Managerial Accounting Engineering Asset Management - Sample

Question: Describe about the Managerial Accounting for Engineering asset Management. Answer: 1. Summarizing the process, that Deb Young used to develop a balanced scorecard for GPI Business Director Deb Young mainly projected process whereby he was of the opinion for fundraising activities. Necessary funding helps in operations as well as for becoming successful in the upcoming financial year of GPI (Eldenburg, 2011). Deb Young uses balanced scorecard for carrying out business operations in certain way. It is one of the mechanism for communicating goals as well as objectives in providing diagnostic information in case of agency operations as far as possible. 2. Identifying advantages and disadvantages of balanced scorecard at GPI Advantages of balanced scorecard at GPI Great Persons, Inc. (GPI) uses balanced scorecard in presenting organizational goals into single page chart broken in specified areas of operation. Great Persons, Inc. (GPI) uses balanced scorecard that allows companies in bridging gap between mission statement as well as overarching goals for daily operational activities. The main goal is to please customer for improving in the technical support performance in increased Service Level Agreement. Great Persons, Inc. (GPI) raises innovation as well as process improvement methods like six sigma and lean manufacturing in attainment of corporate goal. Disadvantages of balanced scorecard at GPI Great Persons, Inc. (GPI) uses balanced scorecard approach that is subjective in nature. It cannot be quantified in case of surveys as well as management opinion. Great Persons, Inc. (GPI) uses balanced scorecard approach that is overly abstract in nature. Company fails in meeting balanced scorecard goals for interpretation of current state of affairs. 3. Developing proposed balanced scorecard in presenting Board of Directors at next meeting Balanced Scorecard is one of the strategies planning as well as management system used in extensive form in Great Persons, Inc. (GPI). Figure: Balanced Scorecard of Great Persons, Inc. (GPI) (Source: Epstein Lee, 2011) Learning and Growth Perspective Great Persons, Inc. (GPI) uses learning and growth perspective includes employee training as well as corporate culture attitudes. It relates to individual as well as corporate self-improvement for future analysis purpose (Bhattacharyya, 2011). Business Process Perspective Great Persons, Inc. (GPI) uses business process perspective in internal business activities that allows managers for confirming customer requirements. Customer Perspective Great Persons, Inc. (GPI) uses customer perspective for increased realization of customer satisfaction at the particular business organization. Great Persons, Inc. (GPI) provides visual means for demonstration of certain goals. It helps in increased improvement of sales under financial section. It aims at improving customer service. Financial Perspective Great Persons, Inc. (GPI) uses financial perspective takes financial data for upcoming financial year. Great Persons, Inc. (GPI) uses balanced scorecard approach that fails in including direct financial analysis of economic value or risk management activities. 4. Strategy Map for setting CSF included in balanced scorecard Figure: Strategy Map for setting CSF included in balanced scorecard (Source: Lee, 2014) Great Persons, Inc. (GPI) generates perspectives as well as critical success factors in generating ideas as far as possible. The Committee decides in generating innovative ideas for balanced scorecard critical success factors with the help of nominal group techniques. This will help in rendering viable information as well as future strategic decision-making process at the same time (Atkinson, 2012). This will result in conducting quality service improvement for measuring and recognizing importance of adequate funding in the most appropriate way. Reference List Atkinson, A. (2012).Management accounting. Upper Saddle River, N.J.: Prentice Hall. Bhattacharyya, D. (2011).Management accounting. Noida, India: Pearson. Eldenburg, L. (2011).Management accounting. Milton, Qld.: John Wiley Sons. Epstein, M. Lee, J. (2011).Advances in management accounting. Bingley, UK: Emerald. Lee, J. (2014).Engineering asset management 2011. London: Springer.