Learning Objectives

The Principles of Managing Financial Performance (Knowledge) unit is about understanding the principles of managing financial performance. You will have the knowledge to be able to use a range of techniques to analyse information on expenditure. You will also be able to make judgements to support decision making, planning and control by managers.

The Measuring Financial Performance (Skills) unit is about measuring financial performance. You will have the skills to collect and analyse information, monitor performance, and present reports to management.

In order for you to be successful in the two financial performance units you will need to be able to explain, define, describe, calculate and analyse a range of fundamental concepts and techniques. Many of the concepts and techniques are interrelated and you will need to understand how the concepts and techniques interrelate. You may also be required to explain and describe these relationships.

You will need to have a detailed understanding of the fundamental management accounting concepts and techniques in order to demonstrate competence in the learning outcomes. You will also need to be able to define and explain fundamental concepts and apply your knowledge to questions which may require the calculation or application of one or more of these fundamental concepts or techniques.

Learning Outcomes

• Cost clarification, cost recording, cost reporting and cost behaviour.
• Marginal costing and absorption costing.
• Standard costing and variance analysis.
• Performance indicators and ‘what if’ analysis.
• Cost management.
• Basic statistical methods.