1、 ACCA Paper P5Advanced performance management (APM)Essential text British library cataloguinginpublication data A catalogue record for this book is available from the British Library.Published by: Kaplan Publishing UK Unit 2 The Business Centre Molly Millars Lane Wokingham Berkshire RG41 2QZ ISBN 97
2、8 1 84710 552 3 Kaplan Financial Limited, 2008Printed and bound in Great Britain.AcknowledgementsWe are grateful to the Association of Chartered Certified Accountants and the Chartered Institute of Management Accountants for permission to reproduce past examination questions. The answers have been p
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4、N PUBLISHINGContents Page Chapter 1 Introduction to strategic management accounting 1Chapter 2 Approaches to budgets 45Chapter 3 Changes in business structure and management accounting 77Chapter 4 The impact of information technology 101Chapter 5 Environmental influences 117Chapter 6 Performance mea
5、surement systems and design 153Chapter 7 Financial performance measures in the private sector 183Chapter 8 Divisional performance appraisal and transfer pricing 207Chapter 9 Performance management in notforprofit organisations 251Chapter 10 Nonfinancial performance indicators 277Chapter 11 Current d
6、evelopments in performance management 315Chapter 12 Questions & Answers 361KAPLAN PUBLISHING iiiiv KAPLAN PUBLISHINGPaper Introduction vchapterIntroHow to Use the Materials These Kaplan Publishing learning materials have been carefully designed to make your learning experience as easy as possible an
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17、 format of your exam please see your Complete Text or go online.Online subscribers The Syllabus Paper background Objectives of the syllabus Core areas of the syllabus Syllabus objectives and chapter references The examination Examination format Paperbased examination tips Study skills and revision g
18、uidance Preparing to study Effective studying Further reading You can find further reading and technical articles under the student section of ACCAs website.viii KAPLAN PUBLISHING20152015年ACCAACCA考试内部资料，点击链接：http:/ to strategic management accountingChapter learning objectivesUpon completion of this
19、chapter you will be able to: explain the role, for organisations in general, of strategic management accounting in strategic planning and control describe the role of corporate planning in: clarifying corporate objectives making strategic decisions checking progress towards the objectives describe,
20、for organisations in general, the purpose, content, structure and potential problems of a mission statement describe the ways in which high level corporate objectives are developed for organisations in general identify, for a given scenario or in general, strategic objectives and describe how they m
21、ay be incorporated into the business plan and cascaded down the organisation compare planning and control at the strategic and operational levels within a business entity explain how organisational survival in the longterm necessitates consideration of life cycle issues explain the main aspects of s
22、trategic management accounting in the context of multinational companies explain, for organisations in general, the scope for potential conflict between strategic business plans and shortterm localised decisions explain, in general and for a given scenario, how SWOT analysis may assist in the perfor
23、mance management process1chapter1 describe, in outline, the benefits and difficulties of benchmarking performance with best practice organisations evaluate how risk and uncertainty play an especially important role in longterm strategic planning and decision making that rely upon forecasts of exogen
24、ous variables assess the impact government policy can have on an organisation in general and its strategy formulation and implementation.Introduction to strategic management accounting2 KAPLAN PUBLISHING1 The role of strategic management accountingThe strategic planning process was examined in detai
25、l in the P3 paper. In P5 the focus is more on the performance management aspects of strategic planning and the role of strategic management accounting.Strategic analysis, choice and implementationJohnson and Scholes 3stage model of strategic planning is a useful framework for seeing the bigger pictu
26、re of performance management and strategic management accounting issues.Within this, the role of critical success factors (CSFs) is central to performance management:chapter 1KAPLAN PUBLISHING 3Defining strategic management accountingHistorically the role of the management accountant was often limit
27、ed to the implementation stage summarised above with a focus on operational budgeting, target setting and control. In many respects this is the emphasis of the F5 paper.The term strategic management accounting has come into common use more recently. It refers to the full range of management accounti
28、ng practices used to provide a guide to the strategic direction of an organisation. Strategic management accounting gives a financial dimension to strategic management and control, providing information on the financial aspects of strategic plans and planning financial aspects of their implementatio
29、n. It supports managers throughout the organisation in the task of managing the organisation in the interests of all its stakeholders. Strategic management accounting places an emphasis on using information from a wide variety of internal and external sources in order to evaluate performance, apprai
30、se proposed projects and make decisions. It focuses on the external environment, such as suppliers, customers, competitors and the economy in general as much as on the organisation itself.Introduction to strategic management accounting4 KAPLAN PUBLISHINGNote that many of the tools and techniques stu
