Performance Management Essay Example for Free

Performance concern EssayOverview Welcome to Module 1. If you have not already done so, read the Program manual(a) located in the Reference Material section of the CMA Canada original Programs website. It provides you with important introductory study almost the program. In Module 1 of the program, candidates be exposed to many functional competencies from the CMA Competency Map that affect decision making regarding performance management, performance measurement, risk management and governance, and financial reporting. For assistance when doing their dates in these areas, candidates are expected to draw on many of their intermediate and advanced management and financial accounting concepts they lettered in their university courses and/or in the Accelerated Program. For instance, in this assignment, one of the concepts involves Cost-Volume-Profit (CVP) analysis. In these types of analysis, candidates may be asked to insure at how profits and costs transform with a cha nge in volume, or a change in such factors as vari qualified costs, fixed costs, selling prices, and mix of products sold. By studying the relationships of costs, gross 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. required reading mentioned below. As candidates gain more than work experience, they depart be exposed to a number of geological formational concerns in the topic areas outlined above.For instance, candidates may be asked to provide analysis on such items as 1. Preparing reports on a product or geographic segment to determine where the organization generates cash and profits 2. Evaluating strategical alternatives in ones organization using cost-benefit and scenario/sensitivity analysis 3. Determining the matteriveness of cost systems for their appropriateness for an organ ization 2012 The Society of management Accountants of Canada. All rights reserved. / Registered Trade-Marks/Trade-Marks are owned 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 main concepts of strategy to facilitate an understanding of the big picture 5. Constructing and analyzing a cash flow argumentation to determine cash needs 6. Looking at different short-term investment strategies as a means to effectively utilize excess cash 7. Examining the effectiveness of internal control systems within an organization 8. Reporting results using GAAP or a disclosed basis of accounting and 9. Analyzing a fellowships various 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 a nd accurate analysis is slender if management is to make well-informed decisions. Using the Right monetary Analysis Tool Candidates will oftentimes find themselves constrained by space (word/page limits) and/or time when doing their assignments.A critical outcome of analyzing cases is learning to use financial analysis tools under the appropriate circumstances. Selecting the right tool has the effect of demonstrating some(prenominal) good judgement (in terms of the candidates ability to select an appropriate tool) and concision (in presenting the information in a professional manner without burdening the reader with non-important information). Below are some examples that admirer to demonstrate how selecting the right tool for the right circumstance is critical to complete assignments in a affectionate and efficient manner. While the examples demonstrate the use of one tool, note that other tools may be hardly as effective. Given two scenarios and asked to provide an analysis between them, candidates could probe them by forecasting the wide-cut income statement for both.While this is a valid go on, it takes a significant amount of time and requires the use of of import report space that could be better use with the selection of a different tool. It may be more appropriate under these circumstances to identify only those relevant revenues and costs and compare those. For a more in-depth discussion of the differences between the two come ones, see pages 422-423 in Chapter 11 of Cost Accounting A Managerial Emphasis (Required Readings listed below). Specifically, Exhibit 11-2 on page 423 demonstrates the visual difference between the two approaches. much contribution margin calculations can be used to drastically reduce both the time it takes to try out a problem and the space required to show the analysis. This type of analysis may apply to analyze individual products, divisions or customer groups. This tool can allow one to present the analysis in formation 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 discount those accordingly. However, a more efficient method would be to select only the relevant revenues and/or costs for set and discounting. This tool is particularly useful 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 steps of the Steps for draw near Business and Corporate Strategy.This case-solving approach was first introduced to candidates at the Orientation Session. As mentioned at the Orientation, these steps provide candidates with a systematic approach for addressing a case involving business-level and corporate-level strategic issues. The first three modules (Development Phase) of the CMA Canada Professional Programs prepare candidates for the Case Examination and decoct 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 constitute 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 Specificationsthither are other documents such as Situational Analysis Tools, Developing an Implementation Plan and Pro Forma Financial Statement s. Candidates should find these documents very 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 enliven refer to the Schedule accessed from the left navigation menu.