:



4. Performance measurement



4.1 Financial performance measurement

Profitability, liquidity, financial risk



4.1.1 Profitability

(1) ROI:

Return on capital employed=PBIT(or net profit)

capital employed



(2) Residual income



Advantage and disadvantage of ROI and RI



(3) Gross profit margin=gross profit

sales=

sales−cost of sales

sales

(4) Net profit margin=net profit

sales=

sales−all costs

sales



(5) Asset turnover=sales

capital employed

-



4.1.2 liquidity

(1)

(2)

(3)



(4)

(5)



4.1.3 risk

(1)

(2)



4.1.4 limitation of FPIs



4.2 Non-financial performance measurement



4.2.2 why NFPIs is better than FPIs



4.3 efficiency, effectiveness, economy 3E

4.3.1 for public sector



4.3.2 3E



4.4 the balanced scorecard

4.4.1 introduction

The balanced scorecard is a strategic management technique for

communicating and evaluating the achievement of the strategy and

mission of an organization. It comprises an integrated framework of

financial and non-financial performance measures that aim to clarify,

communicate and manage strategy implementation.



4.4.2 example



4.4.3 advantage and disadvantage



4.5 external consideration



4.5.1 economic and market conditions



4.5.2 government regulations



Q1. Which of the following are elements of a mission statement?

(1) Purposes

(2) Strategy

(3) Values

(4) Culture

A. 1234

B. 12

C. 2

D. 23



Q2. X Co. monitors the % of total sales that derives from products

developed in the last year. Which part of the balanced scorecard

would this measure be classified under?

A. Financial perspective

B. Customer perspective

C. Process efficiency

D. growth



Q3. Why would a company want to encourage the use of non-financial

Performance indicators ?

A. To encourage short-termism

B. To look at the fuller picture of the business

C. To enable results to be easily manipulated to the benefit of the manager

D. To prevent goal congruence



Q4. which of the following would not be expected to appear in an or

ganization’s mission statement ?

A. The organization’s value and beliefs

B. The products or services offered by the organization

C. Quantified short term targets the organization seeks to achieve

D. The organization’s major stakeholders



Q5. A government body uses measures based upon the 3Eto measure

value for money generated by a publicly funded hospital. In considers

the most important performance measures to be “cost per

Successfully treated patient”.

Which of the 3E’s best describes the above measure?

A. Economy

B. Effectiveness

C. Efficiency

D. externality



Q6. A division has a residual income of $240,000 and a net profit

before imputed interest of $640,000. If it uses a rate of 10% for

Computing imputed interest on its interest on its invested capital,

what is its return on investment to the nearest whole number?



Q7. which of the following are suitable measures of performance at

the strategic level?

(1) ROI

(2) Market share

(3) Number of customer complaints

A. 12

B. 2

C. 23

D. 13

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