ACCOUNTING FOR

DECISION MAKERS (ADM)

MBA

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 ADM
• MODULE : MBA7001
• CREDITS : 20
• SESSIONS: 20
• BOOKS : Atrill, P., & McLaney, E.,(2012)
Accounting and Finance for Non-Specialists
(8th ed), Financial Times/Prentice Hall
• PEDAGOGY : Lecture Discussion;
Illustrations; Practical Case Studies; Group
Work & Presentation
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 ADM
AIM(S)

 To provide future managers with a level of

practical understanding that is genuinely
useful in the workplace by covering a range
of key financial and management
accounting areas
 To interpret financial statements
 To understand cost classification and
behaviour in short-term decision making
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 To understand principles of budgeting and
 ADM
LEARNING OUTCOMES
 
After completion of the module, the student will be
able to:
 Demonstrate a critical understanding of, and
evaluate, balance sheets and income statements
 Interpret the financial data commonly provided by
accountants to managers
 Use marginal costing & breakeven analysis to
evaluate and solve of a range of realistic problems
 Prepare & interpret cash budgets as part of
budgetary control ssb/adm/cmba5 4
 ADM
MODULE DESCRIPTORS:
• Introduction to Accounting
• Financial Statements
• Ratio Analysis
• Working Capital
• Cost-Volume-Profit Analysis
• Budgeting

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 ADM
• INTRODUCTION TO ACCOUNTING
1. Nature and roles of accounting
2. Users of financial information and
their needs
3. Distinction between financial and
management accounting

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 ADM
• FINANCIAL STATEMENTS
1. Prepare a simple balance sheet and
income statement
2. Discuss accounting conventions
underpinning the financial statements
3. Discuss uses and limitations of the
financial statements

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 ADM
• RATIO ANALYSIS
1. Calculation of key ratios for assessing
the profitability, efficiency, liquidity
and gearing of a business
2. Explain the significance of the ratios
calculated
3. Discuss the limitations of ratios as a
tool of financial analysis

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 ADM
• WORKING CAPITAL
1. Managing Inventories,
Receivables, Payables
2.Operating Cash Cycle
3.Working Capital
Management
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 ADM
• COST-VOLUME-PROFIT ANALYSIS
1. Distinction between fixed and variable
costs – their classification and
behaviour
2. Using break-even analysis to evaluate
business opportunities
3. Using marginal costing for decision
making on maximising returns

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 ADM
• BUDGETING
1. Explain the budgeting process and the
interlinking of the various budgets
within the business
2. Construct various budgets, including
the cash budget from relevant data
3. Understand why profit is not the same
as cash flow

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