Coursework Management Accounting Case Study Example | Topics and Well Written Essays - 1000 words

Coursework Management Accounting - Case Study Example s a break from factors not normally captured in the financial statements.The cash budget is a valuable instrument that can be used by the different offices in the company, and perhaps, it may have a bearing on the success of SPECTRA. Below is a design of a balance scorecard detailing the objectives, measures, targets and initiatives that can assist these officers in the company; Human Resources Director, Operations Director, Marketing Director, Financial Director, and Chief Executive Officer. A good balanced scorecard, typically, properly define the objectives of a company, more, the balance score should provide directions on cash balances of a company, profitability, market share amongst other important data. Secondly, the balance scorecard, based on stated objectives, should provide the measures that are in place to ensure the achievement of the stated objectives. Finally, initiatives should also be incorporated to ensure that the objectives are achieved. the scorecard designed for SPECTRA is important as it helps the firm in monitoring progress and evaluating performance. For instance, a reduction of the level of industrial action from 35% to 10 % can immensely aid the company in reducing the variable overhead costs,, which goes along the way in improving the image of the company and the profitability level. Certain pitfalls can affect implementation of the balanced scorecard, but not design of the scorecard. Niven (2006 301-302) identifies ten potential pitfalls which resonate with the case study. For instance, if SPECTRA lacks of business strategy, a lack of guiding rationale for the balanced scorecard program, lack of consistency in the management practices. In addition, the lack of proper team development and a premature linking of the scorecard to management processes can potentially lead to a pitfall. The assumptions in designing the scorecard were three and they included the following. First, the objectives in the scorecard are complimentary as one