This unit provides the learner with the skills to apply financial principles relevant to strategic management in an organisational context, including forecasting, capital appraisal, budgeting, financial appraisal and analysis.
Organisations operate in a very competitive and continually changing environment where effective decision making is crucial if an organisation is to survive or even be profitable. An important resource for decision making is financial information and it is important for managers to be able to interpret, analyse and evaluate this information effectively.
This unit will give learners a foundation in financial principles and techniques relevant to the strategic management process. It encourages learners to explore the nature of cost-based financial data and information, the impact of the budgeting process on the organisation, and the development of cost reduction and management procedures and processes. It also focuses on the management of these costs through the use of forecasting, appraisal and financial reporting procedures. One of the main objectives of this unit is for learners to develop the confidence to apply, analyse and evaluate financial and cost information.
Learners will develop the ability to judge the sources, nature, accuracy and completeness of cost-based information and influence others to make decisions that are based on well-researched options. These important decision-making skills will be enhanced further through the use and validation of forecasting techniques, the consideration of financial statements and making judgements on the validity of information sources used in the decision-making process.
Learners will also apply strategies associated with determining sound management information with reference to sources of funds, the potential investment of resources and the interpretation of financial statements.
Learners will study issues of cost, responsibility and control in the contexts of management accounting and the management process. This unit gives learners the opportunity to enhance their competency in the construction, review and evaluation of cost-based financial information, and introduces them to the analysis and control or reduction of costs in a range of situations.