Performance Management Essay

Overview Welcome to Module 1. If you baffle not already through so, read the Program Manual located in the Reference corporeal division of the CMA Canada master Programs website. It generates you with important introductory information about the program. In Module 1 of the program, candidates are exposed to many functional competencies from the CMA aptitude Map that involve decision making regarding performance management, performance measurement, happen management and governance, and financial reporting. For assistance when doing their assignments in these areas, candidates are expected to befool on many of their intermediate and advanced management and financial invoice concepts they learned in their university courses and/or in the Accelerated Program.For instance, in this assignment, atomic number 53 of the concepts involves Cost-Volume-Profit (CVP) epitome. In these types of analysis, candidates may be asked to look at how profits and cost miscellanea with a change in volume, or a change in such factors as vari suitable costs, fixed costs, selling prices, and change integrity of overlaps sold. By studying the relationships of costs, sales and net income, management is better able to cope with many planning decisions. Candidates who have difficulty doing this assignment or future assignments regarding CVP are encouraged to review Chapters 11 and 12 from the Horngren et al. ask reading mentioned below. As candidates gain more work experience, they will be exposed to a number of organizational concerns in the topic areas outline above.For instance, candidates may be asked to provide analysis on such items as 1. Preparing reports on a product or geographic segment to make up ones mind where the organization generates notes and profits 2. Evaluating strategic alternatives in ones organization using cost-benefit and scenario/ aesthesia analysis 3. Determining the effectiveness of be systems for their letness for an organization 2012 The Soc iety of Management Accountants of Canada. All rights reserved. / Registered Trade-Marks/Trade-Marks are own by The Society of Management Accountants of Canada. No part of this document may be reproduced in any form without the permission of the copyright holder.4. Introducing the important concepts of strategy to facilitate an understanding of the big picture 5. Constructing and analyzing a cash flow averment to determine cash needs 6. Looking at different short-term investment strategies as a means to efficaciously utilize excess cash 7. Examining the effectiveness of internal control systems at heart an organization 8. typographying results using GAAP or a let on basis of accounting and 9. Analyzing a companys divers(a) product lines. Management accountants are often called upon to provide the analysis required for price decisions, such as cost-volume-profit, product costing, expected value, break even, contribution margin, and sensitivity analyses. Proper and accurate ana lysis is critical if management is to make thinking(a) decisions. Using the Right Financial outline Tool Candidates will oft epochs find themselves constrained by space (word/page limits) and/or while when doing their assignments.A critical outcome of analyzing cases is learning to use financial analysis dents under the usurp circumstances. Selecting the right tool has the effect of demonstrating both unassailable judgement (in terms of the candidates ability to select an appropriate tool) and condensedness (in recording the information in a professional manner without burdening the subscriber with non-important information). Below are some examples that help to demonstrate how selecting the right tool for the right circumstance is critical to complete assignments in a ready(a) and efficient manner. While the examples demonstrate the use of one tool, note that former(a) tools may be just as effective. Given two scenarios and asked to provide an analysis between them, cand idates could analyze them by forecasting the full income statement for both.While this is a valid progress, it takes a significant amount of time and requires the use of valuable report space that could be better employ with the selection of a different tool. It may be more appropriate under these circumstances to disclose simply those relevant revenues and costs and equivalence those. For a more in-depth discussion of the differences between the two approaches, see pages 422-423 in Chapter 11 of Cost Accounting A Managerial Emphasis (Required Readings listed below). Specifically, disclose 11-2 on page 423 demonstrates the visual difference between the two approaches. a great deal contribution margin calculations can be used to drastically smother both the time it takes to analyze a problem and the space required to show the analysis. This type of analysis may apply to analyze psyche products, divisions or customer groups. This tool can allow one to present the analysis inf ormation in a much more concise way.Discounting is another tool that can be used to analyze various scenarios. Again, one could prepare a financial forecast for both scenarios and send packing those accordingly. However, a more efficient method would be to select only the relevant revenues and/or costs for preparation and discounting. This tool is particularly efficacious when looking at scenarios that create different multi-year impacts or that need to be evaluated over a period of time. Candidates are encouraged to review Chapters 11 and 12 in Horngren et al. (Required Readings listed below) for more examples on tool selection. Learning to identify the relevant information can drastically reduce both the time spent on the analysis and the space required to report it. In this assignment, candidates are specifically directed to do only certain go of the Steps for Approaching agate line and Corporate Strategy.This case-solving approach was first introduced to candidates at the Or ientation Session. As mentioned at the Orientation, these steps provide candidates with a opinionated approach for addressing a case involving business-level and corporate-level strategic issues. The first three modules (Development Phase) of the CMA Canada captain Programs prepare candidates for the Case Examination and focus on the business-level strategic issues.Applying this approach effectively is one of the important competencies that candidates will learn in the Professional Programs. Reference Documents To assist candidates with case analysis, a series of reference documents have been created and can be found in the Reference Material section of the Professional Programs website. The most important documents include 1. 2. 3. 4. Steps for Approaching Business and Corporate Strategy General Assessment Guide Business Report Guidelines Format SpecificationsThere are other documents such as Situational Analysis Tools, Developing an Implementation Plan and Pro Forma Financial St atements. Candidates should find these documents in truth useful throughout the program. Learning Outcomes By the end of the assignment, candidates will be able to recommend strategies and tactics to a company that is in a downturn scenario. Due Date Please refer to the Schedule accessed from the left over(p) navigation menu.