UNIT 02: BUSINESS PERFORMANCE MEASUREMENT Unit Reference Number Unit Title Unit Level Guided Learning Hours (GLH) Number of Credits Mandatory / Optional SSAs Unit Grading Structure
R/507/1304 Business Performance Management 6 200 Hrs 20 Mandatory 15.1 Accounting and finance Pass
Unit Aims The aim of this unit is to develop learners’ understanding of performance management techniques. Learners will compare the systems used in profit making and non-profit making organisations. The learners will gain a working knowledge of performance measurement reporting and specialist cost and management accounting techniques. Learning Outcomes and Assessment Criteria
Learning Outcomes - The learner will: 1. Understand the principles of performance measurement.
2. Understand performance analysis in for profit and notforprofit organisations
3. Understand specialist cost and management accounting techniques.
4. Understand performance measurement reporting.
Assessment Criterion - The learner can: 1.1. Analyse the importance of performance measurement to organisations. 1.2. Explain the main functions of performance measurement systems. 1.3. Determine appropriate sources of information and data to carry out performance measurement. 1.4. Analyse external factors that impact on performance measurement 2.1. Outline the systems and processes involved in performance analysis in for-profit organisations. 2.2. 2.2 Outline the systems and processes involved in performance analysis in not-forprofit and the public sector. 2.3. Explain why divisional performance is measured in organisations. 3.1. Evaluate the usefulness of activity-based costing. 3.2. Assess how target costing and life-cycle costing are used by business organisations. 3.3. Evaluate the relationship between throughput and environmental accounting. 3.4. Explain the rationale for transfer pricing. 4.1. Explain why performance measurement is measured reported in organisations. 4.2. Evaluate the needs of different audiences when reporting performance.
Learning Outcome 1 Importance of performance measurement: allows comparison to standards that have been set to identify deviations; helps in identifying cost reductions; helps to align activities to strategic plans; identifies best practice; supports reduction of risk; provides accountability and incentives; allows benchmarking to outside organisations; past data can help future forecasting; can support borrowing requirements; management of cash flow and working capital.
London School of International Business | www.LSIB.co.uk
9
