(BQ) Part 2 book "Management accounting" has contents: Preparing a budget, control through budgeting, standard costs, performance evaluation and feedback reporting, divisional performance, business strategy and management accounting,.and other contents. | Part 3 PERFORMANCE MEASUREMENT AND CONTROL Managers need information to help them measure relative successes and failures in performance. They also need information to help control operations. Evaluation of performance and control of activity requires a forward-looking plan, followed by a system that monitors achievements against that plan. Part 3 explains how management accounting helps answer questions of the following type: l l l l l l l What is our budget for all activities for the next 12 months, analysed into components for each part of the organisation? How can we use budgets for performance measurement and control? What are the limitations of budgets as a tool of management planning and control? How should information be presented to various levels of management and to employees within the organisation, to give information on performance and feedback for improvement? How is the performance of a division within an organisation measured? How do standard costs help in setting performance targets and monitoring achievements? What special methods are required to deal with continuous processes? Chapters 13 and 14 explain the use of budgets and some of the challenges faced in budgeting. In particular, Chapter 14 explains how to compare budgets with actual outcomes by calculating variances. Chapter 15 extends the analysis of variances by describing standard costing. Chapter 16 describes methods of evaluating and reporting on performance within departments of an organisation, while Chapter 17 extends this analysis to divisional performance. LEVEL 2 LEVEL 1 Part 3 PERFORMANCE MEASUREMENT AND CONTROL Chapter 13 Preparing a budget Chapter 14 Control through budgeting Chapter 16 Performance evaluation and feedback reporting Chapter 15 Standard costs Chapter 17 Divisional performance Chapter 13 Preparing a budget Real world case This case study shows a typical situation in which management accounting can be helpful. Read the case study now but only .
