Month: February 2021

INTRODUCTION TO SAMPLING METHODS A large amount of statistics is concerned with the use of samples. Before we look closely at this important area, we must be certain of what we mean by certain terms. Some Definitions A sample is Read More …

ESTIMATING PROBABILITIES Introduction Suppose someone tells you “there is a 50-50 chance that we will be able to deliver your order on Friday”. This statement means something intuitively, even though when Friday arrives there are only two outcomes. Either the Read More …

INTRODUCTION TO STATISTICS What do we mean by “Statistics”? “Statistics” is a word which is used in a variety of ways and with a variety of meanings, but, in whatever way it is used, it is always concerned with numerical Read More …

BUSINESS PROCESS RE-ENGINEERING Read this section to understand what business process re-engineering is. Also think about how business process re-engineering affects systems development and its influence on organisational performance (see the Case study). Business process re-engineering involves focusing attention inwards Read More …

BENCHMARKING BENEFITS AND DIFFICULTIES Traditionally, control involves the comparison of actual results with an internal standard or target. The practice of setting targets using external information is known as benchmarking. The value of external data to management accounting systems is Read More …

INFORMATION NEEDS OF MANUFACTURING AND SERVICE BUSINESSES Information needs of manufacturing businesses All manufacturing businesses follow a simple model. The information required by even modern manufacturing organisations is still based on the demands of this model. A variety of performance Read More …

DISADVANTAGES OF FINANCIAL PERFORMANCE INDICATORS Concentration on financial indicators means that important goals and factors may be ignored. Concentration on too few variables If performance measurement systems focus entirely on those items which can be expressed in monetary terms, managers Read More …

THE PRIVATE SECTOR: SHAREHOLDER BENEFITS The overriding purpose of a business is to increase long-term owner wealth. Carefully read the case study below.   Case Study The statement of prospects below is adapted from the published accounts of a UK Read More …

THE BALANCED SCORECARD The balanced scorecard approach to performance measurement focuses on four different perspectives and uses financial and non-financial indicators. Knowledge brought forward from earlier studies The balanced scorecard approach emphasises the need to provide management with a set Read More …

EXAM GUIDE The use of decision-making techniques to enhance performance is a core area of the syllabus. This chapter explains three models that could well be tested as a part of a longer question. You could also be asked to Read More …