The 2.4 syllabus is concerned largely with so called management accounting techniques but I'm not sure what's meant by this. Could somebody please list out the main ones so I have an idea of what this is? Thanks

Put simply management accounting techniques are the calculations that are covered in 2.4 which can be used to assess performance and aid decision making by management. Things like variance analysis, cost benefit analysis, NPV decisions, payback etc.

I didn't here such termnology in my whole studyship

In the 2,4 textbook on the first page of the 'Economic Environment' chapter 11, it says:

2.4 comprises two main elements:
i.The use of managament acc. techniques in business planning n control;
ii. financial management methods used to analyse sources of financial and capital investment possibilities.

Let us first develop understanding regarding Planning and Control Cycle.

Planning And Control Cycle:=

1)Identify Objectives
2)Identify Potiential Strategies
3)Evaluate Strategies
4)Choose Alternative Course Of Action
5)Implement The Long Term Plan
6)Measure Actual Performance And Compare It With Plan
7)Respond To Divergences(Deviation) From Plan

This can be remember by mnemonic of IIECIMR

I think below are given something described as management accounting techniques like Budgeting,Forecasting for planning purposes and performance measurement(which focuses on ensuring that the specific goals that have been set are acheived),Variances Reporting etc respectively.......................
In my next post i will be expected to describe you performance measurement Applications.....

Regards
Muhammad Amir

A little change in my previous post please read it from beggining

I think below are given something described as management accounting techniques like Budgeting,Forecasting for planning purposes and performance measurement(which focuses on ensuring that the specific goals that have been set are acheived),Variances Reporting etc for control puposes respectively.......................
In my next post i will be expected to describe you performance measurement Applications.....

"The Strategy is nothing more then a carefully devised plan of action designed to acheive goals"

And planning is the generic form of Budgeting and forecasting and subsequently Control is the generic from of performance measurement and Variances.

And i think budgeting, forecasting, variances are all well known so lets consider performance measurement in wider context................

"Performance management focus on ensuring that specific goals that have been set are acheived" or "Performance management aims to establish how something or somebody is doing in relation to planned activity"

APPICATIONS OF PERFORMANCE MEASUREMENT:-

PERFORMANCE MEASURES FOR MANUFACTURING BUSINESS:-
1)Performance measures of SALES
2)Performance measures of Matarial
3)Performance measures of Labour
4)Performance measures of Overheads


PERFORMANCE MEASURES FOR SERVICE INDUSTRY:-
1)Financial Performance
2)Competitive Performance
3)Quality of Services
4)Flexibility
5)Resource Utalisation
6)Innovation


PERFORMANCE MEASURES FOR NON-PROFIT MAKING ORGANISATIONS:-
(A VFM Value For Money)
Compomemts of which are
ECONOMY
EFFECTIVENESS
EFFICIENCY

so this is all about performance measurement i hope this will help you to obtain understanding

Regards
Muhammad Amir
aamir1_boy@yahoo.com

Thanks that in subsequent post you had fully mentioned your ask

Thanks that in subsequent post you had fully mentioned your ask

100% agreed

Lovely :-)

Absolutely lovely bit of revision for all of us here, thank you

I would emphasise the comments made by Blue. Variance Analysis, Cost Benefit Analysis, NPV, Budgeting, etc, are the techniques you are referring to. This involve extensive calculations, followed by comparison against industry benchmarks and discussion of any differences in the two.

The only way to understand the above is to practice questions.

Thank you