MBM7632 - Financial Performance Management

Objectives:

On successful completion of the module, students will be able to:
Understand and employ specialist cost and management accounting techniques (ABC, Target costing, Life Cycle costing, Throughput Accounting, CVP).
Analyse, evaluate and recommend systems of budgetary regulation and control and employ quantitative and analytical techniques in multiple variance reporting.
Explain the use of standard costs and the effects of variances on staff motivation and action.
Understand and employ specialist techniques in performance measurement, including NFPIs.
Analyse and evaluate performance in not for profit organisations and the public sector, including external considerations and behavioural aspects.

Content:

Identification of cost drivers under ABC and comparison with traditional methods of absorption costing. Target costing, Life Cycle costing, Throughput accounting and Environmental accounting. Cost analysis for decision making and relevant costing. CVP analysis and break even analysis and limitations of CVP. Pricing decisions and straight line demand equation and calculation of optimal price. Make or buy and other short-term decision making. Risk and uncertainty in decision making, application of expected values and sensitivity, decision trees and multi-stage decision making. Budgetary control systems, types of budget and quantitative analysis of budgetary and outrun data and role of budgeting in performance management. Variance analysis and reporting, full cost operating statements, material and yield variances, sales mix and quantity variance calculation and analysis, planning and operational variances and behavioural aspects of standard costing. Performance measurement and control and calculation and interpretation of FPI and NFPI. The balanced scorecard and building block models. Divisional performance and transfer pricing, ROI and RI calculations and interpretation. Performance analysis in the not for profit and public sector, VFM and use of no quantifiable objectives. External considerations of performance management.

Learning and Teaching Information:

The sessions will be organised in mainly 2.5-hour teaching blocks. Lectures will deliver core theoretical frameworks followed by seminar discussions and workshops.

Lectures
Contact hours: 12
Intended group size: Whole cohort

Seminars/workshops
Contact hours: 12
Intended Group size: Groups 6-8

Guided independent study
Hours: 176

Assessment: