China Resource Corporation

Question 1. Strategic Management Accounting Practices

The strategic management accounting practices at China Resource Corporation are important in improving the accountability and evaluating the transactions in the organization. The key strategic management accounting practices at the company include activity-based costing approach, benchmarking, performance management systems, and profit center coding. The company has been focused on promoting efficiency and management as well as control of resources. The implementation of strategic management accounting programs is critical in improving the design of profit center management.

Activity-based costing approach will also be useful in understanding and measuring the performance of the company. Thus, this approach is usually strategic in nature in trying to improve the company’s efforts to achieve competitive advantage (Lane, 2007). Furthermore, ABC’s strategic target comprises of the management of activities through the definition of proper actions to enhance its competitiveness. Profit center programs and the design of a proper profit center are also critical in improving the overall business strategy process.

Initially, the company relied on the performance management system that had been implemented by a cross functional team in an effort to manage its accounting programs. Currently, the company has a comprehensive profit center coding, and it performs the evaluation of accounting units quite effectively. Furthermore, the coding of profit center will presuppose engaging senior management teams to avoid the proliferation of such centers. For example, the company focuses on consumer-related business units to expand their operations and success.

Benchmarking is also critical in the identification of the best practices and comparing the performance of the organization to other programs. A common form of benchmarking, used by the company to determine its strategic management performance, is the assessment of external orientation towards its competitors. Other strategic management practices implemented by the company include costing technique and the effective measurement of important networks. These practices also involve the assessment of decision-influencing programs that improves the overall management of resources in the organization. Therefore, these techniques of strategic management accounting methods are effective and efficient in improving long-term productivity.

Word count: 331

Question 2. Strategic Nature

Various identified management accounting practices are strategic in nature. They usually involve a comprehensive assessment of major strategic management processes. At the same time, the benchmarking process is also strategic in nature because it has significant long-term implications. The company will be able to review the required long-term measures in trying to improve its performance. Thus, the long-term strategy of China Resource Corporation will be implemented through the design of benchmarking programs and strategic designs.

The ABC technique can be used in setting clear long-term horizons of the future activities of the company. Such a move makes it possible to review the uncertain environmental aspect in the implementation of quality strategic decisions. The ABC model is keen on improving the design of long-term management reports and records. Competitor cost assessment would also help focus on assessing the uniqueness of competitors’ cost structures (Lane, 2007). The setting of long-term horizons of competitor cost reviews and projections is an important part of the process of cost evaluation and analysis. Such a process would ensure that the company has the capacity to finance its programs. The adoption of cost structures is based on a long-term horizon, which is relevant in supporting productivity in the organization.

China Resource Corporation relies on the useful design of long-term cost objectives. The expansion of cost objectives and metrics is effective for the improvement of the performance of ABC costing. Thus, performance management system is a strategic management accounting program with the aim of expanding its ABC objectives and goals. Moreover, it is necessary to review the processes associated with management accounting designs for proper HR management. Having long-term HR plans is an important process of improving management accounting processes and plans. Therefore, management accounting techniques are strategic in nature as they try to create and implement the company’s long-term goals and objectives.

Word count: 305

Question 3. Content Analysis

The content of strategic management accounting practices was detailed and comprehensive. One of the key aspects of these practices is management reporting that involves a complete strategy review of the company’s performance. The implementation of management accounts’ information is useful in improving the management of reporting system. The perspective of management level of financial performance is critical in enhancing the strategic evaluation of the company. The content includes the use of profit centers to improve the overall optimization of customer satisfaction, while the optimization of product organizational process among others is essential as well. Finally, the accountability of profit centers is critical, and it focuses on improving the company’s strategic assessment.

The company has detailed the change of internal information environment assets, which is also critical. The design of the balanced scorecard strategy is effective in improving the performance of accounting reports and findings. Furthermore, the market capitalization of profit units is essential in shaping the performance management system. The understanding of management accounting reports is reliable, and it seeks to enhance profit management teams according to the set standards. The content of planning and budgeting process aims to monitor and view the design of strategy implementation. The management has been able to connect the budgets through a proper strategy integration and implementation.

China Resource Corporation aims at improving the integration of management reporting process through a balanced scorecard tool. This tool is effective in building a clear brand to the management of financial information and data. These efforts serve to protect the long-term progress of the organization through requiring balanced performance measurement process. Further, detailed profit centers have been developed, and they focus on reviewing regular management reports and documents. The focus of brief reports was on the analysis of business operations for the various months. Therefore, the creation of performance criteria and proper management reports are important in improving the company’s financial success and productivity.

Word count: 317

Question 4. Process Analysis

The process review and analysis of strategic management accounting practices is critical for the improvement of the company’s productivity. At the same time, the process, which is involved in improving the company’s strategic management accounting programs, includes planning and budgeting, management reporting, internal audit, performance management, and manager appraisal. These steps of strategic management accounting practices are essential in improving the design of its accounting programs to enhance a proper accountability of the company’s financial reporting (Lane, 2007). Planning and budgeting usually involves the setting of clear objectives, which is useful in improving management accounting process.

China Resource Corporation has the capacity to improve its planning and budgeting program. The mentioned aspect will involve the review of value proposition such as customer relations and operational objectives. The analysis of budgetary items is useful in enhancing the proper assessment of budgeting actions. The aspect of management reporting seeks to determine the documentation of reports on required information. The reporting of documents and records is of great importance since such a move would help in shaping the management records and programs towards improving the latter.

An internal audit step is also conducted to ensure that accounting information and data is managed well. The internal audit program enables the company to improve the review of its accounting information and data. Performance management is also critical in understanding the proper assessment of management reports and records. Thus, it seeks to review the productivity of employees in regards to management accounting reports. The last step of the overall process involves manager appraisal, which usually presupposes reviewing the outcome of management accounting reports and records in the decision-making process in the organization. Consequently, the process implies the sequential implementation of above-mentioned steps in order to have a comprehensive strategic management accounting process at China Resource Corporation.

Word Count: 300

Question 5. Organization’s Strategic Management Accounting Practices and Ethics

There exist various ways, in which the organization’s strategic management accounting techniques might have a significant effect on ethics. Thus, the ethical behavior of managers and other stakeholders is important to determine the ethical responsibility and compliance of the strategic management practices of accounting. When managers do not act ethically, their behavior would bring questions regarding all strategic management accounting processes. Therefore, it is important to develop quality ethical guidelines for the improvement of management accounting practices.

The credibility of management accounting practices is another ethical concern for the company. Thus, credibility usually refers to the push to review the ability to communicate and transmit quality accounting information in a fair and objective way to various business stakeholders. If the management is unable to gather this information, it is impossible to determine the actual results of management outcomes and transactions. At the same time, withholding information is another serious ethical violation, associated with management accounting. Thus, management accountants are required to disclose all relevant financial data and information since managers make the strategic decisions based on the reports provided by accountants. Therefore, all personnel must disclose information without any withholding of financial information.

Finally, due diligence presents serious ethical concerns about management accounting practices. Employees and customers are expected to develop proper ethical guidelines and actions. The design of ethical frameworks and programs is effective in shaping the long-term productivity of the company (Lane, 2007). Therefore, it is critical to ensure that management accounting plans are designed through responsible efforts and programs. Furthermore, the management must be focused on the implementation of these programs and actions. Thus, the management of China Resource Corporation should develop clear ethical guidelines and action plans to deal with the ethical issues that might arise in the company. Consequently, the handling of ethical issues is essential for improving the design of effective management accounting reports.

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