Page 7 - MCS August Day 2 Tasks
P. 7
Chapter 8
ADVANCED MANAGEMENT
ACCOUNTING (P2) PRACTICE TASKS
TASK 1 – BALANCED SCORECARD
Trigger and task
The Finance Director, Endo Karsa, has contacted your department with a request and the Senior
Financial Manager has forwarded it to you, asking you to produce the information requested:
To: Senior Financial Manager
From: Endo Karsa
Date: Today
Subject: Balanced scorecard
Hi,
After a discussion with Takeo Ito in production, I believe that we need to set up a performance
evaluation system for the production department that tracks performance with a focus on quality.
So far Takeo has been very successful in cutting costs without compromising quality but with
further cost cutting likely to come, I feel that we need to pay a little more attention to the quality
levels in the department.
My preference is to use a balanced scorecard approach as I’ve seen it work very well before in my
previous roles.
Could you put together the following for me?
‐ How the balanced scorecard should use critical success factors and key performance indicators.
‐ How it should use objectives that are SMART (specific, measurable, achievable, relevant and
with a timescale), with an example of a SMART objective for each perspective that helps ensure a
focus on quality!
Endo
Prepare the work that Endo has requested. (Time 45 minutes)
KAPLAN PUBLISHING 23
