Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Q1. Explain the differences between cost-effectiveness and performance management. Which performance elements are essential for assessing financial soundness of a nonprofit?Although sound financial performance is clearly critical for an organization to flourish, cutting costs is not synonymous with performance management itself. An organization can be maximizing its cost effectiveness but not necessarily its performance. Performance management sets specific goals for employees. Goals must be measurable to be clear and effective but not necessarily tangible in nature. “Performance management is a whole work system that begins when a job is defined as needed” (Heathfield, 2018, par.3). It starts with the hiring process, beginning with an effective job description of each employment position. Each employment position should be linked to specific organizational needs. This is followed up by training and monitoring that evaluates the candidate’s performance over time based on those needs. Presumably the performance markers are also linked to financial solvency (for example, in the case of a nonprofit, soliciting a certain amount of donations from givers through effective marketing campaigns with strong ROI) but again solvency is not the sole objective.
Financial soundness of a nonprofit is assessed slightly differently than a for-profit organization. Nonprofits are not beholden...
It is important to remember that being a nonprofit does not mean the organization has a lack of concern for financial data. “Nonprofit is a tax status, not a way of operating: Positive operating results (unrestricted revenue consistently exceeding expenses) are an indicator of strong financial management” (Kramer, 2013, par.6). The ways of tracking financial success may be slightly different for the institution—for example, versus, “overly focusing on the ratio of earned to contributed revenue” reliability and a steady revenue stream may be a better indicator, indicating that the organization consistently has enough funds to support its activity (Kramer, 2013, par. 5). But that does not mean ignoring revenue needs entirely.
Q2. How do the board and audit committee utilize activity-based cost reduction information in governance?
Without activity-based cost reduction approaches, a firm is able to lack a “clear view of what drives costs…and profitability of business units transparent across the enterprise” (“Using ABC,” 2018, par.1). In contrast to other methods, activity-based costing, “focuses on activities not responsibilities. It depersonalises the cost review and enables management to value the activities undertaken in relation to the level…
Accounting Costs - SunAir Boat Case The following table shows details of SunAir Boat Builder's molding department's direct cost and overhead variances: SunAir Boat Builders, Inc. Detailed Cost Comparison (per boat hull) Unit Cost per Unit Cost Actual Price Usage Amount Standard Actual Variance Quantity Variance Materials Glass Cloth (sq. ft.) 120 $ Glass Mix (lbs.) 40 $ Unit Cost per Unit Cost Actual Rate Efficiency Amount Standard Actual Variance Quantity Variance Direct Labor Mixing (hrs.)
performance management that primarily involves investigating variances. Variances may take place because of several reasons such as climate changes that contribute to increase in electrical bills or slower of faster work by some employees. Nonetheless, only some of these factors or reasons are significant and may require management attention. Due to these unpredictable random factors or reasons, it's expected that nearly every category of cost will result in a
(NCPP 2004) II. Performance Management in England and Wales: In Wales and England the National Policing Plan 2004-2007 was published in November 2003 with the stated aim of the plan being to: "Deliver policing to high national standards and for communities to be increasing engaged in the policing of their area." The stated plan is inclusive of a "framework for local police planning in England and Wales over the next three
BSC Analysis BAE Balanced Scorecard Performance Management Implementation Facing the daunting challenge of staying competitive in rapidly consolidating industry segments of aerospace, defense and commercial aircraft components and assembly manufacturing and service, senior management at BAE Systems chose to completely re-architect the company. The comprehensive change programme included dismantling the global conglomerate and replacing its structure with a series of interlocking businesses that would strengthen and support each other, generating greater competitive
Managerial Accounting Cost-volume-profit analysis is a tool used in managerial accounting that helps companies to determine the level of production (and sales) required by the company to break even. In CVP analysis, costs are separated into fixed and variable costs. The assumption is that the fixed costs do not change, while the variable costs do change with the level of production. Once sales are taken into account, so are variable costs,
Programme: Professional Diploma Management ACCOUNTABILITY AND FINANCIAL ANALYSIS For a very long time now since the past up until the present moment, budgets had had a key and integral role to play in accounting and also management control. Budgeting is an aspect or notion that is by now ingrained and deep-rooted in the viewpoint of business (DeWaal, 2005; Becker, Messner and Schaffer, 2009). The following paper will seek to show what budgeting