Text only

 University | Catalogues for 2006/07

University of Bath logo - link to University home page

School of Management, Unit Catalogue 2006/07

MN10248 Introduction to accounting & finance (Elec Eng / Maths)

Credits: 6
Level: Certificate
Semester: 1
Assessment: CW 30%, EX 70%
Aims: The module aims to test the students' ability to:
* Explain the conceptual and regulatory framework of accounting
* Apply and understand double entry & incomplete records techniques
* Prepare a set of accounts from basic financial data
* Apply interpretative techniques to published financial statements.
* Explain the basic concepts and processes used to determine product and service costs.
* Explain absorption cost, marginal cost, ABC and relevant cost concepts.
* Apply CVP analysis and interpret the results.
* Explain the role of budgets and standard costing within organisations.
* Prepare and interpret budgets, standard costs and variance statements.
* Apply investment appraisal techniques.
* Analyse the financing options for business entities.
Learning Outcomes:
Students will understand how accounting and financial management serves the purpose of developing and operating a business. They will acquire a broad knowledge of the different dimensions of financial management and accounting and an introductory working knowledge of basic tools of financial analysis and practice.
Financial data manipulation and interpretation. Analytical and communication skills in relation to financial information. Coursework to demonstrate practical analytical skills and foster inter-group communication and time management skills.

(a) Financial planning and control
* The financial dimension of businesses and other organisations
* Financing asset acquisition and an introduction to the cost of capital
* Estimating costs for planned activities : fixed and variable costs; direct and indirect costs; basic elements of product cost
* Preparation of cash budgets - including spreadsheet modelling and sensitivity tests
* Annual budgeting, profit planning, liquidity control and longer term financial projections,
* Preparation of budgets and projected Profit and Loss Accounts and Balance Sheets
* Controlling operations and cost control
(b) Reporting results in financial terms
* Reporting performance and financial results to higher levels in the organisation: cost centre reports, profit centre reports, investment centre reports
* Reporting the results to shareholders and other outside parties: preparation of final accounts, structure and interpretation of final accounts, underlying concepts (going concern, prudence, materiality, etc.)
* Measures of performance in the financial press: share prices, earnings per share, p/e ratios, assessing the quality of earnings announcements, etc.
* Outline of the role of company law, the accounting profession and Accounting Standards in controlling the content of published information
* Outline of complications created by going international / global for investment analysis, financing the business, financial control and financial reporting.


University | Catalogues for 2006/07