Strategic Financial Management

Unit Aims

The aim of this unit is to enable learners to apply financial principles relevant to management in an organisational context, including analytical techniques and theories/models of management accounting, evaluation of budgetary processes, recommending funding sources and appraising investment options.

1. Be able to apply the tools and techniques of cost accounting.

1.1 Critically analyse the concepts, features and importance of cost accounting in an organisation.

1.2 Apply tools of costing design and costing systems to an organisation.

1.3 Recommend improvements to the costing and pricing systems of an organisation.

2. Be able to critically analyse the financial performance of businesses.

2.1 Analyse financial statements to assess the financial position of an organisation.

2.2 Recommend organisational decisions based on evaluation of financial statements using financial ratios.

2.3 Propose managerial recommendations on the strategic portfolio of an organisation based on financial analysis.

3. Be able to evaluate the budgetary processes of organisations.

3.1 Evaluate budgetary targets for an organisation.

3.2 Develop a master budget for an organisation.

3.3 Critically evaluate budget and budgetary processes in an organisation.

4. Be able to recommend effective long term and short-term sources of funding.

4.1 Assess the need for short term working capital and long- term funds for an organisation.

4.2 Appraise appropriate sources of short term and funds for an organisation.

4.3 Justify choices of sources of funds using a range of criteria related to cost and risk.

5. Be able to critically appraise investment options.

5.1 Apply financial appraisal methods to analyse competing investment projects in different kinds of organisations.

5.2 Justify strategic investment decision for an organisation using relevant financial information.

5.3 Critically analyse strategic investment decisions using information.