This module uses an integrated approach of applications and case studies in a retail context where a hands on problem based learning focus is emphasised to achieve the learning outcomes. The previous Accounting and Finance modules from the earlier years of the programme that provided the fundamental building blocks are Accounting and Reporting for Business Entities (Year one) and in Year two Management Accounting; and Corporate Finance. The aim of the module is to develop the skills of students to prepare them to apply various accounting and finance techniques and tools of analysis in the retail work environment.
Balancing Risk and Return, Risk Classifications – Operating Risk and Retail cost structures; Financial Risk – debt/equity/ gearing and Business Risk
Business Risk and Working Capital policies – aggressive, conservative, moderate and retail implications;
Importance of cash conversion cycle, Cash management: importance of stock control (including Inventory management models); managing receivables (terms & collection); managing payables (payment and supply chain); role of treasury department
Building Risk into Investment appraisal – discount rate, probabilities, sensitivity analysis/ what if analysis, and scenario analysis, assisted with use of Excel; Investment decisions and Financing decisions
Decision Making in Retail Contexts – CVP analysis in the Retail Sector, Breakeven Analysis, Profit Sensitivity Analysis, Relevant Costs and Revenues for decision making – product line discontinuation, Decision making with limiting factors e.g. sales demand or lack of available finance
Performance Appraisal/ Ratio Analysis; Key Performance Indicators and use of FAME data base for retail company comparison
Respective software and tools of analysis, commonly used in a retail setting for management of the above area
Students will be exposed to formal lectures / tutorials and will also be expected to engage in class discussions. The ability to apply the concepts and exercise judgment will be developed by problem solving. Feedback and support will be given in order to identify and solve problems.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |