By Peter Atrill, Eddie McLaney
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Extra info for Management Accounting for Decision Makers, 6th Edition
Phase 4 During the 1990s and 2000s advances in manufacturing technology and in information technology, such as the World Wide Web, continued unabated. QXD 5/29/09 3:29 PM Page 23 WHAT INFORMATION DO MANAGERS NEED? increased the level of competition which, in turn, led to a further shift in emphasis. Increased competition provoked a concern for the more effective use of resources, with particular emphasis on creating value for shareholders by understanding customer needs (see reference 2 at the end of the chapter).
It can also generate financial plans that set out the likely outcomes from adopting particular strategies. Managers can then use these financial plans to evaluate each strategy and use this as a basis for deciding between the various strategies on offer. l Performance evaluation and control. Management accounting information can help in reviewing the performance of the business against agreed criteria. We shall see below that non-financial indicators are increasingly used to evaluate performance, along with financial indicators.
7 Cleaning up for the shareholders Reckitt Benckiser Group plc makes a number of cleaning and household products including Vanish, Dettol, Air Wick and Nurofen. In its 2007 annual report the business stated its primary objective as follows: Reckitt Benckiser’s vision is to deliver better consumer solutions in household cleaning and health and personal care for the ultimate purpose of creating shareholder value. Source: Reckitt and Benckiser Group plc Annual Report 2007. Within a market economy there are strong competitive forces at work to ensure that failure to enhance shareholder wealth will not be tolerated for long.
Management Accounting for Decision Makers, 6th Edition by Peter Atrill, Eddie McLaney