Accounting and Economics for Decision Making (DL)

Module code: AFE7036-B

Module Aims       

To develop a comprehensive understanding of financial and organisational decision making, including the workings of the economic and market environment within which firms operate. To provide students with the opportunity to use and apply accounting, finance and economics concepts, including fundamental concepts and techniques in financial and management accounting. To make use of financial and economic concepts, constructs and frameworks in support of business problem appraisal and decision making. To enable students to critically evaluate business problems and evaluate data in support of responsible business decision making. This unit builds strong links between accounting and economics by helping students understand the preparation and articulation of the main financial statements and to use the data therein for financial analysis.To develop a comprehensive understanding of financial and organisational decision making, including the workings of the economic and market environment within which firms operate. To provide students with the opportunity to use and apply finance and economics concepts, including fundamental concepts and techniques in financial and management accounting. To make use of financial and economic concepts, constructs and frameworks in support of business problem appraisal and decision making. To enable students to critically evaluate business problems and evaluate data in support of responsible business decision making.

Outline Syllabus   

i) Demand, supply, markets, resource allocation. Market structure, conduct and performance of firms. (ii) Intervention within and regulation of markets; market concentration and competition policy. (iii) National income, output and economic growth; output, employment and inflation. Government fiscal and monetary policy. (iv) Exchange rates and balance of payments; globalisation, international trade and investments. (v) Conceptual framework of accounting; financial statements (Income Statement, Statement of Financial Position, and Cash Flow Statements); Financial analysis (ratios, comparisons, trends, corporate failure and earnings manipulations (vi) An introduction to cost and management accounting, including marginal costing and budgeting and its behavioural implications. (vii) Investment appraisals (Viii) Current topics in accounting and finance (e.g. behavioural economics); use of databases; responsible decision making.(i) Demand, supply, markets; resource allocation. (ii) Market structure, conduct and performance of firms. (iii) Intervention within and regulation of markets; market concentration and completion policy. (iv) National income, output and economic growth; output, employment and inflation. (v) Government fiscal and monetary policy. (vi) Exchange rates and balance of payments; globalisation, international trade and investments. (vii) Accounting concepts and policies; profit and loss; the balance sheet; cash flow; financial statements; interpretation and evaluation of accounts. (viii) Ratios, comparisons and trends. (ix) An introduction to financial management. Investment appraisal and return on investment. (x) An introduction to cost and management accounting, including marginal and absorption costing. (xi) Budgeting and budgetary control, including the behavioural implications of budgeting. (xii) Behavioural economics; use of databases; responsible decision making.

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