What you will study
The module consists of four units:
Unit 1 Financial reporting considers the importance of financial reporting for managerial use and the role of accounting in how an organisation’s transactions are recorded and reported. You will learn about the importance of cash and how it differs from profit. You review accounting terms and terminology and the two main financial reporting statements: the income statement (often called the ‘profit and loss account’) and the balance sheet.
Unit 2 Measuring financial performance explains the use of financial ratios to measure financial performance. Most owners of businesses or managers in organisations want to assess their performance in a structured way and financial reports are an important mechanism to achieve this. Without financial reports, managers cannot make decisions about how to develop or change the activities that they manage in their organisation. You will learn about and practise using some of the key financial ratios that help managers assess performance and identify some useful ratios for your own organisation.
Unit 3 Cost management explores a range of techniques and approaches that help managers assess the impact on costs of changing scenarios, as well as assess the implications of allocating overhead costs. Managerial planning and decision-making require knowledge of what might change when decisions are taken. Unit 3 has as its main focus organisational costs and cost management, in particular how costs might change as decisions are taken.
Unit 4 Cash management and budgeting shows you how to use cash reporting in decision making. Cash is an essential organisational resource and managers need to know how and why cash has been used. Cash forecasts are useful for planning and decision making for the future. This unit will introduce you to budgets – what they are, what they record, what they are used for and how they can help you exercise financial control in your area of managerial responsibility.
You will learn
After completing this course you should be able to:
- Understand the importance of cash as an organisational resource and explain the difference between cash and ‘profits’.
- Understand the purpose of financial reporting statements.
- Use financial measures to evaluate performance.
- Understand different types of cost and associated cost behaviours and apply costing techniques in managerial decision-making.
- Understand the budgeting process, the behavioural implications of budgeting and how budgeting can help managers to achieve their objectives.
- Use financial techniques, such as budgeting, in planning, controlling and assessing performance.
Successful completion of this course enables us to recognise your achievement of the course learning by issuing an OU certificate that you can use to document your commitment to continuing professional development in your personal portfolio, or to provide evidence to employers or professional body.
Expert, confidential learner support is available when you need it from a learning adviser. Other support is available via the course forum, library, StudentHome website and computing helpdesk.
The work-based activity for this course has been designed as an integrated ongoing activity that you submit at the end of your study. It will allow you to reflect on your learning and how to use it in your professional work.