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Unit 4, Management of Financial Resources and Performance

Level 7, Unit 4 - Management of Financial Resources and Performance (25 credits)

1. Be able to use financial statements and other management accounting information to evaluate performance, appreciating the limitations of such analysis.

2. Be able to support the effective management and control of resources through a focus on performance.

3. Understand organisational objectives and methods of financing their achievement including associated risks.

4. Be able to use financial data, techniques and tools to inform long term capital decisions.

5. Understand the international aspects of financial strategy.
1.1 Identify, calculate and interpret key performance ratios from an organisation’s financial statements. 2.1 Critically evaluate contemporary management accounting methods. 3.1 Identify the tensions between financial and strategic objectives and associated risks. 4.1 Appraise capital investment projects, using a range of methods. 5.1 Identify the financial risks of operating in an international market.
1.2 Discuss the limitations of financial statements and consider the impact of these limitations on analysis. 2.2 Explain the role of activity based management as a basis for costing, budgeting and benchmarking. 3.2 Identify and evaluate key sources of finance available to organisations and associated risks. 4.2 Calculate an organisation’s cost of capital and explain the limitations of such calculations. 5.2 Evaluate international investment decisions.
1.3 Use financial statements and other published financial data to evaluate comparative performance. 2.3 Use cost management methods to support lean enterprise, business excellence and value chain analysis. 3.3 Explain the role of treasury management in the financing, risk and control of liquidity. 4.3 Evaluate strategic investment opportunities and financially appraise strategic proposals. 5.3 Analyse financing options for multinationals and overseas subsidiaries.
1.4 Use financial statements and other published financial data to evaluate comparative performance. 2.4 Prepare and present strategic management accounting information to support investment decisions. 3.4 Identify types and sources of risk for organisations including those operating internationally.
1.5 Use marginal cost methods to support short term decision making. 2.5 Use empirical data to inform forecasts of the likely benefits of strategic actions based on prior performance. 3.5 Use appropriate techniques for evaluating and managing an organisation’s risk.
1.6 Identify the strengths and weaknesses in budgetary methods in order to improve value through better budgeting. 2.6 Appraise the impact of resource decisions on an organisation’s performance. 3.6 Prepare and utilise risk management reports.
1.7 Use management accounting information in the planning and control of an organisation’s resources and appraise its effectiveness. 2.7 Use information derived from the processes and activities of an organisation to improve resource allocation.
2.8 Evaluate the use of benchmarking of products, processes and practices to identify opportunities to deliver improved value.