Topic Checklist for FDM Topic 1 Budgeting Purpose Budgeting Systems Explain & Adv and Disadv Flexed

d Budget Material, Labour & Overhead Operating Statement Marginal & Absorption Explanation of variances Material Mix Material Yield Sales Mix Sales Quantity Planning & Operational Operating statements with advanced variances Specific Job/Order Make vs buy Shutdown decisions Further Processing Limiting Factor Analysis Linear Programming (no drawing of graph) Payoff Table Maximax, Maximin, Minimax Regret Expected Value Attitudes of Risk

Variances

Topic 2

Advanced Variances

Topic 3

Relevant Costing

Limiting Factors

Risk & Uncertainty

Topic 4

Pricing

Life Cycle Costing

Target Costing

What affects Price Pricing Strategies penetration, skimming, complimentary, product line, volume discounting, relevant cost, cost plus Price Demand Equation MR=MC profit maximising price and quantity Price Elasticity of Demand Stages of product lifecycle Cost and revenues over the life Why it is important? Stages of target costing Calculate target cost and cost gap Benefits Methods to close cost gap Ratios profitability, liquidity and risk. Interpretation of ratios

Topic 5

Performance Management

ROI and RI divisional performance, calculate and compare Transfer Pricing Topic 6 Intro to Financial Management Key decisions investment, financing, dividend Interrelationship of divisions Max of shareholder wealth explain Economic order quantity Total cost of inventory Bulk Discounts Just in Time Working capital funding policies Working Capital Cycle and Ratios Cash budgets Receivable Management Factoring calculate and discuss Payables as a source of finance Early Payment Discounts Short Term Funding overdraft, bank loan Leasing and Sales and Leaseback Bonds and Convertible Bonds Issue of shares Right issue calculations Ratios to assess capital structure gearing, EPS etc Different dividend policies What affects dividend policy Scrip Dividend Share repurchase Long term decision making process ARR calculate, adv & disadv Payback calculate, adv & disadv Discounted Payback calculate, adv & disadv NPV taxation, inflation, working capital, proforma, capital allowances, adv and disadv IRR calculate, adv and disadv Annuities and Perpetuities Relevant Cashflows Asset Replacement EAC Capital Rationing Sensitivity Analysis Lease vs Buy Post Completion Audit explain, benefits

Inventory

Topic 7

Working Capital Management

Topic 8

Sources of Finance

Dividend Policy

Topic 9

Investment Appraisal

Topic 1

Investment Appraisal Specific Decisions