Discuss how SCT could use strategic management accounting practices to help understand their costs and plan for the next three years..
Discuss how SCT could use strategic management accounting practices to help understand their costs and plan for the next three years.
Your discussion must be no more than 1,200 words, excluding academic references, tables and diagrams. You do not need to research Kotter and Schlesinger’s change approaches, as these should not be the focus of your discussion.
Question 2 (20%)
As detailed in the case scenario the Trust is considering the purchase of three new machines to reduce costs and improve patient care. Based on the following information, use your knowledge of project appraisal methods as well as any other factors that you must consider in order to make an effective decision regarding the new machines. State any assumptions you make.
SCT has hired a financial analyst to help them understand the cost savings better to justify the cost of machine to the central Government. The analyst charged a one-off fee of £5,000 and raised following points:
• The central Government will only approve the cost of machines if savings of £3 million are achieved.
• The machines will be depreciated over three years on a straight-line basis and will be returned to the charity at the end of three years to be sold for a scrap value of approximately £0.2 million per machine.
• SCT is determined to minimize redundancies. Therefore, staff vacancies in other departments must be explored. Currently, the following vacancies are available:
o There are currently 30 administrative vacancies in other departments across the Trust. The salary advertised for these posts is £24,000 per annum.
o There are currently 40 nursing vacancies unfilled in the Trust’s hospitals. The salary for these posts is £30,000 per annum. The nurses will need to undergo training once recruited. The training cost will be £400 per employee.
Write no more than 200 words.
Question 3 (10%)
At the start of the unit you were asked to consider how taking a unit in accounting and finance would help you become a better management professional. You will now revisit this question and reflect on it as you have completed the unit.
Explain how you now think accounting and finance knowledge and skills can help you personally become a better management professional. Connect reflections on your learning from the unit to your programme pathway.
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