Emmanuel C., Otley D., and Merchant K., (---) Accounting for Management Control. Chapman & Hall.
Merchant K., and Wim Van der Stede., (2003) Management Control Systems: Performance Measurement, Evaluation and Incentives. Pearson
(ISBN: 0273655965)
McLaney, E. (2003) Business Finance: Theory and Practice, 6 Ed. FT: Prentice Hall. (ISBN: 0273 673 564)

Must have studied Accounting & Financial Information (BLB00039-2) or equivalent.

Library learning resources including On-line databases
The Module website

The learning strategy for the module requires students to commit 300 learning hours (including assessment) of this there will be 60 hours of class support and 240 hours of independent and self directed study. Support will also be given by access to Scheduled Tutor Office Hours to support the module.

The lecture/tutorial pattern may vary with some activities taking place in medium size group workshops.

24 hours of formal lectures
12 hours of formal lectures/large group activity
24 hours of tutorials

There will be formative feedback to monitor progress during the module, in addition to the summative assessments (computer based assessment and exam/test)

This module begins by introducing you to financial objectives and financial management. You will study the range of different sources of finance available to businesses, including securities markets and government based financing. This leads to a consideration of the costs of raising different types of finance and then to the cost of capital and the efficient market hypothesis.

You will then proceed to calculate and interpret key financial ratios, including financial and operational gearing. Working capital control and cash management will be examined. The module progresses by enhancing your study of investment appraisal (for instance, by considering capital rationing, taxation and inflation). This will include advanced aspects of the use of DCF techniques.

You will then go on to issues of risk and uncertainty, profitability and sensitivity, and their effects on decision-making.

The first part of the module concludes with business valuations and corporate restructuring, including takeovers and mergers.

The second part of the module builds on your previous study of managerial accounting. Your knowledge and understanding of cost-volume-profit analysis and breakeven analysis will be further developed. This will lead to a consideration of optimal product mix decisions; pricing decisions, both external and internal; and special decision situations. The use of relevant costs for decision-making is examined.

The module will progress to introduce you to control theory; particularly aspects of information, systems and control, including internal and external sources of information. This leads on to the cybernetic model of control and then to issues of centralisation, de-centralisation and devolution of budgets.

You will go on to study the social and behavioural aspects of management accounting. This will involve examining organisational structure and organisational culture, and group behaviour. Particular consideration will be given to budgeting and standards in dynamic conditions. The application and limitations of contingency theory will be featured.

The final element of the module concerns performance evaluation. You will study the uses and limitations of ratio analysis and other performance indicators, including ROCE and residual income. The importance of non-financial aspects will also be stressed. This will lead to the study of multiple indicators, the balanced scorecard, the tableau du bord and benchmarking. Issues concerning divisional performance measurement will also be covered.

One 2500 word report based on numerical analysis during the module (L.Os. 1, 2 and 3), 50%
1.5-hour examination at end of module L.Os. 3 and 4), 50%