This project has focused to achieve three objectives which are mentioned at objectives part. Findings of these objectives have described on three different chapters respectively. Directors of Jessop ltd wants to know how a management accountant can contribute on Jessop’s continuous growth. I find on my study strategic management is very likely forward looking not like traditional cost accounting. Strategic management accounting is considering external factors like competitors and management accounting contributes not only strategy developing also critically evaluates the current strategy of any organisation. In addition, management accountant can assist to control costs by implementing activity based costing methods, offer competitive pricing, budgeting process etc. Also, by applying benchmarking process, management accountant can discover strengths and weakness of Jessop ltd and way to overcome these weaknesses and keep their steady growth by exploiting all strengths. In the second chapter of this study has described various types of relevant and irrelevant cost as well as tells which costs should management of Jessop be included on total cost calculation and why should not consider. Overall impacts of relevant and irrelevant costs (revenue) on decision making has depicted on that chapter in brief form. Focal point of final chapter is on how Jessop will be beneficiary by successful implementation of activity based costing (ABC) and various problems of execution of ABC which may offset all those benefits. Concluded in concise small or medium sized organisation should use ABC or not. Chapter one
Jessop Ltd is a medium size advertising and public relation which is rapidly growing. It is running by four directors who are well known marketing expert in the industry. Now all directors are thinking to implement new management accounting department. Jessop commissioned me to do analysis how management accountant can help to keep steady growth. So, this study is focused to finding benefits of strategic management accountant and to full fill the requirement of course module APC 309 (strategic Management Accounting) 1.1 Objectives
* Role of management accountant in context of Jessop ltd
* Relevant/irrelevant cost or revenue for decision making process * Advantages and disadvantages of activity based cost in context of Jessop ltd 1.2 Methodology
This study is limited to only Jessop Ltd due to nature of study. This study has utilised only secondary information. Online and management accounting books have used as sources of information. Chapter two
2.0 Strategy and strategic management
Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations (Johnson & Scholes, 2009). In simple term, strategy is long term plan which market the organisation wants to get in future, how will compete competitors by using own resources like skills, finance, technical facilities in rapid changing external environment. There are three levels strategy known as corporate strategy (in long run what the organisation will do to fulfil stakeholders expectation) Business strategy (how business will compete others) and operational strategy (focuses resources, process & people). According to Lamb and Boyden (1984) Strategic management is a continuous process associated to assessing and controlling the business and the industries in which the company is running; assesses its competitors and sets goals and strategies to meet all active and potential competitors; and then reassesses each strategy on regularly to determine how it has been executed and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a...