PRODUCTIVITY AND STRATEGIC MANAGEMENT ACCOUNTING

Productivity is defined and presented in both its performance measurem ent role and its strategic context for manufacturing and service secto rs. The development of productivity, especially total productivity, an d its connection with management accounting is highlighted. The inter- relationship of productivity analysis to competitive advantage and tec hnology is also discussed. Strategic management accounting, incorporat ing productivity, is shown to focus on price recovery and profitabilit y with alternative methods revealed. The approach for external estimat ions for competitive analysis, utilising benchmarking, is set out. Cap ital input within productivity measurement is studied, specifically ex amining inflation, technological change and capacity maintenance. Alli ed to total productivity, a methodology is put forward for capital inp ut for strategic analysis.