Concepts of balanced scorecard and performance measurement, Cost Accounting

Assignment Help:

A college currently measures its performance by comparing the actual costs against its budgeted costs for the year.Now that the college is facing increased competition from Various colleges and private education providers, Deptt. professors has suggested that it needs to consider additional performance which measures such as those indicated by the Balanced Scorecard.

Explain the concepts of the Balanced Scorecard and how this approach to performance measurement could be used by the college.

The main concepts of the Balanced Scorecard is that

An organisation’s performance should not be measured on the basis of its financial results only.Other key performance indicators are improtantly relevant to an organisation’s success.
 
The balanced scorecard typically identifies Quadrants groups (or four) of performance indicator that would be suitable for most organisations, though each organisation is free to determine the performance indicators that are most relevant to its own needs. The typical quadrants are: customer perspective; internal business perspective; innovation and learning perspective; and financial perspective.
 
Many people believe that success in the non-financial performance measures will lead to success in the financial performance measures so that these other measures are leading measures whereas the financial measures are lagging measures.
 
The college could use the balanced scorecard to measure its success in other areas of its business. It is important for service businesses such as colleges to understand the wants of its customers and thus measures connected with the customer perspective are important. The
college may discover that particular types of courses are demanded by their customers and this may lead the college to develop new courses which can be measured using the innovation and learning perspective. 
 
The college can also look at how it operates its processes both in relation to its staff and its customers.  Improvements in these processes could be used to improve the financial results, perhaps, because costs savings can be made.


Related Discussions:- Concepts of balanced scorecard and performance measurement

Standard costing, behavioral aspect of standard costing

behavioral aspect of standard costing

Financial accounting, Financial Accounting It is the analysis, and rec...

Financial Accounting It is the analysis, and recording and classification of financial transactions and the ascertainment of how that information will be reported to the diffe

process costing, how to calculate total costing in weighted average metho

how to calculate total costing in weighted average method

Bad debts, These are losses on account of uncollectable debts. While the am...

These are losses on account of uncollectable debts. While the amount due from debtors is irrecoverable, it is termed as bad debts. Bad debts, being loss are closed through transfer

Analysis of prime cost and overhead variances, You are required to conduct ...

You are required to conduct a detailed analysis of all the prime cost and overhead variances. You must create a fictitious company (and a fictitious cost object) which has at least

Cost accounting, Cost Accounting Cost accounting has been defined via ...

Cost Accounting Cost accounting has been defined via many accounting scholars in different forums. There is no single watertight definition of cost accounting, however the var

Share capital of a company, A company has an authorized share capital of 25...

A company has an authorized share capital of 250 million divided into 1,500,000 ordinary shares of sh.100 each and 1,000,000 preference shares of sh.100 each. 1,000,000 ordinary sh

Quantitative and qualitative information - cost accounting, Quantitative an...

Quantitative and Qualitative Information in Accounting Systems The availability of information is the lifeblood of any type of management and cost accounting system. It is vi

Activity based costing or abc, Activity Based Costing or ABC Absorptio...

Activity Based Costing or ABC Absorption costing shows to be relatively straightforward way of adding overhead costs to units of production utilizing, more often than not, a v

Depreciable cost, A organization is evaluating a proposed 4-year project.  ...

A organization is evaluating a proposed 4-year project.  The depreciable cost will have the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installatio

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd