Comment on and critically evaluate this statement - "Irrespective of the size and type of organisation, it is essential that strong interrelationships exist between organisational strategy, long term plans and annual budgets if the organisation is to be successful".
1. Critically evaluate a range of key strategic management accounting models and concepts.
2. Critically understand of specific analytical skills in key areas within management accounting at local and international level
Comment on and critically evaluate this statement - "Irrespective of the size and type of organization, it is essential that strong interrelationships exist between organizational strategy, long term plans and annual budgets if the organization is to be successful".
Organizational Strategy is related to visualize a future for the business and involves creating value in the perception of your customers and building s strong competitive position in the market. Typically, long term plans extend beyond five years. The plan entails the long term objectives of the company, the time span in which these plans will be achieved, the resources that will be required to achieve the objectives, the responsibilities of the persons for implementing the long term plan and most importantly the budget for implementing the plan. The annual budget refers to the list of planned expenses and revenues for the year. A part of the allocation of the budget must be for the implementation for the long term plan. If the planned budgetary allocation is not received from the annual budget the long term plan cannot be implemented. Similarly, if the required ...
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