Advanced Management Accounting Assignment Example | Topics and Well Written Essays - 1750 words

Advanced Management Accounting - Assignment Example Company has various hierarchy levels and compensation to each has been linked with the financial performance only. I have been assigned with the task to suggest some comprehensive measurement technique to the firm. This report, herein, provides complete analysis of alternative available to the firm. Also this report has provided in-depth analysis of Balance Score Card being as among widely used techniques and its prospective suitability to the firm. Performance measurements techniques are used to evaluate the position of any company on the road that leads to the destination it has defined in vision. These performance measurement techniques vary from industry to industry and include both financial and non-financial measures. Every performance measure is required to meet the following aspects to be eligible for the application (Price Waterhouse Coopers, 2006): There is large number of performance measures available and making choice regarding as the key performance indicator (KPI) is the critical decision. PWC developed model for the comprehensive Communication of KPI which is as follows: Measures that already are part of Allulite Windows and Joinery shall be aligned and hence, updated as required for meeting the standards set in model above. For instance, the production performance measurement can be upgraded to meet the quality, delivery, service and total cost. Furthermore, quality measurement shall be assigned some rating criteria with benchmark of acceptance, rejection or customer feedback etc. Moreover, analysis of various cost components, their percentage contribution in total cost overall positive and negative impact of variability in cost components etc. On the external front, comparison from industry benchmark; declaration of positive or negative position against mentioned benchmark; customer retention; company