Question
Which of the following statements is NOT true about Strategic Management Accounting: SMA is a reactive approach where only accountants perform much of the analysis. SMA includes monitoring progress towards strategic objectives. SMA uses a combination of lead and lag indicators to measure performance. SMA gives great emphasis on competitor analysis and customer profitability analysis.
Answer
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Orson
Professional · Tutor for 6 years
Answer
The incorrect statement is that "SMA is a reactive approach where only accountants perform much of the analysis." This is not true because SMA is not reactive but engages in the strategic planning process and isn't tied only to the accountants.
Explanation
## Step1: Understanding the premise we can consequentially evaluate and correct every statement made in the questionnaire.## Step2: Investigate the first assertion. Strategic Management Accounting (SMA) certainly isn’t restrained to being reactive or its contribution confined only to the accountants. It includes variables outside management accounting’s formal boundaries and integrates them with strategic decision-making inputs. It is corrective and strategic and usually requires collaboration among various departments.## Step3: Move on to the second assertion. The key task of SMA indeed resides in monitoring the business trajectory towards achieving strategic objectives for increased productivity, optimised procedures and maximal returns.## Step4: Investigate affirmation number three. Absolutely, SMA makes efficient use of lead and lag indicators to measure performance for future metrics forecast based on empirical data.## Step5: In conclusion, view point four. It suggests that SMA centres heavily on competitor analysis and customer profitability analysis, which determines factors to strategize better. This is incredibly critical toward market-centric data analysis as it supports strategic decision making at various stages.