Monash College Unit Guide

FINANCIAL DECISION MAKING (MCD1120)

Purpose

All business students should have a sound knowledge of basic accounting concepts and an appreciation of the uses to which financial information can be put in a planning and decision-making environment.

This unit will introduce students to the role of, and the process involved in, planning and decision making within a business environment. It aims to introduce students to basic accounting concepts and selected accounting practices. The major emphasis is on the use of accounting information, but also includes the preparation of a variety of accounting reports, both manually and with the assistance of various computer applications.

Prerequisites

MCD1010 Accounting for Business.

Learning outcomes

On completion of this unit, students should be able to:

1. Demonstrate an understanding of the preparation and production of Financial Statements inclusive of GST considerations and its use in decision making
2. The application of Variance analysis (both manually and with the use of spreadsheets), comparing actual information with budgeted and industry for the purposes of analysing, understanding, and subsequent decision making.
3. The Preparation of reports using analysis and Interpretation (Ratio analysis) examining short and long term Financial Structures and Performance and Profitability (using spreadsheets) and demonstrating an ability to understand real case studies, and the ability to articulate the relevance of respective outcomes
4. Understand the nature of costs, and Cost/ volume/ profit analysis. (using spreadsheets) and the demonstration by students of the ability of to use this information to enhance decision making in a business
5. The ability of students to understand and prepare to a limited level, various simple Budgets (with limited application of spreadsheets) and the interpretation of the same for enhanced decision making

Assessment

Assignments: 40%

Final examination: 60%

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