Keywords: benchmarking, capital input, European, performance measures, productivity, strategic management accounting
Productivity and strategic management accounting
Productivity is defined and presented in both its performance measurement role and its strategic context for manufacturing and service sectors. The development of productivity, especially total productivity, and its connection with management accounting is highlighted. The inter-relationship of productivity analysis to competitive advantage and technology is also discussed. Strategic management accounting, incorporating productivity, is shown to focus on price recovery and profitability with alternative methods revealed. The approach for external estimations for competitive analysis, utilising benchmarking, is set out. Capital input within productivity measurement is studied, specifically examining inflation, technological change and capacity maintenance. Allied to total productivity, a methodology is put forward for capital input for strategic analysis.