Short Title:Financial Planning
Full Title:Financial Planning
Module Code:DMKT H2022
 
ECTS credits: 5
NFQ Level:6
Module Delivered in 2 programme(s)
Module Contributor:Sandra Thompson
Module Description:The purpose of this module is to enable the learner to examine and interpret financial and management statements; use revenue and cost information in decision making; calculate break–even analysis and profit maximisation; construct a cash budget; apply cost information to pricing decisions, and prepare a profitability analysis report
Learning Outcomes:
On successful completion of this module the learner will be able to
  1. Calculate, analyse and interpret key financial and management ratios from a set of financial and management accounts statements
  2. Identify and analyse the relationship between cost, volume and profit and how this will effect decision making within the organisation
  3. Prepare a cash budget and be able to identify where budgeting fits into the overall organisation
  4. Compute the profitability of an organisation and present a profitability analysis by customer profile/region/country/product to management of an organisation
  5. Produce pricing plans for a product using various costing approaches
 

Module Content & Assessment

Indicative Content
Analysis and interpretation of financial and Management statements:
• Analyse the profit and loss account and balance sheet of a business by preparing key ratios, thereby gaining a greater understanding of the performance of a business. Analyse non monetary ratios from management accounting reports such as no. of products per product line, • The results of the formulae concerned are considered in the context of marketing campaigns/month on month trends/year on year trends and also in relation to the industry sector in which the business operates. • They key ratios are listed here: Ratio Analysis for Profit and Loss Account: Gross Profit Margin, Net Profit Margin, Breakeven, Expenses as a percentage of sales: Ratio Analysis of the Balance Sheet: Debtor days, Creditor Days, Current Ratio and Stock Turnover, Contribution per product, machine hours ; downtime; non monetary ratios
Cost Volume Profit Analysis
• Examine the relationship between changes in activity (marketing spend) and changes in total sales revenue and profit, thus allowing management to identify critical output levels. • Contribution, profit – volume ratio, margin of safety and breakeven point will be examined to aid the decision making process
Budget process and budgetary planning
• Explain how budgeting fits into the overall organisation • Identify and describe the purposes of budgeting and the stages in the budget process • Preparation of cash budgets
Pricing & Profitability Analysis
• The role of cost information in pricing decisions • Product, customer and regional profitability analysis • Describe the target costing approach to pricing, and the different cost plus pricing methods for deriving selling prices • Identify and describe the different pricing policies
Indicative Assessment Breakdown%
Course Work Assessment %100.00%
Course Work Assessment %
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Case study Students will be presented with a case study which will include a set of monthly management accounts, from there they will be required to calculate, analyse and interpret key financial and management ratios 1 15.00 n/a
Project From a case study students will be required to prepare and present a report for management identifying the cost volume profit analysis of a new product offering/multi product offerings and prepare a cash budget for a period to show the affect on cash resources of the new product(s). 2,3 40.00 n/a
Written Report From a case study prepare a pricing plan for a new product and produce a profitability analysis in report format for a product/customer/region/segment based on existing product sales. 4,5 30.00 n/a
Multiple Choice Questions Multiple choice questions on all topics of the module 1,2,3,4,5 15.00 n/a
No Final Exam Assessment %
Indicative Reassessment Requirement
Repeat examination
Reassessment of this module will consist of a repeat examination. It is possible that there will also be a requirement to be reassessed in a coursework element.
Reassessment Description
Mixture of final exam and project

ITB reserves the right to alter the nature and timings of assessment

 

Indicative Module Workload & Resources

Indicative Workload: Full Time
Frequency Indicative Average Weekly Learner Workload
Every Week 2.00
Every Week 2.00
Resources
Recommended Book Resources
  • Colin Drury, Cost and Management Accounting, Cengage Learning Business Press [ISBN: 9781408032138]
  • Colin Drury, Management and Cost Accounting, Cengage Learning EMEA [ISBN: 9781408041802]
This module does not have any article/paper resources
This module does not have any other resources

Module Delivered in

Programme Code Programme Semester Delivery
BN_BDMKT_8 Bachelor of Arts (Honours) in Digital Marketing 4 Mandatory
BN_BDMKT_7 Bachelor of Arts in Digital Marketing 4 Mandatory