Important Contemporary Development in Management Accounting: Balanced Scorecard

Because of globalization, the business environment has become increasingly competitive. Just following the traditionally management accounting systems will lead to low efficiency and loss of customer loyalty and satisfaction. So it is vital to develop some new management systems in order to solve this problem. The balanced scorecard is one of the new approaches in the contemporary development in management accounting. It provides a framework that translates the aims and objectives of the business into a series of key performance measures and targets. From using a balanced scorecard, each company can find out how its performance contributes to their goals.