MBM1610 - MANAGEMENT ACCOUNTING AND FINANCE

Module Identifier

MBM1610

Module Title

MANAGEMENT ACCOUNTING AND FINANCE

Academic Year

2003/2004

Co-ordinator

Professor Owain M Ap Gwilym

Semester

Semester 2

Course delivery

Lecture

16 Hours

Seminars / Tutorials

4 Hours

Assessment

Assessment Type	Assessment Length/Details	Proportion
Semester Exam	2 Hours	80%
Semester Assessment		20%

Learning outcomes

Having competed the module, students will be able to:

(Management Accounting:)

distinguish between, compare and contrast financial and management accounting
describe, explain and illustrate the key concepts which underlie management accounting
explain the purposes, main uses and limitations of management accounting
apply various management accounting techniques for valuation, decision making and control
assess their usefulness, criticise and comment on their relative advantages and disadvantages of these techniques

(Finance:)

explain the role of Financial Management and the concepts which underlie it
identify sources of short, medium and long term finance and identify key elements of capital markets
apply various investment appraisal techniques
explain the assumptions underlying traditional and discounted cash flows investment appraisal techniques
discuss and explain the advantages and disadvantages of the various investment appraisal techniques
explain understand the treatment of inflation in investment appraisal analysis
calculate the cost of share (equity) capital and debt capital and a firm''r overall cost of capital.

Brief description

The module introduces the fundamental concepts and techniques of corporate financial management, within the themes of financing, investing and restructuring.

Objectives

Management Accounting: The objective is to introduce students to the principles and practices of management accounting as relevant to management valuation, decision-making and control within (principally) commercial organisations.

Finance: The objective is to introduce students to the principles underlying the financing and investment decisions required of commercial organisations and the interaction between financing and investment decisions.

Content

1. The Business Finance Environment and Corporate Governance
2. The Role of Financial Markets and Institutions
3. Costs of Financing and Capital Structure
4. Time Value of Money and Investment Appraisal
5. A Review of Investment Appraisal Techniques
6. Mergers, Acquisitions and Restructuring

Outline syllabus

Management Accounting:

introduction; classification of costs
absorption vs. marginal costing; ABC
contribution analysis; break even; scarcity
relevant costs and decision making
budgets and variance analysis
decentralised management; transfer pricing
divisional and prioject appraisal

Finance:

introduction
sources of finance
investment appraisal
cost of finance

Reading Lists

Books
Atrill, P (2003) Financial Management for Non-specialists 3rd edition. FT Prentice Hall
McLaney, E J (2003) Business Finance: Theory and Practice 6th edition. FT Prentice Hall
Pike, R and B Neale (2003) Corporate Finance and Investment 4th edition. FT Prentice Hall

Notes

This module is at CQFW Level 7