31、died in F5 (and some in F9) are still examinable in P5, including the following: Strategic management accounting monitors performance in line with the organisations strategic objectives in both financial and nonfinancial terms. costing methods, e.g. target costing, life cycle costing limiting factor
32、 analysis relevant costing risk techniques, e.g. expected values, minimax regret, maximin, maximax budgeting, e.g. flexed budgets forecasting techniquese, e.g. hilow, time series, learning curves standard costing.Job descriptions Aspects of strategic management accounting are being incorporated in m
33、any management accounting roles. For example, job descriptions for management accountants often include strategic activities such as: providing information for strategic decisions formulating business strategies providing advice on how to improve business performance providing analysis of competitor
34、 performance liaising with functional managers to support the business planning process.A company selling wooden garden furniture in northern Europe is facing a number of problems: demand is seasonal it is sometimes difficult to forecast demand as it varies with the weather more is sold in hot summe
35、rs than when it is cooler or wetterchapter 1KAPLAN PUBLISHING 5Test your understanding 1Illustration 1 Defining strategic management accountingAs a result the company finds itself with high inventory levels of some items of furniture which are not selling, and is unable to meet demand for others. A
36、decision is needed on the future strategic direction and possible options which have been identified are to:How could strategic management accounting help with the decision making? the market is becoming more fashionconscious with shorter product life cycles there is a growth in the use of nontradit
37、ional materials such as plastics. use largely temporary staff to manufacture products on a seasonal basis in response to fluctuations in demand however it has been identified that this could result in quality problems automate production to enable seasonal production with minimum labourrelated probl
38、ems concentrate on producing premium products which are smaller volume but highpriced and less dependent on fashion.The role of corporate planningThe term corporate planning refers to the formal process which facilitates the strategic planning framework described above.The description of the role of
39、 a corporate planning department of a hospital might read:The corporate planning department supports senior management in making decisions to ensure corporate objectives are met. Its main roles are: to manage the business planning process through which the objectives of individual clinical departmen
40、ts and support services are agreed to compile and publish the annual plan for the hospital to monitor performance against the targets set in the business planning process to monitor performance compared with other similar organisations to undertake specific strategic projects.Introduction to strateg
41、ic management accounting6 KAPLAN PUBLISHINGIllustration 2 The role of corporate planningClarifying corporate objectivesThe strategic analysis stage will generate a range of objectives, typically relating to:These need to be clarified in two respects: maximisation of shareholder wealth (usually via m
42、aximising profit) maximisation of sales (whilst earning an acceptable level of profit) growth (in sales, asset value, number of employees etc.) survival research and development leadership quality of service contented workforce respect for the environment. conflicts need to be resolved, e.g. profit
43、versus environmental concerns to facilitate implementation and control, objectives need to be translated into SMART (specific, measurable, achievable, relevant and time bound) targets.Shareholder wealth Resolving conflict is often portrayed as a simple prioritisation shareholder wealth creation shou
44、ld be the main objective. However, in practice, firms often view other objectives (e.g. employee welfare) as constraints within which the firm tries to generate shareholder value.A statement such as maximise profits would be of little use in corporate planning terms. The following would be far more
45、helpful: achieve a growth in EPS of 5% pa over the coming tenyear period obtain a turnover of $10 million within six years launch at least two new products per year.chapter 1KAPLAN PUBLISHING 7Illustration 3 Clarifying corporate objectivesIllustration 4 Clarifying corporate objectivesGap analysisGap
46、 analysis is useful for showing how (whether) strategies will enable the firm to meet targets for key objectives (or at least those that can be easily quantified).For example, closing a profit gap:In the diagram showing the gap:T = targetF0 = initial forecast F1 = forecast adjusted for improvements
47、in internal efficiency F2 = forecast adjusted for productmarket expansion. Analysis of the gap reveals that in this instance the objectives cannot be achieved beyond Year 4 without diversification. This gap is significant if the lead time for diversifying exceeds 4 years.The existence of the gap may
48、 or may not lead to the revision of objectives. (There are after all two ways of closing a gap revising objectives or taking action to improve performance expectations.)Introduction to strategic management accounting8 KAPLAN PUBLISHINGExpandable textMaking strategic decisionsStrategic options can be
49、 evaluated using the suitability, feasibility, acceptability framework.The strategic management accountant will contribute to the acceptability and feasibility aspects in particular: Suitability whether the options are adequate responses to the firms assessment of its strategic position. Acceptability considers whether the opt
