Managing Financial Principles and Techniques Essay

Words: 1752
Pages: 8



This unit will give learners a foundation in financial principles and techniques relevant to the strategic management process. It encourages learners to explore the nature of cost-based financial data and information, the impact of the budgeting process on the organisation, and the development of cost reduction and management procedures and processes. It also focuses on the management of these costs through the use of forecasting, appraisal and financial reporting procedures. One of the main objectives of this unit is for learners to develop the confidence to apply, analyse and evaluate financial and cost information.

Areas of Learning

Be able to apply cost concepts to the decision-making process
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30 ––– ––– 140 120 ––– –––
Financed by:
Issued capital 70 120
6% Preference Shares 10 –
Revenue reserves 60 – ––– ––– 140 120 ––– –––
Average stock 50 60
Cost of sales 220 730
Sales 270 810
Gross profit 50 80
Net profit 30 30