Bristol Business School
Academic Year: 09/10
Assessment Period: August
Assessment Type: Referral Coursework
Module Leader:
Module Number:
Module Name:
Word Limit:
Svetlana Zverovich (UWE), Cheryll Lim Tsu-May
(Taylors)
UMAC3J-20-3
Advanced Management Accounting
2,500
Coursework Submission Date and Time:
Assignments are to be submitted by 2pm Monday 16 August 2010 at the
Programmes Office. Please be aware that there is NO 24hr or 10 day
window this year.
Deadline:
Monday 16 August 2010
14:00
Assignment Weighting
The assignment has a weighting of 30%
Assignment Objectives
The assignment assesses your ability to:
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Access a wide range of information concerning key management
accounting developments
Research the context of contemporary management accounting
theory and its recent historical development
Critically evaluate the literature concerning the developments in a
particular area of management accounting
Synthesise different views on a particular theory of management
accounting
Assess the practical impact of developments in management
accounting theory
Present written information in report format in a structured,
succinct and clear fashion
There have been major developments within the last twenty years in
both financial and non-financial performance indicator models for
target setting and performance appraisal.
These developments occurred as a result of criticisms of traditional
accounting measures by Johnson and Kaplan in their book, “Relevance
Lost: The Rise and Fall of Management Accounting" (1991). In this
book, they criticise “managing by the numbers” which they see as a
consequence of (over) emphasis on financial performance measures,
especially return on investment. They criticise the over reliance on
these short-term financial performance measures and call for
increased emphasis on improved financial measures and non-financial
measures.
The lectures in the first semester outline the main criticisms of Johnson
and Kaplan and give some ideas of the developments in both financial
and non-financial performance indicator models.
However, for a more detailed understanding of the criticisms you may
need to read one of the following:
Activity Based Costing
Johnson, H.T. and R.S. Kaplan (1991), “Relevance Lost: The Rise and
Fall of Management Accounting,” Harvard Business School Press.
ISBN 0-87584-254-2.
Chapter 11 outlines their main criticisms of the Return on Investment
performance measure.
Ezzamel M, et. al. (1990), “Managing it all by numbers: A review of
Johnson and Kaplan’s ‘Relevance Lost’”, Accounting and Business
Research, Vol. 20, No. 78, pp 153-166.
Again this article critically reviews Johnson and Kaplan’s criticisms in
‘Relevance Lost’.
Kaplan, R.S. and D.P. Norton (1992) “The Balanced Scorecard:
Measures that Drive Performance”, Harvard Business Review, Jan-Feb.
Vol. 70, Iss. 1 pp.71-80.
This article introduces the Balanced Scorecard.
Required:
1. Identify subsequent important academic publications that identify
the development of new financial and non-financial performance
measurement models from the 1990s to the present day. Critically
evaluate how they explain, expand, or critique the theory developed
by Johnson and Kaplan. The work of Stern-Stewart on Economic
Value Added and Kaplan/Norton on the balanced scorecard provide
good examples and are obvious starting points. Some seminal
articles are provided for you in the learning materials, however,
higher marks will be awarded to students who research relevant upto date articles and are able to critically evaluate and synthesise
these articles. This is the main body of the assignment and should
show that you have researched a number of academic articles that
trace the developments up to the present day. Higher marks will be
gained for critically evaluating and synthesising the literature,
rather than merely describing each article in turn.
2. Assess the impact of the new ideas on both companies and
consultants. This can be done by finding specific case studies or
academic surveys that have been undertaken on a number of
companies.
3. Conclude by summarising the literature and considering the extent
to which the subsequent developments have overcome the original
criticisms of Johnson and Kaplan.
Hints as to what you should be finding when you research up to date
articles.
Financial and Non-financial Performance Indicators
Residual Income and Economic Value Added were introduced as
alternative financial performance indicator models to Return on
Investment. The Balanced Scorecard was introduced as a performance
measurement model that included operational as well as financial
performance measures. It is now regarded as an important strategic
management tool that drives the changing strategy of an organisation.
Other non-financial performance measurement models were later
developed that were said to overcome some of the disadvantages of
the Balanced Scorecard. These included Results and Determinants
Framework, Performance Pyramid, Six Sigma, to name just a few. You
need to compare and contrast these different models.
The report should not exceed 2,500 words (excluding appendices). It
must be word- processed. The report must include an accurate word
count.
DUE DATE
The completed assignment should be inserted into the appropriate
assignment post box in the Business School by 2pm on Monday 16th
August 2010.
A completed Bristol Business School “Assignment Front Sheet” should
be attached securely to the front of the assignment before submission.
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Harvard system of referencing is required.
The marks awarded for the assignment will be based on the
assessment criteria described below which is listed in order of
importance.
Assignment for Advanced Management Accounting 2009/10, Feedback to students
Student Number:
Would students please note that achievement of the learning outcomes for this
assessment is demonstrated against the assessment criteria shown below in order of
significance. Your assignment is marked as a whole and your grade is more than a
summation of your performance as rated below. Please keep this sheet in a safe
place.
Assessment Criteria
1.
Evidence of substantial research into subsequent
publications with important publications identified
A
B
C
D
E
F
2.
Literature is critically evaluated and synthesised
A
B
C
D
E
F
3.
Conclusion synthesises critical evaluation of the literature
and practical developments
A
B
C
D
E
F
4.
Evidence of research into the impact on non-academic users
with use of relevant case studies
A
B
C
D
E
F
5.
Conclusion provides a balanced reflection on how far the
developments have overcome the original criticisms.
A
B
C
D
E
F
6.
Evidence of an understanding of the criticisms put forward
by Johnson and Kaplan.
A
B
C
D
E
F
*Rating scale: How far have you met the assessment criteria – A. Fully; (70%+); B.
Substantially (60-69%); C. Adequately (50-59%); D. To a limited extent (40-49%); E.
Inadequately (35-39%): F. Not at all (34% or less)
Feedback From:
Date:
Strengths and ways to improve this assignment are:
Help with your academic work is available at the BBS on-line study
skills site at www.uwe.ac.uk/bbs/studyskills