Financial Decision and Control

Module Title	Financial Decision and Control
Module Code	25-5078-00S
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	Option
Level	5
Credit Points	20
Assessment Mode Weighting	Coursework 50% (30% groupwork,20% individual) Examination 50%
Pre-requisites	Students should be advised that they need to have studied an introductory accounting module prior to selecting this module. Debarred module: Applied Management Accounting
Co-requisites	None
Breakdown of Student Learning Hours by Type	Class contact 1.5 hours per week - Directed learning 5 hours per week
Directed Learning
Average Weekly	5
Module Leader	Nick Payne
	Sheffield Business School
Module Banding	A
Approval Status	Validated

AIMS AND RATIONALE

These are the aims of this module:

1. To develop an understanding of the function and purpose of a management control systems in relation to the competitive situation.
2. Use appropriate management accounting techniques to support the decision making process.
3. To develop an understanding of the process of performance control and management.
4. To develop an understanding of the budgetary control and performance measurement systems, both financial and non financial, employed by different types of organisations.
5. To develop an understanding of the difference between financial and management accounting.
6. To develop an understanding of the control issues relating to large divisionalised firms.

Rationale for the module:

The module is designed to provide students who are not accounting specialists with an understanding of financial control systems in order that they can contribute to effective management decisions. The unit will expose students to a range of financial management techniques that will assist them in understanding the management process. It builds on the general understanding of the nature of business developed by students in their earlier studies.

By the end of the module you will be able to:

1. Understand the difference between, financial accounting, management accounting and corporate finance.
2. Understand the process and concepts of control, the hierarchy of control, divisionalisation and transfer pricing.
3. Understand the control of costs, classification of costs and the problem of overheads
4. Apply appropriate decision making techniques. Short-term decision making and modelling. Capital Investment and long term decision-making.
5. Apply internal financial control systems. Budgets, public sector budgeting, and activity based budgeting.
6. Apply performance measurement concepts, financial and non-financial, cash or profit. The Balanced scorecard.
7. Understand management control issues in Service Organisations

Learning and Teaching Methods:

Topics will be introduced by way of lectures, and developed in seminars. Students will work in learning sets on a variety of case study based problems. Learning sets will be expected to make presentations on various topics during the course.

Students will be provided with guidance regarding skills packs and Key Skills Online, as well as training sessions with staff from the Adsetts Centre on the use of online data bases and information sources.

Blackboard will be used to support the students learning.

ASSESSMENT AND FEEDBACK

This is how the learning outcomes will be assessed:

The degree of attainment of the learning outcomes for the module will be assessed through a combination of coursework and examination.

Coursework Component: 50%

This will comprise one piece of group work in the form of a presentation and one piece of individual work in the form of a report.

The assessment criteria for the full range of marks are given in detail at the end of this module specification.

Examination Component: 50%

This will consist of a three hour paper containing a combination of numerical and essay type questions.

The assessment criteria will be broadly the same as for the assignment. Referencing to the same standard will not of course be expected, but answers should demonstrate clearly knowledge and understanding of relevant academic theory and the problems of implementation.

This is how and when you will be given feedback on your performance:

The module leader will provide written feedback on each piece of coursework within three weeks of the submission deadline. In addition, students will be given the opportunity for feedback and learning guidance through scheduled meetings with the module leader.

The assessments are mainly summative. Informal formative feedback on students' performance will be provided during and at the end of the unit.

Main Learning Resources

Recommended Textbooks:

Managing Financial Resources – Broadbent & Cullen

Management & Cost Accounting - Drury

Introduction to Management Accounting - Horngren, Sudem, Stratton

Management & Cost Accounting - Horngren, Bhimani, Datar, Foster

Learning Outcomes	Assessment Criteria	Fail	Pass, 40-49%	50-59%	60-69%	Distinction 70%
Understand the difference between financial accounting management accounting and corporate finance.	Assignment and Examination	Inadequate evidence of knowledge, inaccurate and confused use of terms, concepts and relationships.	Correct explanation and appropriate application of some of the main concepts, and terminology used in financial decision making.	Correct explanation, well-reasoned and supported application.	Detailed and correct explanation, well reasoned, wide-ranging and supported application.	Excellent explanation and comprehensive application.
Understand the process and concepts of control, the hierarchy of control, divisionalisation and transfer pricing.	Assignment and Examination	Inadequate and confused knowledge of control concepts. Unable to recognise control problems.	Correct but limited use of concepts. Identified problems but limited explanations, no solutions	Clear explanation and use of appropriate knowledge, supported by examples. Able to identify some solutions	Detailed explanation and use of wide-ranging knowledge well supported by effective use of examples. .Able to identify a number of possible solutions	Comprehensive explanation and application of wide-ranging knowledge fully and effectively supported by use of examples. Able to identify a number of workable solutions
Understand the control of costs, classification of costs and the problem of overheads	Assignment and Examination	Incomplete, confused, and/or inappropriate selection and use of principles and tools for successful control of costs. Unable to identify the cost control problems	Correct use of relevant tools for cost control, limited understanding of the decision making issues.	Effective use of relevant tools for cost control and decision making	Effective use of relevant tools for cost control. Clear and focused consideration of some of the limitations of the tools. Able to apply them to the decision making problem.	Well-explained, comprehensive and perceptive use of relevant tools for cost control and decision making. Comprehensive, critical evaluation of the issues identified.
Apply appropriate decision making techniques.	Assignment and Examination	Inadequate and confused knowledge of theories shows little familiarity with the required financial tools.	Correct explanation and appropriate use of some the financial tools.	Correct explanation and appropriate use of a wide range of financial tools Able to apply them to decision situations.	Correct explanation and appropriate use of a wide range of financial tools Able to effectively apply them to the decision situation.	Correct explanation and appropriate use of a wide range of financial tools Able to effectively apply them to the decision situation. Able to critically evaluate the tools.
Apply financial and non-financial performance measurement systems to the process of control and decision making.	Assignment and Examination	Inadequate and confused knowledge of theories shows little familiarity with the methods of financial and non-financial performance measurement.	Correct explanation and appropriate use of some the financial and non-financial performance measurement systems.	Correct explanation and appropriate use of a wide range of financial and non-financial performance measurement systems. Able to apply them to business problems.	Correct explanation and appropriate use of a wide range of financial and non-financial performance measurement systems. Able to effectively apply them to business problems	Correct explanation and appropriate use of a wide range of financial and non-financial performance measurement systems. Able to effectively apply them to business problems. Able to critically evaluate them.
Understand management control issues in service organisations.	Assignment and Examination	Inadequate and confused knowledge of the use management control and decision techniques in service organisations	Adequate knowledge of the use management control and decision making theories in service organisations	Correct explanation and appropriate use of a wide range of financial and non-financial performance measurement systems and decision making techniques in service organisations.	Correct explanation and appropriate use of a wide range of financial and non-financial performance measurement systems and decision making techniques in service organisations. With some evaluation.	Correct explanation and appropriate use of a wide range of financial and non-financial performance measurement systems and decision making techniques in service organisations. Able to critically evaluate them.