Management Accounting Tools – An Imperative to Promote Organizational Vision and Strategy

Abstract

Every company aspires to grow and the growth could be either organic or inorganic. Whichever route a company takes, it follows a growth strategy. C-Level executives who strategize and steer the company towards the organization’s goals should ensure that they take along everybody in the organization’s growth story. And what better tool than a ‘Balanced Score Card’ to achieve this!

In addition to this strategic planning tool, where organizations are combined with another management accounting tool - ‘Activity Based Costing’ in their arsenal, the various stakeholders in an organization are expected to benefit immensely from it.

The purpose of this Article is to provide a succinct overview on these two management accounting tools namely ‘Balanced Score Card’ and ‘Activity based Costing’ and its interplay in promoting an organization’s vision and strategy.