| Unit name | Finance and Accounting for Management |
|---|---|
| Unit code | ECONM1015 |
| Credit points | 15 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
| Unit director | Ms. Spencer |
| Open unit status | Not open |
| Pre-requisites |
None |
| Co-requisites |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
This unit is designed to give the MSc in Management programme students a thorough grounding in the fundamentals of Finance and Accounting.
The following key areas in Accounting will be covered:
· Understanding and interpretation of the annual report and in particular the financial statements
· Cash management
· Short-run decision making, including break-even and cost-volume-profit analysis, relevant costing and opportunity costs
· Costing techniques, including full costing and activity based costing
The following key areas in Finance will be covered:
· Investment appraisal; including discounting, cost of capital, portfolio diversification, financing decisions and the role of the stock market
On successful completion of this unit a student will be able to:
1. Interpret and evaluate the health of an organisation using key financial information, such as financial statements and cash budgets, and make recommendations for improvements;
2. Explain and appraise cost concepts, information systems and quantitative techniques for internal control and decision-making;
3. Identify and apply the principles of investment appraisal;
4. Solve and assess finance problems, such as the calculation of the weighted average cost of capital, using a knowledge of basic financial mathematics.
Lectures and classes. 25 hours in total, typically 18 hours of lectures and 7 hours of classes. First term courses are crucial in establishing the basis for more advanced options in the second term. Hence, a relatively intensive course for students who may have no previous experience in finance and accounting.
Summative assessment will be by 3 hour exam in January. The assessment will test the student’s breadth in understanding of the unit topics, whilst allowing the student to make some choices in the questions chosen. The summative examination will include questions that test computational skills, ability to evaluate financial information and understanding of key concepts in accounting and finance. Students may be asked to calculate and appraise an organisation using financial information and make recommendations for improvement, assess investment proposals and explain key finance theories such as the weighted average cost of capital. The summative exam contains questions that test ILOs 1-4.
Regular formative assessment is undertaken during the course using exercises. Exercises may be asked to analyse and interpret financial information, make recommendations for improvement or critique concepts. The formative assessment will address ILOs 1 and 3 and draw in elements of all other ILOs
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